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Factors affecting real estate in Addis ababa 

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Real estate represents a significant portion of most people’s wealth.  Private real estate thrives in Ethiopia during the late 1990s and early 2000s especıally ın Addis Ababa. Real Estate in Addis Ababa companıes delivered a large number of modern villas and condominium apartments.


Demographics are the data that describes the look of a population, such as age, race, gender, income, migration patterns, and population growth. Remarkable shifts in the demographics of a nation can have a large impact on real estate trends for several decades.

Interest Rates 

Interest rates also have a major impact when it comes to buying a house. If you’re planning to buy a home with a mortgage it is beneficial to research interest rates. Changes in interest rates can greatly influence a person’s ability to purchase a residential property. That is because the lower interest rates go, the lower the cost to obtain a mortgage to buy a home will be, which creates a higher demand for real estate, which again pushes prices up.

The Economy

Overall Health of the country’s economy affects the value of real estate. This is generally measured by economic indicators such as the GDP, employment data, manufacturing activity, the prices of goods, etc. When the economy is going down, so is real estate. Although you should be aware of the part of the cycle the economy is in, you should also be cognizant of the real estate property’s sensitivity to the economic cycle.

Government Policies/Subsidies

Legislations are also another factor that can have a reasonable impact on property demand and prices. Tax credits, deductions, and subsidies are some of the ways the government can boost demand for real estate for as long as they are in place. Being aware of current government incentives can help you determine changes in supply and demand and identify false trends.

What’s the Best Investment?

The size and scale of the real estate market make it an attractive and preferable market for many investors. Investors can invest directly or indirectly. Investing directly in real estate involves purchasing the residential or commercial property to use as an income-producing property or for resale at a future time. Due to the higher liquidity available in the market, the lower transaction costs, and lower capital requirements, average investors prefer to indirectly invest in real estate which we call to invest over funds.


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