News
Real estate investment, capital markets and REITs in Ethiopia.
Other topics:MarketLaw and policyMortgage and financeDevelopersHousing programsTaxLand
· LEX Africa
Directive No. 1147/2026 turns the foreign residential property regime of Proclamation No. 1388/2025 into a working procedure. A foreign national first needs a permit from the Ministry of Urban and Infrastructure. Minimum capital for one house is USD 150,000 in Addis Ababa and Sheger City, USD 120,000 in most other regions and Dire Dawa, and USD 100,000 in Afar, Benishangul-Gumuz and Gambella. The funds go into a blocked account, and a foreign national may acquire only one residential house.
· The Africanvestor
Ethiopia reformed its foreign property ownership regulations in 2025, shifting from highly restrictive rules to a regulated residential market. Foreign nationals can now legally purchase residential homes such as apartments, villas, and townhouses in eligible urban projects, provided they meet a USD 150,000 minimum investment threshold and obtain Ministry approval. Foreign buyers acquire only the residential structure itself, as the underlying land remains under Ethiopia's leasehold system rather than freehold ownership.
· Addis Fortune
Harvest Circle Inc., a U.S.-based group, plans to launch the first annual U.S.-Ethiopia Real Estate and Construction Expo in July 2026. The expo aims to connect developers, builders, banks, insurers, property managers and investors from both countries. Organizers say it will promote private sector-led urban development, encourage diaspora investment and widen market access for Ethiopian firms.
· Capital Ethiopia
In this interview on the sidelines of the Africa CEO Forum in Kigali, Rwanda, Hana Tehelku, Director General of the Ethiopian Capital Market Authority (ECMA), discusses the steps Ethiopia is taking to build a stronger capital market. The conversation covers the regulator's plans to deepen the market, including through collective investment vehicles such as real estate investment trusts and improved investor protection.
· Addis Fortune
Ethiopia's financial-sector assets reached 5.6 trillion Br by June 2025, a 40 percent increase from the previous year and representing 37.2 percent of GDP, yet the challenge is not a lack of capital but the narrow channels through which it moves. A newly drafted masterplan reveals a system heavily dependent on commercial banks and government securities. Per ECMA senior advisor Assefa Sumoro, planned real estate investment trusts (REITs) would package underlying assets, including large real-estate developments, into tradable units for collective investment schemes.
· Capital Ethiopia
Ethiopia is currently hosting the inaugural Addis Africa Real Estate Exhibition, marking the first East African regional conference of its kind. Opened this Thursday, the dual-purpose program aims to harmonize policy frameworks across the Horn of Africa while positioning Addis Ababa as a premier continental hub for real estate investment.
· Ethiopian Capital Market Authority
Ethiopia achieved a significant financial milestone by officially launching trading on the Ethiopian Securities Exchange (ESX), enabling both government securities and equities to trade on a regulated platform for the first time as a cornerstone of the nation's Homegrown Economic Reform Agenda. The Ethiopian Capital Market Authority (ECMA) facilitated the achievement by establishing the necessary legal, institutional, and regulatory framework, creating opportunities for businesses to raise capital and for citizens to participate in the country's economic progress.
· Addis Fortune
Ethiopia’s financial sector is on the brink of a transformative shift as the Ethiopian Securities Exchange (ESX), with FSD Africa and FSD Ethiopia, prepares to launch Real Estate Investment Trusts/Funds (REIT/Fs) and a Commercial Paper (CP) market. This plans to deepen capital markets and open investment opportunities beyond the traditionally informal real estate sector. REIT/Fs, proven in markets like South Africa, Nigeria, and Kenya, will allow ordinary Ethiopians to invest in income-generating properties and earn regular dividends helping to attract foreign capital for infrastructure needs.
· Ethiopian News Agency
Ethiopia's House of People's Representatives approved legislation during its 41st regular session allowing foreign nationals to own residential real estate in the country. The proclamation aims to boost investment flows, revitalize the real estate sector, and generate employment opportunities while protecting national interests and ensuring compliance with Ethiopian law. The body simultaneously approved a revised overseas employment proclamation addressing gaps in existing regulations.
· Birr Metrics
Ethiopia has approved a law granting foreign nationals the right to own immovable residential property, marking a notable shift in its tightly controlled land and investment policy as the government seeks to attract more foreign capital. Passed by the House of People's Representatives on June 24, the new law permits foreigners to purchase homes valued at a minimum of 150,000 US dollars.
· LEX Africa
Ethiopia's Council of Ministers has approved a draft proclamation establishing a legal framework allowing foreign nationals to acquire immovable property under specified conditions, a significant departure from the country's historical restriction limiting property ownership to the state and citizens. The framework permits foreign nationals to acquire residential property through leasehold or outright ownership, provided they meet a minimum investment threshold of USD 150,000 per transaction and comply with safeguards overseen by the Ministry of Urban and Infrastructure.
· The Africanvestor
Are you considering buying real estate in the land of Origins? Are you pondering if it's the right time to buy or if you should consider waiting until next year? Each person has their own stance on market timing. Your Ethiopian acquaintance might suggest that now is a perfect time to invest in property, whereas your spouse, who is originally from Addis Ababa, might have a different view and recommend waiting for more stability.
· Addis Fortune
BGI Ethiopia, the country's major beer producer, is relocating its century-old headquarters from Mexico Square to Sheger City due to city regulations prohibiting factories in central areas. The vacated 30,000-square-meter property, valued at roughly five billion Birr, is being acquired by Purpose Black Ethiopia, a two-year-old company planning a 115-story mixed-use development called Ke'Geberew Tower with an unconventional public financing model offering shareholding packages that include apartment ownership incentives.