The Process and Determinants of Residential House Market in Addis Ababa
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Date
2006-07
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Addis Abeba university
Abstract
Housing market is one of mechanisms that transfer ownership rights of a
house with a combination of different attributes that is defined by its prices.
The process and procedure in housing market is complex both for the
sellers or buyers. Market participants lack sufficient information to
undertake transactions. The paper tries to examine the process and
procedure of the housing market and show how brokers facilitate the
market. The price of the house is not determined arbitrarily. The implicit
price of housing characteristics concerning the physical and location of
Addis Ababa are examined in this paper. The elements of sales
comparison of residential house depend on a package of attributes that· are
, valued by the consumers. A model that incorporate for the quality of the
house, age, floor area, size of the plot area, number of rooms availability
of amenities such as market, elementary school etc. is presented and
discussed. Hedonic price model is used to estimate the most important
determinant factors. Data is collected from households' that buy residential
houses in Addis Ababa. The result of the study suggested that the price of
a house has increased tremendously over a short period of time. Most
buyer of a house prefers plot size, older and structurally poor quality
houses. The paper tries to demonstrate the behavior of residential house
market consumers given the present housing condition of the city. The
policy implication of this study is that the implementation of the urban land
and housing policy of the city administration should be accompanied by
improvement in the residential house market
Description
Keywords
Residential House Market