Ethiopia News: Ethiopia now lets foreign nationals own a residential house, and a 2026 directive sets the rules: a government permit, a minimum price between US$100,000 and US$150,000 depending on the region, and payment in dollars through the banking system. As the market opens, the weak point is trust between buyers abroad and agents on the ground. AksumBase, a real estate platform built for African markets, is betting on KYC-verified professional profiles to close that gap.
Key facts
- The law: Proclamation No. 1388/2025, published in the Federal Negarit Gazeta on 2 October 2025, ended the ban on foreign ownership of residential houses.
- The rulebook: Directive No. 1147/2026 sets the permit process and price thresholds.
- Minimum value: US$150,000 in Addis Ababa and Sheger City, US$120,000 in most other regions and Dire Dawa, US$100,000 in Afar, Benishangul-Gumuz and Gambella.
- Limits: one house per foreign national, residential use only; the land stays state-owned under lease.
- AksumBase: its East Africa phase, covering Ethiopia, Kenya and Tanzania, runs from September to December 2026.
What does the new rulebook require?
Buyers need a purchase permit from the Ministry of Urban and Infrastructure before they sign anything. The application asks for valid identification, evidence of no criminal record, proof of the capital deposit and security clearances. The permit lasts one year.
Payment is tightly controlled. Funds must arrive in US dollars through a bank, are converted into birr and sit in a blocked account until the ministry authorises release. Domestic financing is not allowed. After the purchase, the owner has 30 working days to notify the ministry and submit the title documents. Government-subsidised condominiums and cooperative housing are excluded.
In short, the state verifies the buyer very carefully. Nobody verifies the agent.
Why identity is the bottleneck
East African cities already know what happens when demand from abroad meets an unregulated middle layer. In Nairobi, Citizen Digital reported a wave of rental scams in Kilimani, Kileleshwa and Lavington as expatriates and returnees arrived. Fraudsters posted photos of real homes, posed as owners or agents and collected deposits through mobile money before vanishing. “There are no strict rules. Anyone can call themselves an agent,” estate agent Beatrice Mwangi told the broadcaster.
A permit for a US$150,000 purchase raises the stakes. The buyer, often a diaspora professional in Europe, the Gulf or North America, rarely visits more than once before paying. The agent is the eyes on the ground.
How AksumBase approaches it
AksumBase describes itself as a platform for discovering, buying, renting and listing properties, founded in 2023. Its professional side offers KYC-based identity for agents, brokers, developers and qualified partners. Identity verification runs on LutinX, the digital identity and blockchain certification provider behind the project.
The idea is simple. A buyer abroad should be able to see that the person showing a villa in Bole has been identified, and which company stands behind them, before any money moves. The platform also targets diaspora communities and promotes AI-driven systems to improve listing visibility and reach. It has not yet published technical details of those tools.
The rollout is staged:
- Phase 01 (June–August 2026): Ghana, Nigeria and Gambia.
- Phase 02 (September–December 2026): Ethiopia, Kenya and Tanzania.
- Phase 03 (2027): continental coverage.
A grassroots model for a BRICS member
Ethiopia joined BRICS in 2024 and is opening sector after sector to foreign capital. Real estate is one of the most visible. The opportunity is real, but so is the reputational risk if early buyers get burned. Verified identity at the level of individual agents will not replace due diligence or a lawyer. It can, however, remove the most common fraud, the fake intermediary, at very low cost.
This article is general information, not legal advice. Anyone planning a purchase should check the current directive and consult an Ethiopian lawyer.
FAQ
Can foreigners buy property in Ethiopia?
Yes. Since Proclamation No. 1388/2025, foreign nationals can own one residential house, subject to a permit and minimum price thresholds. The land remains state-owned under lease.
What is the minimum price for foreign buyers in Addis Ababa?
US$150,000 under Directive No. 1147/2026.
What does AksumBase verify?
The identity of agents, brokers, developers and partners through KYC, using LutinX technology.
Disclosure: BRICS24 and AksumBase are part of the same group of companies founded by Alessandro Civati.
Sources: Mondaq; Dablo Law Firm; Citizen Digital; AksumBase.
