Modelling Determining Factors of Private Residential House Rental Values Using a Hedonic Pricing Model: The case of Lemi Kura Woreda 10, Addis Ababa
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Date
2026-06-01
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Addis Ababa University
Abstract
In the Lemi Kura Woreda 10 of Addis Ababa city, the tenants are not clear in determining the rental value of the properties as the market condition, demand, and preference change over time. The purpose of this study, therefore, was to analyze the determinant factors of the rental value for the private residential house in Addis Ababa and the Lemi Kura Woreda 10 in particular. To undertake the study both qualitative and quantitative approach was used. The target population for the study was private residential properties from which 131 samples were selected. Questionnaires, interviews, focused group discussions, and observation were used for collecting data for the study. Relative importance index and multiple regression analysis were used for analyzing the quantitative data and descriptive analysis was used for qualitative data. The result of the study revealed that the amount of rental value of the properties was solely dependent on the determinant variables. Determinant variables such as proximity road, finishing materials of the properties, floor area, and architectural style were found significant. Besides, the study recommended for the need of upgrading systems for accessing information, attention by the government for the uncontrollable rental increase, revision of housing policy and infrastructure development by the government.
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Property Valuation, Rental Value, Determinant Factors, Residential Properties