Residential Real Estate - Ethiopia

The Residential Real Estate market market in Ethiopia is projected to reach a value of US$1.07tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 6.81%, resulting in a market volume of US$1.49tn by 2029.
In global comparison, China is set to generate the highest value in the Real Estate market, with US$112.9tn in 2024.
The residential real estate market in Ethiopia is experiencing a surge in demand due to increasing urbanization and foreign investment.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Ethiopia is experiencing significant growth and development, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Residential Real Estate market in Ethiopia are shifting towards modern and well-designed properties that offer a range of amenities and facilities. Buyers are increasingly looking for properties that provide a comfortable and convenient lifestyle, with features such as gated communities, landscaped gardens, and recreational facilities. Additionally, there is a growing demand for properties that are located in close proximity to schools, hospitals, and other essential services. Trends in the market indicate a strong demand for affordable housing options, particularly among the middle-income segment of the population. This has led to the development of more affordable housing projects, which are designed to meet the needs of this specific customer segment. Developers are also focusing on providing flexible payment options and financing solutions to attract buyers. Local special circumstances, such as rapid urbanization and population growth, are contributing to the development of the Residential Real Estate market in Ethiopia. As more people move to urban areas in search of better employment opportunities, the demand for housing is increasing. This has led to the expansion of residential developments in major cities, with a focus on providing affordable housing options. Underlying macroeconomic factors, including economic growth, rising disposable incomes, and favorable government policies, are driving the growth of the Residential Real Estate market in Ethiopia. The country has experienced strong economic growth in recent years, which has resulted in an increase in disposable incomes. This, coupled with favorable government policies aimed at promoting the real estate sector, has created a conducive environment for investment in residential properties. In conclusion, the Residential Real Estate market in Ethiopia is growing and developing rapidly, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The demand for modern and well-designed properties, affordable housing options, and convenient locations is shaping the market. With the country's rapid urbanization and population growth, coupled with favorable macroeconomic conditions, the Residential Real Estate market in Ethiopia is expected to continue its positive trajectory in the coming years.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate - Ethiopia

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Living Space

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Contact

Get in touch with us. We are happy to help.

Residential Real Estate - Ethiopia

In-Scope

Out-Of-Scope

Related markets:

Residential Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts