Addis Ababa Housing Bureau Sets 11.5% Ceiling on Annual Rent Increases

July 9, 2026
By Mintesinot Nigussie

The Addis Ababa Housing Development and Administration Bureau has set an 11.5 percent ceiling on annual house rent increases for the 2026/27 Ethiopian fiscal year, introducing a regulated adjustment framework for private residential rental agreements in the capital.

The bureau said registration for renewed landlord-tenant agreements will begin on July 8, 2026, through housing administration offices in all sub-cities across Addis Ababa.

The decision was made under the city’s house rent control proclamation, which aims to regulate rental adjustments and reduce arbitrary price increases in the private housing market.

The bureau said the 11.5 percent rate was determined based on a study conducted by the city administration, considering economic conditions and residents’ capacity to pay. It added that the adjustment was not set arbitrarily but was based on an assessment of rental market conditions.

The new framework is intended to provide landlords with a predictable mechanism to adjust rental income while protecting tenants from sudden increases that could worsen housing affordability pressures.

Under the arrangement, private residential property owners and tenants will be required to register renewed rental agreements at the relevant sub-city housing administration offices.

The bureau said the measure is part of wider efforts to improve transparency in the rental market, strengthen enforcement of rental regulations and reduce disputes between landlords and tenants.

Addis Ababa has faced persistent housing affordability challenges, with rental costs accounting for a significant share of household expenses in the city. The administration said the regulated adjustment system is expected to create a more stable rental environment for both property owners and residents.

Source: FSX Business News