Condominiums in Addis Ababa: A Guide to the Government Housing Program

Condominiums are the main form of government housing in Addis Ababa. The city builds apartment blocks and sells the units to registered residents at a price below the market. Many families buy a condominium as their first home. Others buy or rent one on the open market. This guide explains how the program works, what units cost, and what to check before you buy.

How the program started

The city started its condominium housing program in 2005. The aim was to give low and middle income residents a path to own a home. In June 2013, the government opened registration for three savings schemes: 10/90, 20/80 and 40/60. Each scheme has a different down payment and a different target group.

The three schemes

The numbers in each name show the split between the down payment and the loan.

Registered residents save money each month in a bank account. When the city finishes a block, it holds a lottery. Winners pay the down payment from their savings and repay the rest as a bank loan over many years. Under the 40/60 scheme, applicants save through the Commercial Bank of Ethiopia.

You can only register for one scheme. You must be a resident of Addis Ababa and you must not already own a house in the city. Check the current rules with the Addis Ababa housing agency, because they change between rounds.

Lottery prices

The city sets the price per square metre for each lottery round. In the 14th round in 2022, 20/80 units cost Br 7,997 per square metre, a 77 percent rise on the round before. The price of 40/60 units rose 61 percent compared to the round before.

These prices are far below the market. The Reporter puts the market price of condominiums above Br 30,000 per square metre. This gap is why demand for the lottery is so high and why winners often sell or rent out their units.

We could not confirm a lottery round in 2025 or 2026. Ask the housing agency or your bank branch for the date of the next round.

Buying a condominium on the market

Most people who want a condominium now do not wait for the lottery. They buy from a winner on the open market. This is faster, but it costs much more and it has legal risk. Large condominium sites include Summit, Bole Arabsa and Bole Bulbula in the east, and Jemo in the south-west.

Resale rules

Reports describe a rule that bans the sale of a condominium for 5 years after handover. We could not confirm that this rule is still in force or how it applies today. Before you buy, ask the housing agency whether the unit can legally transfer to you.

If the owner cannot legally transfer the title yet, some sellers offer a power of attorney or a private agreement instead. This puts you at risk. If the seller dies, changes their mind, or has debts, you may not get the title. Get advice from a lawyer before you pay.

What to check

1. The title or allocation papers. Ask for the original documents from the housing agency and check that the name matches the seller's ID.
2. The loan balance. Most units still carry a bank loan. Ask the bank for the remaining balance. Agree in writing who pays it.
3. The transfer rules. Confirm with the housing agency that a transfer is allowed and what fees apply.
4. The site. Visit the block. Check water supply, power, roads, transport and the state of shared areas.
5. Disputes. Ask whether the site is part of any court case or government notice. See the section on known disputes below.

Read our guide on how to buy a house in Addis Ababa for the full buying process, and our guide to property tax and fees in Ethiopia for transfer costs.

Known disputes and problems

Koye Feche

Koye Feche is one of the largest condominium sites, with over 7,000 units. In March 2019, the city's handover of units there led to protests in Oromia and a dispute over the boundary between the city and the region. The area is now part of Sheger City in Oromia. Buyers at sites like this should check which authority now issues and transfers title.

Suspended title transfers for 40/60 units

In 2019, the Federal High Court suspended the title transfer of more than 18,000 40/60 units. Buyers who had paid in full brought the case to challenge the lottery. If you plan to buy a 40/60 unit, ask the housing agency whether the unit is affected and whether the title can now transfer.

Move in or lose the unit

In September 2024, the city housing corporation told owners of empty 40/60 units to move in by 9 November 2024 or lose their sales contracts. Owners said many buildings still lacked water, power and finished roads. This shows that the city treats condominiums as homes for residents, not only as an investment. If you buy a unit to rent out, check the current rules on occupancy first.

Living in a condominium

Many condominium blocks have no lift. Ask which floor the unit is on, because the top floors are harder to reach and water pressure there can be low.

Owners share the cost of shared areas, such as stairs, water pumps and security. Most sites have an owners' association that collects a monthly fee. Ask the association how much the fee is and whether the seller has paid it.

Many units are sold as a bare shell with a basic finish. New owners often spend extra on floors, kitchens, doors and paint. Add this cost to your budget if the unit is not finished.

Costs to plan for

• The price. On the open market, compare the price per square metre with other units on the same site.
• The loan balance. If you take over the seller's loan, you need the bank's approval.
• Transfer fees and taxes. These depend on the value and the type of transfer.
• Broker fees. These are customary and negotiable.
• Finishing work. Budget for any work the unit needs before you move in.
• Association fees. Ask for the monthly fee and any unpaid amount.

Renting a condominium

Many owners rent out their units. Condominium rents are usually lower than rents for private apartments in the same area. The units are often smaller and the buildings have fewer services, such as lifts or backup power. Proclamation 1320/2024 and its directive apply to these leases. Read our guide to renting an apartment in Addis Ababa for the rules on advance rent, rent increases and lease registration.

Condominiums compared to private apartments

A condominium is often the most affordable way to own a home in Addis Ababa. A private apartment gives better quality and more services, at a higher price. Read our guide to real estate developers in Ethiopia to compare.

Who should consider a condominium

A condominium suits you if you want to own a home on a limited budget and you accept a basic standard. It also suits investors who want a lower entry price for a rental unit, if the rules on transfer and occupancy allow it.

A condominium is a poor fit if you need a lift, private parking or a large garden. It is also a poor fit if you cannot accept title risk. In that case, a finished private apartment with a clear title may be the safer choice.

Financing

Lottery winners repay through the bank that holds their savings. If you buy on the open market, you usually need to pay in cash or take over the seller's loan with the bank's approval. Some banks offer home loans. Read our guide to mortgages in Ethiopia.

Find a condominium

Browse current listings to see asking prices and rents.

• Condominiums for sale in Addis Ababa
• Condominiums for rent in Addis Ababa