The House of Peoples’ Representatives has passed a new proclamation permitting foreign nationals to own immovable property in Ethiopia. The decision aims to encourage investment in the country’s real estate sector while safeguarding national interests.

During the parliamentary session, the House Standing Committee on Urban, Infrastructure, and Transport Affairs addressed questions raised by members concerning the scope and implications of the new law. The committee clarified that although foreign citizens can now invest in residential properties, land ownership remains reserved for the government and the Ethiopian people. Foreign investors will not have the right to sell or exchange land itself.

To qualify for home ownership, foreign citizens must invest a minimum of USD 150,000. While some members argued that this amount is relatively low and could encourage an influx of foreigners seeking residency through property ownership, the committee explained that the figure was determined based on the current housing market. The committee also noted that the threshold could be revised upward in the future as market conditions evolve.

Responding to concerns about potential population growth, Committee Chairman Professor Mohamed Abdo clarified that the proclamation only applies to foreign investors and their immediate family members, specifically, spouses and children.

Additionally, the proclamation includes provisions for regional governments to issue guidelines for foreign property investments outside Addis Ababa, ensuring that implementation aligns with local needs and contexts.

Source: Fana BC