After many years of back and forth Ethiopia has now finally decided to allow foreigners to buy immovable assets here. Accordingly, foreigners who live in Ethiopia for different reasons can buy houses. It is also worth noting that foreign companies are also allowed to invest in real estate.
The two measures have stricken hope that foreigners contribution in the economy will increase. Along with the hopes the government needs also to consider the precautions suggested by experts in the field to prevent the possible escalation of price of houses or buildings there by extracting the necessary economic benefit from the venture.
Among many Ethiopians, housing is a very crucial asset. It is not only an asset given economic importance, but also carries a lot of social values. Building or buying house is a means of security for an individual or a household. It is also an icon of success, social status and the like.
That is why many people rush to possess this valuable asset before anything. Yet, especially these days many people still fail to afford housing due to the expensive prices of houses especially in the most urbanized parts of the country. Despite the challenges, the various cities of the country are witnessing rapid development in the activities of construction, real estate as well as financing and mortgaging activities. There is a need to apply innovative ways to make more urban dwellers own houses at affordable prices.
The government’s measure to allow foreigners to buy immovable assets comes amid such hopes and fears. Hence, the government and real estate developers need to exploit opportunities out of the anticipated huge investment of foreigners in housing to benefit the economy in general as well as the burning needs of the local people for housing.
Foreign investment in immovable assets can directly benefit the economy by creating jobs in construction, real estate and various service sectors.
They often invest in new developments, which can lead to job creation and increased tax revenues for local governments. This influx of capital can be particularly vital during economic downturns, helping to stabilize local economies and encourage recovery.
Moreover, allowing foreigners to buy property can spur the development of local infrastructure such as transportation, hospitals, and schools. This kind of development can create a more attractive environment for everyone, ultimately enhancing the quality of life in the area.
Allowing foreigners to own homes can increase their feeling of security to stay longer contributing their knowledge and financial capacity to the development of the country. This gives relative advantage to the country as a pull factor for foreign investors.
By allowing foreigners to buy assets in Ethiopia the country is doing a big favor not only to proper foreigners, but also the millions of friends of Ethiopia who draw emotional and historical attachment to the country. They have been supporting the country through moral and financial means during times of aggression and natural disaster. Now they can become closer and feel at home by owning residential houses.
In addition to economic benefits, the presence of foreign buyers encourages cultural exchange. When people from different countries invest in real estate, they also bring diverse perspectives and experiences. This multicultural interaction can lead to greater understanding and cooperation between locals and foreigners.
However, it is essential to balance foreign investment with the needs of local residents. Policymakers need to implement regulations that ensure that foreign investment leads to sustainable development without displacing local communities.
THE ETHIOPIAN HERALD THURSDAY 22 MAY 2025
