The overall socio-economic development in the country has created ample opportunities for real estate developers to expand their markets, albiet accessibility and affordability remains to be major challegnes.
The government’s supports, latecomer advantages such as gained experience, skilled manpower, local construction materials input as well as the rising housing demand have brought about sizable opportunities for the growth of the real estate sector,” said Gebreyesus Igata, Gift Real Estate Plc Founder and Manager.
A decade back, the government has choosen eleven towns for its vast housing development program. Among these towns, however, only residents of Addis Ababa have been benefiting from the 35 active private develoers operating in the Capital, follwed by Amhara, Tigrai States and Dire Dawa Administration to a limited extent, sources indicate.
The initiative, though not entirely a success, has to some extent reduced the housing problem. Besides, apart from reducing the hosusing problem, the houses constructed by real estate developers are changing the image of Addis Ababa, mainly in the north-eastern outskirt of CMC and Ayat areas.
“Real estate developemnt is among the government’s priorties and aims at meeting nations’ housing demands as well as giving a change for the society modern way of life,” aceunated President Dr. Mulatu Teshome.
Noting the advantages of modern cities to promoting modern way of life, the President said, the real-estates that are operating within the Country, concurent to reducing housing problems, have significant roles in modernizing cities.
“Hence, the government encourages those who aspire to engage in the sector,” the President affirmed.
Ministry of Urban Development and Housing Public Relations Office Deputy Head Ayalnesh Workneh told The Ethiopian Herald among others, Addis Ababa is performing well, having 35 real estate develpers. But all of these could not meet the growing housing demand.
“Real estate is the third, next to the housing projects developing program by the government and enterprize’s housing schemes in meeting the demand. The sector is showing progress but still in its infancy stage and demands more developers to join,” she added.
The Gift Real Estate Plc has recently handedover over 350 villas to beneficeries. Ayalenesh said “Though there are also other developers who are engaged on this same business, the development of houses could not keep up with and meet the ever increasing housing demand in the capital.”
The government is keen as always to support developers through the provision of land, infrustrauctural and related services to the developers, she added.
Regarding the overall status of real estate development nationaly, Ayalenesh said, “Amhara State real estate developers have constructed 863 houses and handed over to benficeries,”
In Tigrai State, five real estate developers are construcing houses. In Dire Dawa City Government, three developers have been, constructing over 1000 houses, and transfered some to beneficieris.
Southern Nations, Nationalities and Peoples State, Oromia and the remaining towns as well have finalized preparation to let developers contruct houses, she furthers said.
Gift Real Estate Plc Founder and Manager Gebreyes Igeta said the real estate sector has yet not developed as expected. The main reason, according to him, is associated with the fact that real estate development is a recent phenomenon in Ethiopia. Besides, lack of experience, knowledge and skill gaps, shortage of input and advanced technologies are also major challenges of the sector. However, currently the sector is progressing better now than before.
According to Gebreyesus the real estate sector will flourish in the coming few years. “However, to this effect, government should encourage joint housing development programs and review its policy accordingly,” he recommended.
Ayalnesh shares Gebreyesus’ recommendation in the importance of reviewing the housing development policy. “A detailed review of policy amid at expanding the sector has been forwarded for the Council of Ministers. Once it is approved by Parliament and executed, it would solve the bottlenecks in the sector.”
The real estate sector is creating massive jobs for thousands of citizens.
Some sort of corporate treatment mechanism should be designed in the service delivery to avoid the unnecessary bureaucratic process in woredas and sub-city administarion levels, Gebreyesus added.
In order to meet the ever increasing housing demand of the public, the government should expand its housing scheme throughout the country through supporting enterprises that are engaged in the development of housing.
Encouraging the real estate developers to grow in number and skill, design a mechanism that addresses the shortage of manpower and related inputs through linking with the local market is crucial to expand the sector, according to Gebreyesus.