Real Estate Developers in Ethiopia: How to Choose and What the Law Says

Private real estate developers build most new apartments and gated compounds in Addis Ababa. Many buyers pay a developer in stages while the building goes up. This can get you a new home at a lower price than a finished one. It also carries risk if the developer is late or does not finish. This guide covers the law that now controls developers, the main companies in the market, and how to check a developer before you pay.

The developer law: Proclamation 1357/2024

Proclamation 1357/2024 is the main law for real estate development and marketing in Ethiopia. It aims to protect buyers who pay before a home is complete.

Escrow accounts

Under the law, buyer money goes into an escrow account at a bank. The developer does not get the money at once. The bank releases funds in stages, after someone verifies that construction has reached each stage. This lowers the risk that a developer takes buyer money and does not build.

Limits on early sales

AllAfrica reports that the law bars developers from selling homes that are less than 80 percent complete. The same report says a transfer below that level can go ahead if the buyer agrees. Check how this rule applies to the project you want, and whether the developer sold units before the law came into force. Ask the developer to show you how it complies.

What this means for buyers

• Ask which bank holds the escrow account, and confirm it with the bank.
• Ask for the construction stage and the evidence for it.
• Pay only into the escrow account named in your contract, never to a person.
• Keep every receipt and every signed document.

The 2025 market slowdown

The new rules arrived at a hard time. The birr floated in July 2024 and lost much of its value. In a March 2025 report by The Reporter, a developer says that high inflation has sharply increased the cost of building materials. The same report says developers misjudged demand for expensive apartments.

• The Reporter (March 2025) reports that Flintstone Homes cut prices on some homes from about Br 110,000 to about Br 69,000 per square metre. The company says its average cut is about 40 percent.
• The same report says Metropolitan Real Estate had sold only 20 percent of the units it had built.

The weakness started earlier. In February 2024, Addis Fortune reported that home and apartment prices had dropped nearly 15 percent over six months. It said around 300 developers, most of them selling semi-finished homes, faced falling values.

For buyers, a slow market means more room to negotiate. It also means more risk. A developer with weak sales may struggle to finish a project. Check the financial strength of the company, not only the price. Read our guide to house prices in Addis Ababa for current figures.

Main developers in Addis Ababa

The list below covers some of the best known names. It is not a ranking. Claims about units delivered come from the companies themselves unless a source says otherwise. See our full developer directory for more companies.

Eagle Hills (La Gare)

Eagle Hills is a developer based in Abu Dhabi. Its La Gare project sits on about 36 hectares at the historic La Gare railway station site in central Addis Ababa. Eagle Hills announced it in November 2018. The plan includes over 4,000 homes, plus hotels and a mall. The city holds a 27 percent stake in the project.

Noah Real Estate

Noah Real Estate says it has delivered over 9,800 units. It is one of the largest local developers. The Reporter covered complaints from buyers about incomplete homes at its Green Park site. If you consider a Noah project, ask about the delivery schedule and visit finished buildings.

Ayat Real Estate

Ayat Real Estate is one of the oldest private developers in the city. It says it has delivered over 5,000 homes and 1,000 commercial properties. Its name is linked to the Ayat area in the east of Addis Ababa.

Tsehay Real Estate

Tsehay describes itself as the first Chinese real estate developer in Ethiopia. Its Poli Lotus complex in the Ayat and CMC area has 13 residential buildings and over 640 apartments.

Flintstone Homes

Flintstone Homes builds apartments in several parts of the city. In 2025 it made one of the largest price cuts in the market, as described above.

Metropolitan Real Estate

Metropolitan Real Estate builds apartment projects in Addis Ababa. The Reporter reported low sales of its units in early 2025.

Ovid Real Estate

Ovid Real Estate is part of the Ovid Group. The group also launched Ovid Betoch Bank to finance home buyers.

Alsam Real Estate

Alsam inaugurated a project in 2019 and has a third project near Mexico Square.

Sunrise Real Estate

Sunrise Real Estate appears in directory listings with a project in the Summit area. We could not verify further details. Ask the company for its permits and completed projects before you deal with it.

How to check a developer

Use this checklist before you sign anything or pay a deposit.

1. Visit finished projects. Go to buildings the developer has already handed over. Talk to owners about quality and delays.
2. Check the permits. Ask for the land lease documents, the building permit and the approved plans. Check that the plot is in the developer's name.
3. Confirm the escrow account. Under Proclamation 1357/2024, buyer funds go into escrow. Confirm the account with the bank.
4. Read the contract. Check the delivery date, the finish standard, the penalty for late delivery, the payment schedule and what happens if prices change. Some contracts let the developer raise the price when costs rise.
5. Check the unit size. Confirm whether the size includes shared areas. Compare the price per square metre with other projects.
6. Search the news. Look for reports of disputes, delays or court cases. Our news section covers the market.
7. Get legal advice. A lawyer can review the contract before you sign.

Read our guide on how to buy a house in Addis Ababa for the full process.

Warning signs

Walk away or get legal advice if you see any of these signs.

• The developer asks you to pay cash or pay into a personal account.
• The developer cannot name the bank that holds the escrow account.
• The developer cannot show a building permit or the land lease papers.
• The price is far below other projects in the same area, with no clear reason.
• The contract lets the developer change the price, the size or the delivery date at any time.
• The site shows no work for months, or the developer has many buyer complaints.
• The sales team pushes you to sign the same day.

Paying a developer

Most developers sell on a payment plan. You pay a deposit, then pay in stages until handover. Some offer a discount for full payment in cash. A few work with banks on home loans. Read our guide to mortgages in Ethiopia.

Foreign buyers can now buy a house under Proclamation 1388/2025. In Addis Ababa, the minimum price is USD 150,000 per house. Payment must come in foreign currency through an Ethiopian bank, and the buyer cannot use local loans. The foreign owner owns the building, not the land. Read our guide to buying property in Ethiopia as a foreigner.

Off-plan compared to finished homes

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