Ethiopia’s House of People’s Representatives, the lower chamber of the parliament, on Wednesday approved a law that grants foreign nationals the right to own immovable residential properties.
The House’s Urban, Infrastructure, and Transport Affairs Standing Committee, which presented the legislation, said the law aims at attracting foreign investment in the country’s housing sector.
The standing committee emphasised that the proclamation specifically enables foreigners to acquire ownership of immovable residential structures built on leased land.
The proclamation sets a minimum investment threshold of $150,000 for foreign nationals seeking to own residential property in Ethiopia. The amount was determined based on current real-estate market conditions in the country.
However, some MPs expressed concern that the $150,000 threshold was too low. They warned it could potentially lead to an influx of foreign buyers, driving up demand and prices while also putting pressure on urban infrastructure
Under the previous laws in Ethiopia, foreign nationals were not allowed to own houses in Ethiopia.
It is expected that the new policy would help increase investment flows, stimulate the development of the real estate sector, and create a wide range of job opportunities for the East African country.
According to the Ethiopian government, various efforts have been made to pass the law, which was enriched through resource-raising discussions, particularly in light of the government’s desire to expand investment opportunities.
MG/as/APA