Urban Corridor Development and Commercial Property Rental Values; in the case of Urban Development Corridor in Addis Ababa, Ethiopia
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Date
2025-06-01
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Addis Ababa University
Abstract
The corridor development in Addis Ababa is the first of its kind in Ethiopia deploying huge shear capital with vast area coverage. The adverse effects of corridor development on commercial property values and rent values have been studied in detail in different countries but not in Ethiopia, due to the novelty of the project, hence, it is found necessary to examine the initial impacts of the development on business activities, property values and rental prices. The corridor development section from Piasa to Beherawi was used for the study. Data were collected through questionnaire, interviews and field observations alongside secondary data. Multiple regression analysis was used to quantify cross sectional data of rent per square meters against the independent variables. Descriptive analysis was also used for interpretation of qualitative and quantitative data. The findings of the research indicate, an inverse significant relationship between rent per square meters with floor level and floor area while significant positive relationship was observed with availability of onsite parking, occupancy level and distance from the corridor development. Advancements in road infrastructure have led to increased accessibility which led to appreciations of commercial rent and property values alongside the development while the increased risk of expropriation has led to the depreciation of property values to non-corridor developed areas. In contrast to the intention of the corridor development, regarding boosting the economy of the city, its relationship with business activities is diversified, with most businesses being negatively affected, facing deceased sales volume due to the development itself and extraneous to it. Exaggerated rent prices and agglomeration of businesses are observed, on some portions of corridor development segments, having sufficient parking and accessible public transportation roots. The vice versa is noted for inaccessible and parking restricted sections of the development. Socio-economically, the development has led to the displacement of small scale businesses reducing competition and impeding the availability of goods and services easily. The project is acceptable by the majority of surveyed people; for the improved road infrastructure, and for the clean and beautiful environment it has created. Nonetheless; design, implementation, and policy related problems concerning parking, relocation, compensation, and importance of the project at the current state of the country, have raised serious concerns, decreasing the acceptance level of the project.
Keywords: Urban Corridor, Property Value, Rent, Accessibility, Sales Volume