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A new draft proclamation has been submitted to Ethiopia’s House of People’s Representatives, setting out strict regulations on foreign ownership of real estate and land for residential construction.
The proposed legislation seeks to attract foreign investment while protecting the domestic financial sector. Among its key provisions is a clause prohibiting foreign nationals and foreign-owned entities from borrowing funds or raising capital from Ethiopian financial institutions to purchase property or build homes.
According to the draft, any foreign individual or legal entity wishing to acquire property must invest a minimum of $150,000 USD. Additionally, foreign ownership is capped at five real estate properties per person at any given time.
The bill also bars foreign citizens from owning units in government-subsidized communal housing. However, properties developed through public-private partnerships or similar profit-driven housing schemes are exempt from this restriction.
The proclamation, introduced on May 12, 2017 (Ethiopian calendar), underscores the government’s intent to balance foreign capital inflow with safeguards for the domestic housing and financial markets.
