July 19, 2024

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Addis Ababa prices

Addis Ababa Again Revises Houses Sale Price

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Addis Ababa government has again revised houses sale price. Around 34% price reduction has been made under the new guidelines.

Addis Ababa city administration last year in June revised house sale price. The directive has been revised again.

According to the new guidelines that were distributed yesterday, an average of 34% has been reduced on the square meter price for the sale of condominiums and apartments. A significant reduction has also been made in the calculation of the sale of apartments and condominiums.

The manual prepared by the joint study conducted by the City’s Land Development and Management Office and the Land Tenure Registration and Information Agency has been consulted to reduce the price of house sale income.

According to the Director General of Addis Ababa City Administration Land Tenure Registration and Information Agency, Gfawson Desisa Firma, in the instructions distributed to all sub-cities, in the previous practice, for example, the price of an apartment house sold in Level One areas was 132,200 Birr per square meter, similarly, the sale of condominium houses in Level One areas the price was fixed at 72,300 Birr per square meter, and this fixed price has been reduced by 34% in the new manual.

It is said that the city administration was forced to issue a new manual on home sales, because the reality on the ground during the transaction and the sales contract offered are very different.

Based on the contract, 15% of the capital gains tax, 15% of VAT, 2% of stamp duty, 4% of Ashura, 10-35% of profit depending on the income taxed on the taxed income headings are imposed.

He observed that underestimating, delaying name transfer, and not notifying the transaction without requesting name transfer service in the village contract, even though the house has been traded several times are some problems being faced.

The city administration has adjusted the procedure – according to the level of the location – the price that a property can be sold for per square meter.

According to the new formula, the amount that the buyer and seller of the house offer in the contract will be accepted if it is more than the set square meter price. If it is less, it will be treated only with the square meter price offered by the administration. 

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