[01] Zerayehu Sime Eshete, Commercial Bank of Ethiopia, Principal Economic and Development Officer, Addis Ababa, Ethiopia. [02] Kagnew Wolde Teshome, Commercial Bank of Ethiopia, Manager- Research and Development Department, Addis Ababa, Ethiopia.

This paper mainly examines the performance, challenges and prospects of real estate financing in Addis Ababa with a micro and macro outlook. It employs descriptive analysis and affordability analysis and forwards the followings findings: In the first place, homelessness is a big problem in urban areas; it has been estimated that 57 percent of the residents in Addis Ababa are able to access housing service by rent while 36 percent of them has their own houses. In general, 80% of the residents in

Real Estate, Price Escalation, Condominium, Project Cost, Affordability

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