FAQs

Yes! We work with some domestic banks in Ethiopia to get financing for our clients. In order for the banks to extend loans to finance your dream home, you are expected to pay at least 40% of the value of the building to be purchased as equity contribution. The remaining amount can be covered in the form of a loan.  The loan duration is up to ten years and the mode of repayment is based on your cash flow either monthly or quarterly. However, most buyers in Ethiopia pay the whole value of the property they buy in cash at the time of purchase.

In order to own a real estate property in Ethiopia, you have to fulfill at least one of the following criteria.

• You must be engaged in some kind of investment activity in the country aside owning properties.
• You must be engaged in large scale real estate development. For example, a foreigner is not allowed to invest in a hotel business unless it is at least 3 stars.
• Your spouse must be an Ethiopian national. In this case, the title of the property is registered in your Ethiopian spouse’s name.

For rentals, the commission rate ranges between 8 and10% of the first advance payment. Most landlords usually require advance payments to be made for 6 to12 months. For sales, the commission rate is 2% of the selling price. In Ethiopia, both contracting parties are expected to pay commission to the agent.

The biggest cost item is assura, which is 6% of the buying price and it must be paid to the Land Administration Authority office. This is the fee charged for transferring the title deed into your name. You should also expect to pay other small administrative fees at the public notary office and at the Land Administration office, which are insignificant compared the assura and the agent fees.