Noah Real Estate Plc, a sister company of Great Abyssinia Plc, is planning to deliver 120 homes for a total cost 200 million Br to owners on Sunday, September 16, 2018.
The seven-storey residential complexes, Noah East Gate Apartments, hosts two- and three-bedroom apartments located near CMC on the eastern side of Addis Abeba.
The apartments, ranging from 86sqm to 172sqm, are priced between two million Birr and four million Birr. The residential apartments include waste management systems, water tanks and electric generators.
“Everything complies with the contract I signed for,” said Elias Teshome, one of the homebuyers that will receive a key to his apartment.
The buyers paid for the apartments in four instalments, starting with an initial payment of 30pc at 50% completion of construction, and paying the last 15pc of the cost upon transfer of titles.
Construction began 20 months ago on a private property Noah leased two and a half years ago.
Noah operates an asset management firm, Residential Office & Commercial Spaces, that will continue to manage the properties and provide cleaning, maintenance and security services.
While developing the properties, the real estate company faced various setbacks related to electric power supply and lack of access to the land, according to Abiy Hailemariam, a member of the management team at Noah.
The firm is also planning to deliver another 454 homes this year around the Summit Bole and Ayat areas and holds a client list of around 2,000 who are waiting for finished units. The company plans to rent 60 homes in one of its development projects, Noah Adey Abeba Village, that is expected to be completed this year.
“About 300 to 400 homes are, on average, delivered by developers in the capital each year,” said Abiy. “But supply is not meeting demand, and there is more potential in the real estate market to be realised.”
Noah Real Estate was established in 2012 and has sites at 14 different locations. It has handed over 3,600 apartments, houses and commercial properties to its clients, with the last delivery completed five months ago when 180 home buyers received keys to their homes. Noah is a sister company of Great Abyssinia, a fast moving consumer goods company with brands like Abyssinia Coffee, Prigat Juice and Tulip and Aby soft drinks. It has also partnered with Nestlé as part of the Abyssinia Springs bottled water brand.
There are around 630 real estate investment companies across the country with a total investment capital of 3.5 billion Br. The real estate business has contributed 12.5pc on average to domestic growth in the past decade and incomes generated by the real estate market have been growing an average of 14.1pc annually.
Masersha Fisseha, the owner of realethio.com, a website that provides rental and sales listings for real estate, believes that the supply in the housing market has a long way to go to meet demand. But he argues that the price given by real estate developers and the market are generally inflated.
“It won’t last for long though, as more developers come on the scene, and the gap between supply and demand closes,” he said. “Prices won’t stay high for very long.”