9 December 2012

Ethiopia: Condo Tender Shatters Own Record With 56,000Br a Sqm

Out of the 1,985 housing units built at the Lideta Site currently 150 houses floated for tender.

Condominium shops brought in a record 56,000 Br a square metre offer in a tender floated by the Addis Ababa Houses Development and Administration Agency; the floor price was 6,606Br.

The tender which floated on October 30, 2012, and closed a month later, attracted more than 14,000 bidders, including individuals, banks and insurance companies.

Previously, the highest offer was 15,000 Br for the Jemo site about a year and a half ago, acknowledged Fasil Assefa, Information Technology System Administrator at the Addis Abeba Houses Development Project Bureau.

There are 1,985 housing units at the Lideta Site, but the tender was floated for 150 of them. The closing date was pushed by one week to the end of November due to the high turnout of bidders, according to Anteneh Admasu, general manager of the Agency.

"Business people are beginning to understand the potential that populated condominium areas present," said Anteneh.

The winners of the tender will be announced by the end of December; they will be expected to pay 50pc in advance and sign an agreement with the Commercial Bank of Ethiopia (CBE) to pay the remaining 50pc within five years before they can own the house, says Fasil.

Shops are located on the ground and first floors of 10 seven-storey buildings and on the first floor on 39 four-storey buildings. They range from 20 to 117sqm in area.

Starting as a pilot project in 2003 under the Local area Development Program (LDP), the Lideta housing project is the ninth round in condominium construction for the city administration. The city administration has prepared 45 local area development plans in all 10 districts.

The program is being used to rehabilitate and develop slum areas, to address the housing problem and create job opportunities.

The city has built 80,246 houses since the program came to action, out of which over 600 houses are sold to shop owners. Currently, there are also 95,000 houses under construction, according to Fasil.

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