Buying a new property can be exciting. But before you commit your money, look beyond the brochure, the showroom, and the promised completion date.

Buying directly from a real estate developer can be an attractive way to acquire an apartment, house, commercial property, or other real estate in Addis Ababa. New developments can offer modern designs, new infrastructure, flexible payment arrangements, and the opportunity to secure a property before completion.

But buying from a developer is also different from buying a completed property from an existing owner. You may be committing substantial amounts of money before the property exists in its final form. The developer's ability to complete the project, the terms of your agreement, the way payments are structured, and what ultimately gets delivered can all have a major impact on your investment.

Ethiopia's real estate sector is now subject to a dedicated federal framework under the Real Estate Development and Real Property Marketing and Valuation Proclamation No. 1357/2024, which covers areas including developer qualification, real estate development, marketing, valuation, and transactions.

Yet regulation does not eliminate the need for buyers to do their own due diligence.

Here are five major things to consider before buying property from a real estate developer in Addis Ababa.

1. The Developer: Who Are You Actually Buying From?

Before evaluating the property, evaluate the developer.

When you buy from a developer, you're not simply purchasing a physical property. You're relying on a company to deliver something that may still be under construction, incomplete, or even at the planning stage.

That makes the developer's track record one of the most important things to investigate.

Look beyond the sales office

Ask:

• How long has the developer been operating?
• What projects has the developer completed?
• Were previous projects delivered on time?
• What was the quality of those completed projects?
• Have previous buyers received their ownership documentation?
• Are there unresolved disputes involving previous developments?
• Does the developer have the required qualification and approvals?
• Who legally owns or controls the land on which the project is being developed?

Ethiopia's current real estate proclamation requires domestic and foreign investors intending to engage in real estate development to obtain a developer qualification certificate from the appropriate authority.

You should therefore look beyond the developer's brand and marketing reputation and establish the legal and practical identity of the entity you're actually contracting with.

This is particularly important when the name used to market a project is different from the legal entity appearing on the contract.

Look at what they've actually delivered

A developer may have an impressive project under construction today, but its previous projects can tell you much more about its ability to deliver.

Visit completed developments where possible. Speak to existing owners. Look at the quality of construction and finishing. Ask about handover, documentation, maintenance, common areas, utilities, and the developer's relationship with owners after completion.

Recent reporting on Addis Ababa's real estate market has highlighted disputes involving delivery delays, price adjustments, contractual interpretation, area measurements and other disagreements between developers and buyers. These cases do not mean every developer presents the same risks, but they demonstrate why a developer's track record deserves serious attention.

A beautiful development is not enough. You need confidence in the company responsible for delivering it.

2. The Property: Make Sure You Know What You're Buying

A developer's brochure can show you what a property is supposed to become.

Your job is to understand what you are actually purchasing.

This becomes especially important when buying before completion.

Understand the unit

Make sure you know:

• The exact unit or apartment number
• Floor and location within the building
• Size and how that size is measured
• Number and size of rooms
• Balcony or terrace
• Parking arrangements
• Storage areas
• Common-area rights
• Any other spaces or facilities included in the purchase

Understand the building

Don't look only at your apartment.

Consider:

• Number of floors
• Elevators
• Parking
• Water supply
• Electricity and backup systems
• Waste management
• Security
• Fire-safety systems
• Common areas
• Access roads
• Other promised facilities

A building can look impressive in a rendering while some of the practical infrastructure needed to make it functional remains incomplete.

The Ethiopian government's construction-permit process, for example, involves design approval, construction permits, inspections and, at completion, an occupancy permit before a building can be occupied.

Don't rely on verbal promises

One of the biggest mistakes a buyer can make is assuming that everything discussed by a salesperson automatically forms part of the deal.

If a particular finishing material, parking space, amenity, floor plan, facility, or specification matters to you, understand whether and how it is documented in the contractual documents.

If it matters to your decision, make sure it is properly documented.

3. The Money: Understand How and When You Pay

The headline price of an apartment isn't the only financial consideration.

You need to understand the entire payment structure before committing yourself.

Ask what the full cost will be

Consider:

• Initial deposit
• Payment schedule
• Construction-linked payments
• Additional fees
• Taxes and other charges
• Registration-related costs
• Parking costs
• Potential changes in unit size
• Changes to specifications
• Financing costs
• Penalties for late payments

Then ask one of the most important questions:

What happens if the project is delayed?

Pre-sale arrangements can require buyers to commit money while construction is still underway. Payment structures may either be tied to specific dates or linked to construction milestones. Legal analysis of Ethiopian real-estate pre-sale agreements has highlighted this distinction and its importance when disputes arise.

A payment schedule tied to dates is fundamentally different from one tied to independently verifiable construction progress.

For example, instead of simply asking:

“When is my next payment due?”

you should also understand:

“What exactly must have been completed before I make that payment?”

You should also understand what happens if the project doesn't progress as expected.

What happens to payments already made?

Can the agreement be terminated?

Are there penalties?

Is there a refund mechanism?

What happens if the developer cannot complete the project?

These questions are much easier to address before you sign than after a dispute begins.

4. The Contract: Read It for What Happens When Things Go Wrong

This may be the most important document in the entire transaction.

And you shouldn't read it only to understand what happens when everything goes according to plan.

Read it to understand what happens when it doesn't.

A developer's agreement may cover hundreds of details, but several areas deserve particular attention.

Completion and delivery

• What is the contractual completion date?
• What exactly constitutes completion?
• Is there a grace period?
• What happens if the developer is late?
• Are there consequences for delayed delivery?
• What circumstances allow the developer to extend the deadline?

Price

• Is the purchase price fixed?
• Can the price change?
• Under what circumstances?
• What happens if the final property size differs from the original agreement?
• Who pays for additional costs?

Recent disputes involving Addis Ababa developments have included disagreements over post-construction area measurements and additional payments, illustrating why these provisions need to be understood before signing.

Specifications

Look carefully at provisions covering:

• Finishing materials
• Fixtures
• Appliances
• Common facilities
• Parking
• Building systems
• Changes to the design

Can the developer substitute materials?

Can the developer change the design?

Under what circumstances?

Cancellation and default

Understand what happens if you fail to pay—and what happens if the developer fails to perform.

These are often treated very differently in contracts.

You should understand:

• Late-payment penalties
• Developer default
• Cancellation rights
• Refund provisions
• Compensation
• Interest
• Dispute resolution

Ethiopian legal analysis of pre-sale agreements has identified completion delays, payment modalities, construction quality, contractual remedies and dispute-resolution provisions as important areas for buyers to examine.

Don't sign a contract simply because everyone else buying in the project is signing the same contract.

If the agreement is important enough to commit hundreds of thousands or millions of birr, it is important enough to have properly reviewed.

5. Construction, Delivery & What Happens After You Pay

Signing the contract isn't the end of the buyer's responsibility.

For an unfinished project, it may be the beginning of a much longer period of monitoring.

Watch the construction, not just the calendar

A developer may give you a completion date, but the more useful question is:

Is the project actually progressing toward that date?

Look at:

• Construction milestones
• Site activity
• Structural progress
• Finishing work
• Installation of building systems
• Infrastructure
• Common areas
• External works

If you're living abroad, this can be particularly difficult.

You may not be able to visit the site regularly, speak directly with contractors, or determine whether reported progress accurately reflects what is happening on the ground.

Look beyond the apartment

A building isn't finished simply because your apartment looks finished.

Water, electricity, elevators, access roads, parking, sewage, common areas and other infrastructure can affect whether the property is actually ready for use.

Recent reporting in Addis Ababa has illustrated how disagreements can continue even after buildings are substantially complete, including disputes over utilities, common areas, additional costs and handover.

Don't treat handover as a formality

Before accepting the property, consider:

• Is the unit actually complete?
• Does it match the agreed specifications?
• Are there defects?
• Are common facilities operational?
• Are utilities connected?
• Is the necessary documentation available?
• What outstanding work remains?
• What is the process for resolving defects?

The government construction process itself provides for final inspection and an occupancy permit before occupation.

Completion should be something you verify, not simply something you're told.

A Developer's Promise Is Only One Part of the Decision

Buying from a developer doesn't have to be a gamble.

There are many reputable developers and many successful projects in Addis Ababa. The point isn't to assume that something will go wrong.

The point is to make sure you understand the risks before committing your money.

A strong development opportunity should withstand scrutiny.

You should be able to investigate the developer, verify the property, understand the payment structure, review the contract, monitor construction, and establish exactly what will be delivered.

The more money you are committing, and the earlier in the development cycle you are buying, the more important this becomes.

Buying From a Developer When You Live Abroad

For Ethiopians living abroad, the challenge is even greater.

You may be thousands of miles away when:

• The contract is presented
• Payments become due
• Construction changes
• A problem appears on site
• The developer changes its position
• A deadline approaches
• A document needs to be verified
• A property needs to be inspected

You can ask someone you know to check on things. But managing a significant property investment through scattered contacts can make accountability difficult.

You need someone who can verify, document, follow up and represent your interests on the ground.

This is one of the reasons independent representation can be valuable when buying a developer property.

Before You Pay: 15 Questions to Ask

The Developer

1. Who is the legal entity developing the project?
2. Is the developer properly qualified and authorized?
3. What projects has the developer completed?
4. Can I speak with previous buyers or visit completed projects?

The Property

5. What exactly am I buying?
6. What is the exact unit size and how is it measured?
7. What is included in the purchase price?
8. Which specifications and facilities are guaranteed in writing?

The Money

9. What is the complete cost of the purchase?
10. Can the price change after I sign?
11. What happens to my payments if construction is delayed?
12. What happens if I need to cancel?

The Contract & Handover

13. What happens if the developer misses the completion date?
14. What happens if the completed property differs from what was promised?
15. What must be completed and documented before I accept the property?

Real Estate Shouldn't Be a Leap of Faith

Buying a property from a developer can be an excellent opportunity. But the decision shouldn't be based solely on a beautiful rendering, a persuasive salesperson, or the promise of a particular completion date.

Know the developer. Know the property. Know the numbers. Know the contract. Know what happens after you pay.

And if you're buying from abroad, make sure someone you trust is actually looking after those details on the ground.

At TATARI, we believe buying property should be an informed decision, not a leap of faith. Our role is to help buyers evaluate opportunities, verify what they're being offered, understand the risks, represent their interests, and keep an eye on what happens after the agreement is signed.

Don't just buy the promise. Understand what you're buying.