Assessment of Urban Land and Housing Market of Mek’ele city
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Date
2019-06
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Addis Ababa University
Abstract
Housing market is one of mechanisms that transfer ownership rights of a house with a
combination of different attributes, which defined by its prices. The process and procedure in
housing market is complex. Market participants lack sufficient information to undertake
transactions. This research was initiated to investigate how the residential land lease market is
functioning within the Mek’ele city in different modalities of transaction that has been fluctuated
unpredictable price for the last decade; the procedure of land transaction and how the brokers
affect the transaction is examined in this paper. The winning price of lease auction and
secondary market is also examined in relation to location and time. The researcher applied a
concurrent explanatory/exploratory mixed research method. Six round Land auction data
collected, focused group discussions, in-depth interviews conducted and sufficient desk review
made. The result of the study suggested that the price of lease auction has increased
tremendously over a short period. The study shows that the lease auction market is not healthy
and it is unpredictable. Even though the secondary housing market is facilitated by, the brokers
but they do not have legal framework and encouragement by the city administration. However,
the brokers have a negative impact in the lease auction by increasing the price. The house
transaction system is complex, bureaucratic and exposed to rent seeking it is also not systematic.
The man power and finance in not strong enough to make the market healthy I recommend that
enough land should be supplied both in lease and allotment modality. This means before leasing
the land; there must be land demand identification, proper planning, land banking and provide
necessary infrastructure are the mandatory function to minimize the supply and demand gap of
the land.
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Key words: Formal land market, informal land market, primary land market, secondary land
and housing market, factors affecting land and housing market
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Keywords
Formal land market, informal land market, primary land market, secondary land and housing market, factors affecting land and housing market