Tenth Round Land Auction Again Sees Bole Attract Highest Bids

The tenth round of land lease auctions by the Addis Abeba City Administration (AACA) saw a 10,000 Br price reduction a square metre compared to the previous round, with 55,597 Br for a plot in Bole. The bidder making the largest offer will have 30 years to pay in full for the land.

The announcement for this round included 180 plots of land, but only 162 plots managed to get an offer form the bidders, with a requirement of 10pc to 40pc in advance payments. The remaining money will need to be paid within 30 years in most instances, with some extending to 40 years. Winning bidders mostly receive their land on a 60 year lease, with some extending to 99 years.

A woman called Shemsiya Ahmed offered 22.4 million Br for a 403sqm plot of land behind Kenenisa Hotel off Africa Avenue, with a 191Br floor price. It was in the same Bole District, Woreda 3, behind Friendship Hotel, that another bidder made a winning offer of 65,552 Br a square metre for a 153sqm plot.

The City Administration announced the auction for 162 plots on August 20, 2014, with a total area of 55,598sqm – less than the previous round, which had 256 plots with 135,475sqm area across the Arada, Yeka, Akaki Kaliti and Kolfe Keranio districts. This round tender is also less than the eighth round, which offered 284 plots with a total area of 92,828sqm in Bole, Nifas Silk and Kolfe Keranio. It exceeds the seventh round, however, which availed a total of 40,000sqm of land across 95 plots in the Akaki Kaliti, Kirkos, Yeka, Kolfe Keranio, Bole and Arada Districts.

The 10th round auction, which proceeded in instalments between August 20 and September 8, 2014, attracted the highest offer by Shemsiya in Bole District. The least offer that was accepted in this round was 531Br by Rominat Trading Plc, which will pay 4.31 million Br for 8,113sqm in Akaki Kality District.

Out of the 162 plots in the latest auction across the five districts, there were 19 plots each at Bole and Nifas Silk Lafto districts get an offer, 27 in Kolfe Keranio, 91 in the Akaki Kality and six in Gullele District, respectively.

Shemsiya’s plot is one of five in the same area, where the smallest winning offer was 41,111 Br a square metre for 397sqm. The total area of all five plots is 2,588sqm, located close to Millennium Hall and the Embassy of Korea and a five storey hotel building which is under construction, as well as seven residential houses and several bare plots. The residential houses are rented to resident diplomats from Angola, South Africa and the United States for monthly rents of between 3,500 dollars to 6,000 dollars according to a broker in the area. The second highest offer, 51,110 Br, was also made in this area, by Liyuworke Yalew, for a 594sqm plot.

“The price is not exaggerated,” said this broker. “The place has a capacity to construct five storeys.”

From the other districts, Nefas Silk Lafto had the highest offer of 29,721 Br a square metre; followed by Kolfe Keranio – 16,016 Br; Gullele – 15,290 Br and Akaki Kality with an 8,756 Br highest winning offer.

Shemsiya will have to pay a 20pc down payment – 4.48 million Br – for the mixed-purpose plot and will have a two year grace period to start the instalments for the remaining payment. She is expected to complete in 30 years, with a lease right for 60 years.

During the ninth round of land lease auction, on August 2014, Gong Construction Plc won a 3,092sqm plot of land in Arada District for a total cost of 124.5 million Br. The lowest winning amount was 10,502.4 Br a square metre, while the eighth round saw the record offer ever, with 65,552 Br a square metre for a 153sqm plot by S-Nitco Trading Plc. At this time, the lowest price in Bole District was 545 Br a square metre for a 889sqm plot.

The seventh round also saw a high offer from the previous trend, with 31,110 Br from WAM Property Development for a 650sqm plot of land in Woreda 2 of Kirkos District for a total cost of 20,221,500 Br. The lowest amount during that time was 10,502.4 Br a square metre for a 175.46sqm plot in Woreda 6 of Kolfe Keranio District.

The main reason for the price increase was the scope of the announcement efforts by the administration, from just advertising in the Addis Lisan, the city’s newspaper, to include the city’s website and broadcast media. This was done in order to reach more people at home and abroad, according to Zenebu Teklehaimanot, deputy general manger of the city’s Land Bank and Transfer Office.

Prices are increasing because of the limited supply of land and the exclusion of other means of transfer, according to Zenebu.


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