· EBC
Government to Build 1.5 Million Houses in Next Five Years, Announces PM Abiy Ahmed
Summary of the EBC report
Prime Minister Abiy Ahmed has announced that the government is prepared to build at least 1.5 million new houses over the next five years to resolve citizens' housing supply challenges. The Prime Minister stated that while the country managed to build 1.2 million houses across Ethiopia over the past seven years, plans are now underway to further scale up this capacity to achieve the 1.5 million target in the coming five years.
Key points
- Prime Minister Abiy Ahmed said the government plans to build at least 1.5 million houses over the next five years.
- He said the country built 1.2 million houses over the past seven years.
- Houses will come from the government, the private sector and public-private partnerships, under a policy the Council of Ministers approved.
- The plan includes a savings system with long-term payments and a rental option for those who cannot buy.
Real.et analysis
EBC reports that Prime Minister Abiy Ahmed announced a plan to build at least 1.5 million new houses over the next five years. He said the country built 1.2 million houses over the past seven years. The new houses will come through the government, the private sector and public-private partnerships, under a policy that the Council of Ministers has approved.
What this means for buyers
A target of 1.5 million houses in five years means about 300,000 a year. The 1.2 million figure over seven years implies about 170,000 a year in the past. So the plan needs a large increase in output. More supply could ease pressure on prices and rents over time. But a target is not delivery, so plan your purchase on what exists today.
Three parts of the plan matter most for households:
- Long-term savings and payment. The government plans a system where citizens save from their income and then pay for a home over a long period. Watch for the rules on eligibility, down payments and prices.
- A rental option. For people who cannot afford to buy, the plan promises a rental alternative. Rent levels and eligibility are not yet public.
- Rural housing. The drive also covers rural areas, not only cities.
For Addis Ababa buyers, the delivery channels are the key question. Private developers and public-private partnerships will carry a large share. Homes from these channels may sell at prices closer to the market than the old subsidised condominium prices.
What this means for the building sector
The Prime Minister said factories for construction inputs have started production. He also said new construction technologies, including 3D technology, are coming into the country. If local input supply grows, building costs could become more stable. That would help both developers and people who build their own homes.
Our condominium guide explains how the existing savings schemes work. Read Addis Fortune's view on why the old scheme reached a tenth of demand. For financing options, see our mortgage guide, and for input costs see our guide to construction material prices in Ethiopia.