(3 Minutes Read)
The Ethiopian Ministry of Urban and Infrastructure Development is set to establish national standards for the registration and licensing of real estate developers, agents, liaison brokers, and property valuators. Its officials will also be in charge of monitoring compliance and enforcing penalties, including the revocation of licenses after the standards are set.
Nearly a decade after it was first proposed, Parliament has ratified the country’s first Real Estate Development Proclamation, setting educational and ethical standards for independent brokers and property managers.
The Ministry of Urban and Infrastructure Development is set to establish national standards for the registration and licensing of real estate developers, agents, liaison brokers, and property valuators. Its officials will also be in charge of monitoring compliance and enforcing penalties, including the revocation of licenses after the standards are set.
The absence of clear laws has led to disputes and widespread issues in the real estate industry, including disputes over property rights, inconsistent valuation practices, and inadequate consumer protection. The experts behind the new bill expect it to provide a robust foundation for regulating these critical areas, ensuring that both developers and consumers are better protected in their dealings.
The legislation will enable property owners to comprehend the true value of their properties, which will make it easier for them to participate in capital markets. Officials also hope to see the bill promote urban growth through the standard application of valuation and property tax estimates.
The bill permits both local and foreign investors to participate in the Ethiopian real estate business. To qualify, they must obtain a real estate developer’s qualification license from the federal, state, or city-level urban and infrastructure authority. Additionally, both local and foreign investors are required to develop a minimum of 50 units per project.
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Parliament ratified the Real Estate Development and Immovable Property Marketing and Valuation Proclamation by majority vote, with two objections and one abstention this week.
