Evictions and informal payments are on the rise in Addis Abeba's rental market, despite formal lease contracts. More than 60 percent of the city's households are renters, with private arrangements now dominating. Intended to safeguard tenants, the rental law is instead prompting off-the-books deals amid regulatory hurdles and inflation.
Evictions and informal payments are rising in Addis Abeba's rental market, even with formal lease contracts in place. Over 60 percent of the city's households rent their homes, and private arrangements have become the norm. Tenants and landlords are turning to off-the-books deals to navigate regulatory constraints and soaring inflation.
In early 2026, average monthly rents for studios in central Addis Abeba hit 45,000 birr. Property tax revenue jumped twentyfold in a single year, though it remains a small slice of the city's total income.
It was a typical day for Ademu Yehulashet when her landlord demanded she leave the two-bedroom condominium she rented, saying he intended to move in himself. This anecdote highlights the strains in the rental sector, where a law designed to shield tenants is instead stoking conflicts between the two sides.
