The Addis Ababa real estate market has experienced remarkable growth in 2025, with premium residential and commercial property values increasing by an average of 20% year-over-year, according to a new market report.
The report, published by Ethiopia Property Research, highlights the Bole, Kazanchis, and CMC areas as the hottest submarkets, driven by new infrastructure developments, growing expatriate demand, and increasing interest from diaspora investors.
Commercial real estate has been particularly strong, with Grade A office space commanding rents of $25-35 per square meter monthly, approaching levels seen in Nairobi and Dar es Salaam. The completion of several new mixed-use developments has expanded the supply of premium space.
The residential market has also benefited from government programs to expand housing supply, with several large-scale housing projects completed or underway. However, affordability remains a challenge for middle-income earners.
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