In recent years, the role of government in improving the urban environment across Ethiopia has been both visible and significant. Large-scale corridor development projects, city renewal initiatives, expanded public spaces, and infrastructure upgrades are elevating the standard of Ethiopian cities to a level not seen before. These efforts are not only improving mobility and service delivery for citizens, but also reshaping how cities look, feel, and function.
This progress deserves recognition. Creating cleaner, better-planned, and more livable cities is not easy, and the government’s leadership has been central in setting direction, mobilizing resources, and maintaining momentum. The changes underway in Addis Ababa and other cities have laid a strong foundation for the next phase of development.
The question, from my perspective, is how Ethiopia can build on this foundation to generate sustainable economic returns.
One area that stands out is real estate. Urban transformation has already improved the physical environment. With the right approach, real estate development could convert these improvements into long-term capital inflows, employment opportunities, and foreign exchange earnings.
Looking at Dubai’s experience helps put this opportunity into context. Over the past decade, Dubai has turned real estate into a major economic driver by attracting billions of dollars in annual investment. In recent years, the city has received around 10 to 15 billion dollars each year in foreign direct investment, with real estate playing a central role. In 2024 alone, property transactions exceeded 200 billion dollars. These numbers reflect more than construction activity; they reflect confidence, policy clarity, and long-term investor commitment.
Ethiopia does not need to replicate Dubai’s model, but it can learn from its scale. If Ethiopia were to attract even 10 percent of the real estate-related capital that flows into Dubai annually, this could mean roughly 1 to 1.5 billion dollars a year. At 20 percent, the figure could reach 2 to 3 billion dollars. For Ethiopia’s economy, these amounts would be transformative, especially in terms of foreign exchange availability.
Addis Ababa, in particular, has a unique advantage. As the seat of the African Union, it already carries symbolic and political weight. The government’s ongoing efforts to modernize the city create an opportunity to position Addis Ababa not only as Africa’s diplomatic capital, but also as a place where Africans feel welcome to live, invest, and build long-term ties.
The government’s current urban reforms show that bold action is possible. Extending that reform mindset to the real estate sector could open a new chapter of growth, while still protecting citizens’ interests. Affordability, transparency, and orderly urban planning must remain central, but they should go hand in hand with openness to long-term investment.
Ethiopia’s transformation so far has been driven by vision and state leadership. By building on the improved urban environment that is already taking shape, the real estate sector could become a powerful complement to existing development efforts and help carry Ethiopia’s cities, and its economy, to a new level.
