Browsing by Author "Belete, Masresha"

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    COMPARATIVE ANALYSIS OF MONTHLY RENTS FOR GOVERNMENT AND PRIVATE RESIDENTIAL APARTMENTS THE CASE OF ADDIS ABABA, ETHIOPIA
    (EiABC, 2018-09) Belete, Masresha; Mesfin, Yilma
    Real estate product by its nature is heterogeneous and its value is the combination of the integrated components of the property, amenities, and externalities which may be positive or negative but, these determinant variables are not studied sufficiently in Ethiopia. This study is conducted on the comparison of monthly rents for private and government-administered residential apartments in Addis Ababa, the capital city of Ethiopia, at three case study areas, CMC, Jemo and Kazanchis on 164 sampled private residential apartments and 150 government-administered residential apartments. The sites CMC, Jemo and, Kazanchis were selected purposefully for the existence of concentrated comparables and completion of constructions of real estates in those areas. The samples were selected purposefully to include variations in floor levels, the number of bedrooms, access to lift, the number of bathrooms, external wall finishes types and better views. These variables are included at each floor levels. The monthly rents of private residential apartments are collected by questionnaires from the tenant and the monthly rents of government administered residential apartments were taken from the federal housing corporation. Based on the data, the average monthly rents of one, two and three bedroom of government-administered residential apartments for both diplomat and the local tenant is smaller than the monthly rent of private apartments. The rent of government-administered residential apartments is determined by the advanced regulated procedure. Based on the regulation and actual estimation of rents, quality of property to be rented, the internal area of the property, tenant type (as local and diplomatic ) and Site level that the property exists are the main determinant variables for government-administered residential apartments. The regression result of private residential apartments at the case study areas indicate as nine significant variables (Area of the apartment, Acces to balcony, Security of the compound, Access to type of road, Access to parking area, Number of bedrooms, Access to lift, Type of external wall finish and the Location of the site) that determine the monthly rent at the 95% level of confidence interval. Monthly rents should be determined in relation to the coefficients of these significant variables with the developed model. In comparison to the private residential apartments, the government administered residential apartments are rented at lower amounts and it is static. The monthly rent of private residential apartments increases in each contractual agreements and tenants rise this issue as their problem. It is not to say there should be static rent, but the increasing rate is high. To solve this challenge of the tenant, there should be a guide on landlord-tenant relationships. From the highest and best use perspective of real estate, the government administered residential apartments are rented at the lower value. To solve this problem, the government should either privatize or adjust the rent at least not to be static.