During the latest land auctions, the Addis Abeba Land Bank & Transfer Agency made as much as 26,202 Br a square metre. The auction, which covered various districts, took place on July 24, 2013, at the Addis Abeba Theatre & Cultural Hall.

It is the fourth of the auctions the office floated on July 9, 2013, after the revised land proclamation, in November 2012.

The office has availed a total of 40,000sqm of land on 95 plots. These have been in Akaki Kaliti, Kirkos, Yeka, Kolfe Keranio, Bole and Arada districts.

However, out of these, the opening of the auction for the 9,776sqm of land on 29 plots in Akaki Kaliti, the largest of all the districts, was extended indefinitely. This was done because of an appeal by investors who had asked to lease the plots before the auction was floated, according to Nasre Yimam, office coordinator of the auction committee, which is made up of 22 people.

"It will be opened or cancelled after an administrative review," Nasre said.

These plots, which had a floor price of 217 Br, were intended for G+4 buildings.

The highest price offered, 26,202 Br a square metre, was for a second-grade 656sqm plot of land at Wollo Sefer, in Kirkos District. Its floor price was 809 Br. The winner for this plot, GS Trading plc, will pay a total of 17,188,512 Br, with 20pc upfront, on a 60-year lease. Though a number of companies participated in the auction and offered bigger prices, offers from individuals were also competitive.

There were 13 plots, with a total area of 8,678sqm, auctioned in Kirkos District, attracting 218 bidders. Seven of these were disqualified on technical grounds. Such issues included not supplying documents, such as the receipt for the purchase of the ID document, or a document showing their intention for the plot they were bidding on. Four of the seven had offered over 23,000 Br.

"The offers will be higher next time," said a bidder, who requested anonymity.

He won a plot in Kirkos, though missed out on one in Arada District.

The offer trend in the city was swiftly decreasing. It has shifted down from the least price of 6,000 Br and the highest of 14,000 Br offered in the first round, to the 13,110 Br highest and 4,000 Br least offered in the third round. However, the number of bidders for the 141 plots in the third round were in their thousands.

"The lease prices are speculative and do not show the real price of land in the city. Losing hope in the 40/60 housing scheme has forced people to turn this way. It also seems that money came from passing businesses, since the number of bidders has decreased," said an expert, who has been in the real estate industry for the past 10 years and also requested anonymity.

He believes that the maximum lease price for a square metre of land in the city should not exceed 15,000 Br.

"It must be decreased for the next round," he added.

The least price offered for the plots in Kirkos was 710 Br, which was disqualified, since it is less than the floor price. All plots in the district were for multiple purposes. Most were G +2 to G+ 4 buildings. This was except for a plot of 1,823sqm set aside for business, which will have G+7 to G+ 12 structures. It was won by AMT Importer Plc, with 22,360 Br.

Arada Disitrict had a total of 2,686sqm of land on five plots, the least among the districts. These offers attracted 48 bidders. Two of the plots, however, were announced out of the auction because they had less than three bidders. The remaining three plots had winning offers of 10,420 Br, 20,115 Br and 21,050 Br a square metre, respectively. These plots were grade one and two, with a floor price of 1,535 Br.

The 6,098sqm of land on 13 plots in Kolfe Keranyo District were able to fetch a maximum of 8,100 Br winning price, with 48 bidders, while the least winning price was 2,115 Br. The land was for multiple purposes, with a 299 Br floor price.

Out of the 8,697sqm of land on 27 plots in Yeka district, 62 pc was availed for the fourth round auction. All were left over as the result of limited bidders. The highest price offered for plots in this district was 8,012 Br. These plots drew 176 bidders, the second largest number, after Kirkos.

The eight plots with a total of 4,044sqm in Bole district fetched 97 bidders. The highest offered for these plots, which had a floor price of 191 Br, was 8,000 Br.

All the plots have a lease period of 60 years, with payment to be completed in 30 years.