To their disappointment, Brehanu backed the Agency that the increase should remain in place, according to sources. He, however, contested the amount of the increase residents claimed. The Agency has only increased one dollar on the four dollars per square meter rent amount, totalling an increase of 25pc.

“I cannot comprehend why these people are thinking in terms of dollars while we are in Ethiopia, pay in Birr and that is the official currency of the country,” said an angry resident.

He is unable to grasp the logic why an increase from 3,200 Br to 6,800 Br, for a one-storey villa, is considered to be only 25pc.

The Agency is expected to explain this to residents; Enewey G. Medhin’s top management has called a meeting on Monday afternoon, October 9. It seems the management is sandwiched between residents’ outrage and the finger pointing of its board members.

A sources close to committee members told Fortune that the meeting with Brehanu was characterized by his resolve to remain inflexible to CMC resident’s request for reconsideration by claiming that the increase was done after a thorough study last year. He also reportedly disclosed the Agency’s plan to engage in a wide spread plan to increase rent on a majority of the 18,000 houses the Agency manages, following a new policy of valuing houses not only in terms of size but also the quality of neighbourhood.

“A house in Bole area will have a higher rent compared to one elsewhere although they have similar size,” said a reliable source.

Brehanu is thought to believe conceding to CMC resident’s request may create precedence to others who are lined up to face subsequent increases. But he also blamed the Agency’s incompetence in handling the situation in an appropriate manner, said a source.

Brehanu assured the two representatives that any disagreement with the Agency could only be resolved through a court of law and should there by any eviction, the Agency will follow due process of law, said sources. Nevertheless, he disclosed the government’s ultimate interest to get out of the business of managing the houses after selling to interested individuals, after recovering the investment cost, which he said has only been recovered by 40pc so far, according to these sources. 

Members of the Committee are expected to meet with residents today, October 8, to explain the deadlock situation with the government. Many are expected to leave, following the footsteps of nine residents that have left so far.

“On the fact that the recent price increment does not take into consideration the resident’s paying capacity, many more might leave their houses” said a committee member.

Whether they will have better offer in the city is open to question.

“Are there enough houses that can accommodate them and within such a short time of span?” another committee member wondered.

Those working in house brokerage agree that the demand in Addis for rent or sale is much higher than what is available.

The official statistics support this claim. There is a demand for 900,000 additional houses throughout the country, according to an official of the Ministry of Works and Urban Development. The government has a mega plan to ease this huge deficit with a construction of 100,000 new houses every year for the next five years at a cost of 4.2 billion Br.

The high demand of houses also escalated prices. According to brokers, there is a 20pc to 30pc increment on prices when compared to the previous year. Most of those who want to rent houses come with rents ranging from 5,000 Br to 16,000 Br.

Tegene Woldemaraim, general manager of TWM Commission Agency, a veteran in the brokerage business with 20 years in the business, observed that availability of garden and enough space in a compound are among of the features tenants are often passionate about. Tegene witnessed a rent of 13,000 Br for a villa, inside a 1,0000sqm compound, near Kazanchis, for it has a refreshing garden. It used to be rented for half that price a year back, said Tegene. He had a similar experience last week: a house, which previously rented for 9,000 Br was rented on Thursday, October 5, for 16,000 Br.

Renovation of houses is raised as one of the reasons for the price increment of houses.

For Girum Hailu, a commission agent in the house renting business, the departure of foreigners after the political instability following the May 2005 national election, was a time of cheap rent.

Things have changed since then, he observed. The demand is getting high, more so with the news that many would leave their houses at the CMC.

Committee members see a correlation between the Agency’s announcement to double rent and a sudden sharp increase of rent at the Ayat Residential Village, a private real estate three kilometres north of the CMC. According to brokers in the area, an increase of 1,000 Br to 2,000 Br on regular amount was observed in the past couple of weeks.