· Addis Fortune
Addis Abeba Caps Rent Increases at 11.5pc
Topics:Law and policyMarket
Summary of the Addis Fortune report
The Addis Abeba City Administration set an 11.5 percent annual cap on residential rent increases, effective July 8, 2026, the first day of the new fiscal year. The rule covers more than half a million registered tenants. The cap sits slightly above the 11.24 percent that a city-commissioned study found acceptable while inflation stays below 10 percent. Early 2026 data from the Ethiopian Property Centre put the average monthly rent for a city-centre studio at 45,000 Br.
Key points
- Annual residential rent increases in Addis Ababa are capped at 11.5 percent from July 8, 2026.
- The rule covers more than half a million registered tenants.
- A city study found 11.24 percent acceptable while inflation stays below 10 percent.
- The average monthly rent for a city-centre studio was 45,000 Br in early 2026.
Real.et analysis
Addis Fortune reports that the Addis Abeba City Administration now caps annual residential rent increases at 11.5 percent. The rule starts on July 8, 2026, the first day of the new fiscal year. It covers more than half a million registered tenants. A study for the city found 11.24 percent acceptable while inflation stays under 10 percent, so the cap sits just above that level. Data from the Ethiopian Property Centre put the average city-centre studio rent at 45,000 Br per month in early 2026.
What this means for renters
The cap sets a ceiling, not a target. A landlord may raise rent by less, or not at all. Here is a simple example. On a 45,000 Br studio, the largest legal increase for one year is 5,175 Br. That brings the rent to 50,175 Br per month.
- Check your registration. The rule covers registered tenants. Ask your landlord whether your lease is registered with the city. An unregistered lease may give you weaker protection.
- Keep records. Keep your lease, payment receipts and any written notice of a rent change.
- Watch the timing. The cap is annual. A landlord should not split a large rise into several smaller ones within the same year.
- New leases. It is not clear from the report how the cap applies when a tenant moves into a new unit. Starting rents may rise faster than renewals.
What this means for landlords
Landlords should plan for slower rent growth on existing leases. If inflation rises above 10 percent, the city may review the cap. That is not certain.
Our guide to renting an apartment in Addis Ababa explains leases, deposits and tenant rights. You can compare current prices on our apartments for rent page.