Ethiopia’s real estate sector has taken a significant step forward with the recent enactment of a law aimed at protecting buyers and ensuring greater developer accountability. Called the Real Estate Development and Real Property Marketing and Valuation Proclamation, the law mandates that developers must complete at least 80% of a project’s construction before transferring any housing units to buyers. This requirement includes having all major mechanical, electrical, and sanitary infrastructure in place.

This reform comes in response to long-standing complaints from homebuyers frustrated by delays and by being handed over unfinished homes. Under the previous system, many buyers found themselves locked into purchases where major finishing works were left incomplete, leading to uncertainty and financial loss. With the new law, potential buyers can expect far more certainty: if a project isn’t sufficiently built, ownership transfer must wait until that standard is met — or, in some cases, occur only with mutual agreement between buyer and developer if less than 80% is complete.

The implications are broad: for developers, this means stronger incentives to stick to construction schedules, higher quality standards, and better project financing and oversight. For buyers, it means more protection and assurance that they will receive what they paid for. For companies like Keylink Properties, this change highlights the importance of transparency, thorough due diligence, and working with credible developers. Overall, this policy change promises to restore confidence in Ethiopia’s real estate market and could attract more buyers, including diaspora investors, seeking reliable and safe property investments.