Amenities and Their Influence on the Real Estate Value: The Case of Four selected sub cities in Addis Ababa
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Date
2026-06-01
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Addis Ababa University
Abstract
his study aimed to assess the influence of neighborhood amenities on real estate property values in the Nifas Silk-Lafto, Kirkos, Bole, and Lemi Kura sub-cities of Addis Ababa, Ethiopia. A convergent mixed-methods design was employed, combining a quantitative cross-sectional survey of 205 real estate buyers with qualitative interviews of key informants from selected real estate companies. Quantitative data were analyzed using descriptive statistics, Analysis of Variance (ANOVA), and multiple linear regression, while qualitative data were analyzed thematically. Findings from both approaches were triangulated to enhance the validity of the results. The study found that the mean real estate price was Ethiopian birr 83,009.76 per square meter (SD = 12,835.68). Multiple linear regression analysis revealed that security services (β = 7,715.71, p = 0.003), proximity to schools (β = 5,012.78, p = 0.001), access to public transportation (β = 5,015.36, p < 0.001), and healthcare facilities (β = 4,290.13, p = 0.003) had significant positive effects on property values. Additionally, the availability of parking spaces (β = 2,135.67, p = 0.076) and proximity to green spaces and parks (β = 2,518.55, p = 0.058) positively influenced property prices at the 10% significance level. Qualitative findings further indicated that neighborhood amenities play a critical role in enhancing customer satisfaction and increasing property values. The study concludes that neighborhood amenities are important determinants of real estate property values in Addis Ababa. Therefore, real estate developers should prioritize the provision and accessibility of key amenities to enhance property values, improve buyer satisfaction, and attract potential customers.
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Real Estate Price, Neighborhood Amenities, Hedonic Pricing, Regression Analysis, Ethiopia