ASSESMENT OF REAL-ESTATE PERFORMANCE IN ADDIS ABABA

Abstract

This study aims to assess the performance of the real estate sector in Addis Ababa, Ethiopia, considering key dependent and independent variables. As the capital city experiences rapid population growth and urbanization, there is an escalating demand for housing and commercial spaces, making the real estate sector pivotal for economic growth and urban development. Understanding real estate market performance is crucial for informed decision-making by policymakers, investors, and stakeholders. The dependent variable, Real Estate Performance, is the central focus, evaluated using a mixed-method research approach that incorporates qualitative and quantitative data collection methods. Primary data is gathered through interviews and surveys involving real estate professionals, developers, government officials, and potential buyers. Secondary data is sourced from relevant reports, publications, and databases. Property Market Dynamics are analyzed to gauge fluctuations in property prices, rental yields, vacancy rates, and market liquidity. Infrastructure and Urban Development significantly influence real estate performance by shaping accessibility, connectivity, and livability. The Regulatory Framework and Policies, including land use regulations, property taxes, and investment incentives, have a substantial impact on market stability and investor confidence. Moreover, dependent variables play a critical role in determining real estate demand in the city. On the other hand, Independent Variables also influence overall real estate performance. Government Policies, at both national and local levels, impact real estate activities through housing subsidies, land allocation, and urban planning initiatives. Market Demand, driven by population growth and consumer preferences, directly affects sales and occupancy rates of real estate projects. Additionally, Market Supply, referring to the volume and type of properties available, impacts the equilibrium between demand and supply. In conclusion, this research contributes to a comprehensive understanding of the real estate sector in Addis Ababa and its determinants. The findings will provide valuable insights for policymakers, developers, investors, and other stakeholders, enabling them to make informed decisions and formulate effective strategies for sustainable and resilient real estate development in the city.