Ethiopia’s new elite spur housing boom
Over the past decade, this Horn of Africa nation has seen an annual growth rate of nearly 10%
White fences and manicured lawns surround the villas of an elegant housing estate in Ethiopia, a potent symbol of the emerging elite in a country better known for drought and famine.
Just 10 years ago, the affluent suburb of Yerrer View was little more than fields.
Today, imposing villas with pillars stand behind neatly-trimmed oleander hedges.
A comfortable commuting distance of 20km from the capital Addis Ababa, the 600-hectare estate has tapped into a growing taste for high-end luxury among wealthy Ethiopians, who are looking for a home which reflects their success in business.
Over the past decade, this Horn of Africa nation has seen an annual growth rate of nearly 10 per cent, World Bank figures show, due to a boom in construction, manufacturing, trade and agriculture. For those in Africa’s second most populous country who are enjoying that growth, the estate symbolises much more than a home.
“We are selling a lifestyle more than just housing,” says Haile Mesele, a civil engineer who heads Country Club Developers, the property firm behind the development. “We don’t do any advertising. We prefer that the residents themselves spread the news, and in a way, chose their own neighbours,” he said.
According to a recent study by New World Wealth (NWW), a South Africa-based market research consultancy, there are now 2,700 millionaires in Ethiopia, reflecting an increase of 108 per cent between 2007 and 2013 — the fastest growth rate in Africa.
“There is a demand for luxury real estate,” said Wunmi Os-holake, who runs the Ethiopian branch of online real estate platform Lamudi, which focuses on emerging markets, with customers eyeing property costing over $330,000 (Dh1.1 million).
The price, she adds, has no upper limit.
And the luxury boom is not just in the suburbs. In the centre of Addis Ababa, the bustling Ka-zanchis business district is also undergoing major renovations.
Eighteen months ago, May Real Estate Development began a new residential development called the Addis Gojo project, which incorporates 113 apartments in three 10-storey towers located near several embassies.
“For those working for the UN or diplomats, it is very central. The district is a new sort of Manhattan,” says project manager Bitania Ephfrem.