Private real estate began to thrive in Ethiopia during the late 1990s and early 2000s. In Addis Ababa, spiral of Ethiopia, real estate development is considered as one of the biggest business investments with the transaction of billions of birr in the market. Meanwhile, most real estates in Addis Ababa are not affordable to the majority of the inhabitants of the city. Most real estate developer target Ethiopians in the diaspora.
As Ethiopia is growing indefinitely and the middle-income segments of the society will grow in parallel, the real estate developer who has several other businesses in the country hopes. Addis Ababa is the capital of Africa and people from different African countries are interested in having a second home in Ethiopia for its stability, peace, and good weather. These will create lasting opportunities for the market of real estate developers. As a real estate business owner, an investor should look out of the supply chain system that should be examined point by point. More especially, the trading mechanisms and their predictability should be analyzed. A real estate investment is not a retail business that can get a small return on a small investment. It requires years to build apartments. Critical supply chain trade system analysis along with the predictability of the regulatory framework requires proper attention in this regard.
Ethiopia with a population of 90 million people, with a new rising economy, and a dire shortage of housing, has a huge potential for the real estate business. Enacting the new proclamation and providing additional support like financing, will make the sector one major development of a giant awakening economy in Africa. If people in the real estate industry use the lessons from the past to contribute to alleviating the housing problems of the nation they can change the face of the country’s cities and prosper along the way
