Saturday, September 30, 2023
NewsNew low-cost housing scheme for public servants emerges

New low-cost housing scheme for public servants emerges

They will get three bedrooms apartment for less than 1.5 million birr

Plans are currently underway to start a new housing scheme for public servants in Addis Abeba, with homes available for as little as 14,285 birr per square metre. The proposed rate is significantly less than the average cost of constructing an apartment, which is currently as high as 25,000 birr a square metre.

The Addis Ababa City Administration passed the new directive by establishing guidelines for the “formation and structure of cooperatives to develop a collective housing program for public employees.” The City Admin hopes to alleviate the dire housing needs in the country’s capital.

Government employees would be required to set aside 10 to 15 percent of the housing costs in a closed account, with the remaining amount paid for through bank loans. Both the land and the loans from the banks are made available by the Administration.

The apartment complexes range from G+4 to G+15. The G+4 buildings can hold up to 70 people, while the G+15 can hold up to 150. The City Administration’s Construction Design Bureau determines the project and housing costs and layouts.

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The estimated cost of a 105-square-meter, three-bedroom apartment is between 840,000 and 1.5 million birr. Apartments with two bedrooms range in price from 675,000 birr to 1.1 million birr, while studio apartments cost from 480,000 birr to 900,000 birr.

Costs will vary depending on factors such as the scale and complexity of the scheme being planned. Current schemes such as 20/80, 40/60, and 10/90 are all options for the employees’ cooperative to consider.

Housing in the new program, experts say, is priced significantly below the market average, making it affordable for state employees.

The plan that the city administration has proposed, however, has been met with opposition from several regional states. This disagreement centers on the administration’s definition of the term “public employees” in its new directive.

“Public employees” are defined as “residents of Addis Ababa who permanently work in public institutions and state-owned enterprises of the city administration or federal and Oromia institutions that are based in Addis Ababa.”

This means that the new housing program will only be available to those working at public institutions in Addis Ababa, Oromia Regional Government, or at the federal level.

The directive “disregarded the fact that Addis Ababa is equally home to all Ethiopians and all the residents of the regional states,” an official familiar with the situation told The Reporter.

Several regional states have offices, branches, and liaison offices in the capital city, the official says, adding, “So the program should not be limited to those in Oromia, Addis Ababa, and the federal government.”

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