Addis Ababa’s rental market has become one of the most active sectors of the city’s real estate industry. The capital’s growing population, rapid urbanization, and strong presence of NGOs, embassies, and international companies have fueled consistent demand for quality housing. Whether you are a local investor, a member of the diaspora, or simply exploring property opportunities, understanding the rental market is key to making a smart investment.
The average rent in Addis Ababa depends on several factors, including location, apartment size, amenities, and whether the property is furnished. A one-bedroom apartment in a central neighborhood typically rents for ETB 40,000–70,000 per month, while two-bedroom units in high-demand areas like Bole go for ETB 90,000–120,000. Three-bedroom apartments and villas can exceed ETB 150,000, especially if they are fully furnished and come with amenities like backup generators, water tanks, and security services. Neighborhoods such as Kazanchis, Sarbet, and Bisrate Gabriel also attract corporate and diplomatic tenants willing to pay a premium for proximity to offices, international schools, and amenities.
From an investment perspective, properties in prime areas offer relatively low vacancy rates, and furnished apartments often achieve higher rental yields (returns as a percentage of property value).
For example:-
- Monthly rent = ETB 60,000.
- Annual rent = ETB 60,000 × 12 = ETB 720,000.
- Purchase price = ETB 12,000,000.
- Gross yield = ETB 720,000 ÷ ETB 12,000,000= = 0.06 = 6%.
To succeed in the Addis rental market, focus on factors that drive tenant demand: proximity to major roads, good infrastructure, water and power reliability, parking, and security. Furnished apartments with modern kitchens, laundry machines, and fast internet attract expats and corporate clients who stay long-term. Investors should also stay informed about local lease regulations and keep flexible rental terms to attract a wider tenant base.
2. What Are the Best Residential Areas in Addis Ababa for Rental Income?
For a full breakdown of rental prices, check our guide on How Much Is Rent in Addis Ababa And if you’re ready to take the next step, browse apartments for rent in Addis Ababa to explore current listings.