From Condos to Modern Apartments: How Housing Is Evolving in Addis Ababa

Addis Ababa’s skyline is rapidly evolving and so are the housing needs of its residents. In the early 2000s, the Ethiopian government launched the Integrated Housing Development Program (IHDP) to address a growing housing shortage. Since 2005, the program has delivered over 400,000 condominium units (Habitat Ethiopia), using subsidized land and low-interest loans to help thousands own a house in Ethiopia.

This initiative improved living standards for many—giving families access to proper kitchens, sanitation, and homeownership. But despite its success, supply still falls short. According to the World Bank, Addis Ababa needs approximately 471,000 new homes annually through 2025 to meet its booming population growth. Link

Rising Demand, Limited Supply

Today, Addis Ababa’s housing market faces unprecedented demand. As more rural migrants and a growing middle class move to the capital, the shortage of homes has turned the market into a seller’s stronghold. While new condominium and private housing projects continue, affordable options remain limited.

Private landlords now provide nearly 75% of all rental properties, and renters often pay over half of their income on housing. In high-demand neighborhoods such as Bole, Kazanchis, and Sarbet (home to many diplomats and foreign workers), average 1-bedroom apartments rent for 55,000 to 70,000 ETB/month, with some dollar-converted leases reaching up to 125,000 ETB.

Quick Facts

• New housing needed annually: 471,000
• Projected urban population by 2037: 42.3 million
• Average 1-BR apartment rent: 55,000–70,000 ETB (ranges up to 125,000)
• Over 60% of tenants spend more than 50% of income on rent

The Growing Demand for Quality Apartments

As affordability, location, and lifestyle become top priorities for homebuyers, the demand for well-designed, affordable apartments in Ethiopia continues to grow. Buyers today are looking for:

Affordability: Lower overall cost of ownership or rent

Convenience: Fully or semi-finished apartments that are ready to move in

Customization: Semi-finished units allow you to personalize your space

Location: Easy access to roads, commercial centers, and schools

Community: Safe, connected neighborhoods with long-term value

How Temer Properties is Leading the Way

At Temer Properties, we recognize this shift and are actively delivering the kinds of homes people need. We offer a range of finished and semi-finished apartments across Addis Ababa’s fastest-growing districts, including:

Sarbet: Ideal for diplomats and professionals

Feresbet & Garment: Up-and-coming areas with strong investment potential

Ayat: A vibrant residential zone perfect for families

Whether you’re looking to own a house in Ethiopia, invest in apartments in Ethiopia, or explore commercial shops in Ethiopia, we provide reliable, affordable solutions backed by quality construction and a customer-first approach.

Looking for trusted real estate in Addis Ababa?

Temer Properties offers modern, well-located, and customizable apartments to help you live or invest with confidence. Explore our listings and find your future home today.