The World Bank has expressed interest in providing financial support for Ethiopia's real estate sector.
On another front, it has been announced that a mediation and arbitration task force is being established to resolve disputes that arise between real estate developers and homeowners through negotiation.
It has been 30 years since real estate development began in Ethiopia. During this time, it is noteworthy that many citizens have become homeowners, and the living standards of many have changed.
However, the sector also faces a number of challenges. One issue raised is that the houses built by real estate developers are not targeted at low and middle-income earners; they are said to be expensive. On various occasions, the question has been raised that the price of the houses should be made affordable for these segments of the society.
The Ethiopian Real Estate Developers Association, which was established last Miyazya (April), disagrees with the notion that the houses are expensive. Mr. Kedir Seid, the General Secretary of the association, stated that the solution for enabling low and middle-income earners to own real estate houses is to create conditions for them to access low-interest, long-term loans.
Another complaint lodged against real estate developers is that they fail to deliver houses on time and with the promised quality. Due to this, disagreements often arise between the developer and the client, and sometimes the matter ends up in court.
General Secretary Mr. Kedir, who acknowledges that these problems occur, informed us that the association is establishing a task force that will function as a form of mediation and arbitration.
Mr. Kedir, who informed us that the association recently held discussions with representatives from the World Bank, said, "During the discussion, we understood that the Bank wants to support Ethiopia's real estate sector financially."
We have learned that the Ethiopian Real Estate Developers Association currently has 57 members.
