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Mortgage crisis to hit Ethiopia

Posted on by EthiopianReview.com

The housing market bubble in Ethiopia is about to burst as mortgage holders, including many of those in the Diaspora, fail to make payments to the Commercial Bank of Ethiopia (CBE), an investigation by the Ethiopian Review Intelligence Unit reveals. CBC is now sitting on over 200 billion birr unpaid principal balance. The Woyanne junta has recently ordered the banks not to foreclose any house until after the election in May 2010… details later

21 thoughts on “Mortgage crisis to hit Ethiopia”

  2. Woyane will use this as a means of transferring assets from Ethiopians to TPLF supporters. Banks will evict owners. Woyane uses every situation for its advantages. Woyane will manipulate it to transfer titles to Woyane and its supporters. Woyane has diverted aid money to foreign bank accounts and political supporters. Gave land to Sudan. Evicted countless natives from their ancestral lands, gave land for free or cheap to foreign companies make women, men, and children on their own ancestral land laborers and dependants of foreign agro business. Caused injury to the nation ceded water rights to Egypt addition to the injury caused by colonial power’s invalid treaty. Land locked Ethiopia. Woyane favors one region in expense of other regions. Woyane has no good intensions for Ethiopia. It can make profit of any situation for its region at expense of the nation that is incidentally transitions in services of the TPLF manifesto. Housing market bubble, mortgage crises does not mean much too central Woyane’s vision. Woyane will deny it even occurs. Woyane will proclaim 10 % GNP growth, 10% GDP growth while adding millions more to poverty. Woyane domestic agents for political reasons and international supports for continuity reasons are manufacturers of fictional reports. Housing market bubble will be another tool of suppression for an opportunist Woyane.

  3. God is always with Ethiopia and its poor. The reason why I am saying that is, all those selfishes from the diaspora who sold themselves for Woyane bait and built houses and left the struggle are gone to face the ultimate pay back. They will no more trust Woyane. If they are not able to make their mortgage payments, Alas! the house belongs to Meles as was planned from the begining. Now they can’t say they can not demonstrate against woyane because they have a house in Ethiopia.

  4. I was expecting this to happen sooner than later, what ever goes UP will come DOWN, Ethiopia’s (Addis)housing bubble is not immune of global crissis, I don’t care how you spin it it will happen. Good news for the locals that getting your own place become a remote dream.it happen whether we like it or not.

  5. A guy who has never seen 1000 birr in his life time gets quater million dollars from bank loans and spends the money on any thing and how the hell is he supposed to pay back the principal amount,disregarding the interest and asset value.
    Details please!.
    thank you.

  6. I agree with you all, it is a supply and demand what is driving the real estate market, a lot of us pulled our equity and purchased homes at home land (thinking we are going to live there) unfortunately with these Morons woyanes from Dedebit it might take a while to go back home, and off course I don’t see much investment and money flows back there, so it is true the decline in real estate values is written on the wall, we all know, specially peoples who lives in western states the decline of home values.

  7. Yes, house prices in Addis Ababa have gone way out of reach not only for the locals, but also for the hard working diaspora.

    It looked like that only PARKOLOGISTS were able to buy expensive homes in Addis, the rest of us have been waiting for this opportunity to come.

    For those who are planning to buy properties in Addis, please wait for a year or two … when it will reach the bottom.

    Mind you, if you can buy a house in a good state in the US for $100,000 USD, why buy a house in Addis for $400,000 USD???

    Peace.

  8. The price of a house in Addis is ridiculously high. A price for a peace of land in Ethiopia would buy you a house in another country. The bubble need to burst and the price need to come down to it’s realistic amount. Corruption and inflation has to do with it, but sooner or later reality will catch up and the bubble will burst, but it sound like it’s coming sooner than i expected.

  12. If the real estate market price gets 50% price cut, I will definitely consider buying house in Addis. I do feel the current prices are not only expensive to locals but they are also exepsnive to diaspora.

  14. the current price of a house in the dc area is 50% lower than the price you find in addis…. it has a long way for the addis bubble to deflate. just relax drink your koolaid till the bubble burst

  15. The commercial bank was making these lones in a very corrupt way.We know that almost all the buldings were constructed by loan and now the gov can take them in a day.Property right is a joke in current Ethiopia.Afterall land is the property of tplf and co.

  16. Do u even understand what bubble means? Does it take to be a real estate agent or an economist to understand the prevailing demand-supply mismatch the plagued our housing market for so long? The issue is not that at all, right? For you everything is just cheap politics. You know I try to surf your site thinking that I will get some information, I will learn about what is happening in my country, just a bit of the truth. But you guys are really something; you say you have an intelligence unit that tries to expose malicious acts of the government. But I am sorry to say that your intelligence unit lacks the intelligence of a crawling baby. I do not understand how you consider yourself to be a journalist. Yes Mr Elias, I am talking about or to u. Why don’t you report the fact as it is and let us make our own opinion about it instead of expending your energy and resources on fabrication of naked white lies? Why do you fill all your articles and other people’s articles with profanity and vulgarity? Why don’t you try to be a little civil and stop reporting naked white lie? Don’t you think trust of your readers is much more important than any political scores you want to settle? Just think about it, readers like the truth, how ugly it may seem to you.

  18. I concur that the current home price is too high for any one who lives on salaries be it in Ethiopia or in USA. I was expecting this to happen but came a little late. I wonder how people talk now in 7 digits for a modest house in Addis. Though most buyers are losing in this crisis Meles and his tugs will certainly win. I live in a nice neighbourhood paying for a house that might cost 4 or 5 times in Addis. I wonder why people so much for so little house. This is a crisis created by Weyanes and selfish diaspora.

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