The House of Peoples’ Representatives today deliberated on a draft proclamation aimed at regulating how foreign nationals can own immovable property in Ethiopia. The draft, which proposes to ease long-standing restrictions on foreign ownership, was referred to the Standing Committees on Urban Infrastructure and Transport Affairs and Law and Justice for further review.

The draft law would, for the first time, allow foreign citizens to acquire permanent ownership of immovable property under specific conditions. It sets a minimum financial threshold, requiring foreign buyers to invest at least USD 150,000 either for the full value of a leasehold and residential construction or for direct property purchase.

During the session, some council members expressed concerns about the timing and potential consequences of the proposed law. One member criticized the move, arguing that it could worsen the already severe housing crisis by limiting access for local residents and inflating property prices. The member also warned that, based on the experience of countries formerly under colonial rule, such a policy could risk the displacement of Ethiopian citizens from central areas in favor of wealthier foreign buyers.

Government spokesperson Tesfaye Beljige defended the draft, stating that it does not infringe upon the property rights of Ethiopian citizens. He emphasized that the measure is part of broader efforts to attract foreign capital and increase investor confidence in Ethiopia’s real estate sector.

Lawmakers also raised questions regarding how long a foreigner must reside in Ethiopia before becoming eligible for property ownership and suggested amendments to some of the draft’s provisions.

Source: Sheger FM 102.1