At the third round land lease auction the Addis Ababa City Administration managed to collect over 176 million birr from 58 plots located on the suburbs of the city.
The plots attracted high prices from bidders for residential units at this auction, which is the third one after the introduction of the new lease tariff set by the city administration.
A 173 square meter plot for residence around Ayat Real Estate area fetched a staggering 12,875 birr per square meter while another 175 meter square plot fetched 11,624 birr per square meter in the same area.
At this auction opened last week, most of the plots for residential units in Bole sub city fetched over 9,000 birr per square meter. The lowest price offered in this sub city is 8,195 birr per square meter for a 175 meter square plot of land.
Back in 2006, a plot of land for residential unit around Ayat Real Estate area fetched a maximum of 3,125 birr per square meter. This amount at the time had shocked citizens as it represented almost double the price offered at the auction held only a year ago, in 2005. Meanwhile, in the latest land lease tender, the winners at Kolfe Keranio Sub city offered relatively lower prices as compared to offers made in Bole Sub city.
In this Kolfe Keranio Sub city, the City put up 26 plots for multi-purpose buildings for which offers varied from the lowest price of 3,553 birr to the highest 11,540 birr per square metre. The Addis Ababa City Administration recently introduced a new floor price for plots’ lease in the city revising the existing rate according to current market price. The new rates are used as a benchmark for the plots that are auctioned by the city government or transferred under the new “Urban Lands Lease Holding Proclamation.”
The new prices range from 1,686 birr per square meter designated as central market places to 191 birr for areas that are grouped as expansion places in the city.
The new regulation classified the city into three zones. The first Zone is Central Market District Zone, which is classified in five sets, the first level plot to have a floor price of 1,686 birr per square meter. The second level is set to be 1,535 birr per square meter, 1,323 birr per square meter for a third level plot, 1,085 birr per square meter for a fourth level plot and 894 birr for the fifth level plot.
In related development the City administration announced registration dates for the newly launched housing schemes know as 40/60.
The implementation of the new housing development scheme was expected at the beginning of the GTP period in 2010. In July 2012, the city had promised that registration under the new scheme, which will address the needs of both the lower and middle class population, will begin shortly. However, after eleven months, the registration process has yet to start. On several occasions, the city administration explained it was working on the details of the registration. But at the July 2012 press conference that was convened by Mekuria Haile, Minister of Urban Development and Construction, Kuma Demeksa, Mayor of Addis Ababa and Abay Haile, vice president of the Commercial Bank of Ethiopia (CBE), the officials had asserted that they had completed the work of finalizing all the details for the commencement of the registration, which they then declared would begin within few weeks.