THE ASSESSMENT OF CONSTRUCTION FINANCING IN ADDIS ABABA: WITH EMPHASIS RESIDENTIAL REAL ESTATE DEVELOPMENT

Abstract

The purpose of the study is to assess the construction financing in Addis Ababa with emphasis residential real estate development. In attaining the goal of this research, the methodologies used quantitative and qualitative research approach through literature review data collection, analysis and discussion. The data collection was done through questionnaire and interview .The research methodology incorporate the involvement of different real estate developers .The analyzed data was presented using percentages and frequencies in table form .The result shows that major sources of financing for real estate housing development are equity finance and collection from home buyers. Other sources of financing are not adequately providing funds to home buyers and developers to finance their housing projects. Due to shortage of financing, the real estate developers couldn’t be able to supply housing in sufficient quantity in timely basis as per the requirement. To improve the availability of financing, people with high income level have to be encouraged to save money and buy home from real estate developers. It is also important to nurture equity capital market for better financing options in the long run. To encourage a more diverse and better supply of housing finance, there is a need to create conductive environment for foreign financers.