Proclamation No. 1388/2025 introduces a major reform to Ethiopia’s housing sector, allowing foreign nationals to own residential property under a regulated framework. The law aims to attract foreign investment, encourage technology transfer, and strengthen Ethiopia’s role as a regional hub.

While setting clear requirements such as a USD 150,000 minimum investment, foreign currency payments, and strict approval procedures, it also establishes prerequisites such as proof of financial resources, a clean criminal record, and ministerial authorisation. Benefits include long-term visas and remittance rights, and safeguards remain in place in the form of restrictions on location, financing, and usage.

Overall, the proclamation – for which implementing regulations and directives are still pending, despite its enactment 8 months ago – seeks to balance investment with national oversight and housing stability.

Our Ethiopia Team gives a practical overview of the reform in the newsletter linked here.