The Addis Ababa Housing Administration Bureau has officially launched a mandatory residential lease registration program across all sub-cities, capping annual rent increases at 11.5% for the upcoming 2019 Ethiopian budget year. The initiative, which commenced on July 1, 2018 (Ethiopian Calendar), aims to standardize the rental market and curb arbitrary price hikes that have strained city residents.
According to municipal officials, the newly approved 11.5% ceiling is rooted in a scientific study designed to balance tenant affordability with fair returns for property owners. Authorities state that the formalized registry will eliminate illegal leasing practices, protect tenants from sudden evictions, and foster long-term market stability amid broader economic pressures.
While the regulation offers a structured framework for future adjustments, it has elicited mixed reactions from city residents. Many tenants express concern that the measure comes too late, noting that a significant number of landlords pre-emptively implemented steep rent increases in the weeks leading up to the official announcement.
Property owners have also voiced mixed perspectives regarding the new policy. While some acknowledge the need for market regulation, others argue that a rigid percentage cap fails to account for rising maintenance costs, high inflation, and the varying premium values of different neighborhoods across the capital.
The city administration has reiterated that adhering to the registration process is compulsory for all legal leasing transactions moving forward. Officials face the immediate task of monitoring compliance and addressing existing grievances over pre-regulation price spikes to ensure the policy achieves its intended economic balance.
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