Commercial Bank of Ethiopia (CBE) has increased the prices of the 972 houses built under the 40/60 housing scheme and transferred to the lottery winners. The price to be increase reaches up to 124,000 Birr. The prices increase is said to be introduced following the interest rate adjustment.

According to Capital, the price increment on 2 bedroom apartments is 91,470 Birr while 3 and 4 bedroom apartments face 110,650 Birr and 124,000 Birr price hike respectively.

Addis Ababa Saving Houses Development Enterprise (ASHDE) had in the past raised the prices for the apartments from 3,200 Birr to 4,918 Birr per square meter. Now CBE has raised the price for the lottery winners. Following this the price of 2 bedroom 40/60 apartments rose to 701,270 Birr while 3 and 4 bedroom apartments are now worth 847,650 Birr and 950,000 Birr respectively.

Commenting on the matter, Belehu Takele, Communication Head of CBE, said the buyers had agreed to pay interest rate when the 40/60 housing scheme registration began.

“It is clearly stated in their bank saving book that the buyers will pay interest rate when they get their homes. The recently transferred houses were scheduled to finish in two years but were completed in four. We make buyers pay only for the two years and the ASHDE will cover for the remaining two years,” Belehu explained.

When asked why buyers were required to pay 7.5 percent interest rate when they have deposited the full payment, the communication head said the following: ‘’The enterprise borrowed money from CBE for the construction of these houses and agreed to pay the money in a time frame of 17 years. It was also agreed on paper that if buyers win the lottery they’ll pay two years interest.”

Source: Capital