Mandatory Escrow Account System to Restore Trust in the Real Estate Sector

For years, Ethiopia's real estate sector, a multi-billion birr industry, has struggled with a lack of trust and inadequate legal frameworks. In response, the government is implementing an Escrow Account system aimed at securing home buyers' funds. This initiative is based on the recently ratified Real Estate Development and Immovable Property Marketing and Valuation Proclamation (No. 1357/2024), and seeks to restore trust and protect home buyers from exploitation by developers.