Ethiopia is taking new steps to regulate foreign ownership in its real estate sector with a draft law that sets stricter conditions for international investors.
The draft proclamation, submitted to the House of People’s Representatives on 12 May 2017 (E.C.), mandates that foreign nationals or foreign-owned businesses must invest a minimum of $150,000 USD to purchase property or engage in residential construction.
In a move designed to protect Ethiopia’s financial sector, the legislation also prohibits foreign buyers from accessing loans or raising capital through local banks to finance real estate acquisitions.
Under the proposed law, individuals are limited to owning a maximum of five residential properties, with outright bans on foreign ownership in government-subsidized communal housing. However, developments built through public-private partnerships or profit-driven housing programs remain open to foreign buyers.
Officials say the law aims to attract foreign investment while safeguarding affordable housing and local financial resources. If passed, the legislation could reshape Ethiopia’s urban housing market and influence future real estate trends across the country.