Addis Ababa raises civil service housing cost to 50,000 birr per square metre
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Addis Ababa's housing bureau lifted the baseline construction cost for government employees' housing cooperatives from 35,000 to 50,000 birr per square metre, prompting several cooperatives to halt work.
The Addis Ababa City Administration's Housing Development and Administration Bureau has raised the baseline construction cost for government employees' housing cooperatives from 35,000 birr to 50,000 birr per square metre, according to an official letter reviewed by Borkena.
The directive, signed by Bureau Deputy Head Dr. Mekonen Tsebte Chikol, retroactively adjusts initial December 2024 pricing estimates following an updated municipal rate schedule released in September 2026. The revision affects thousands of public school teachers and healthcare workers who had previously secured municipal land grants under the city's cooperative housing initiative.
Under the initial framework launched in Lemi Kura sub-city in February 2026, the city administration provided free land to 6,194 teachers organised into 57 distinct cooperatives. Members paid a 25 per cent down payment based on the initial 35,000 birr rate, with bank loans arranged to cover the remaining 75 per cent balance.
Teacher cooperative committees told the Ethiopian outlet Wazema that the sudden price increase exceeds their financial capacity. Many members financed their initial down payments through personal loans and family assistance, expecting fixed delivery costs upon completing the required deposit.
Following a cost study by Addis Ababa Science and Technology University indicating that regional building expenses have reached between 50,000 and 82,000 birr per square metre, several members requested full refunds. Cooperative representatives reported that members quoted upper-tier construction rates were verbally told during internal meetings that down payments are non-refundable.
In response to the adjusted rates, several cooperatives halted work at the foundation stage, while others refused to begin construction until municipal authorities finalise baseline costs. A senior city administration official said the initial 35,000 birr rate was a low baseline estimate rather than a fixed final cost, and that the administration is reviewing quarterly building material indices to prevent contractor abandonment.