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The Oromia Regional State quadrupled land lease
prices and amended three new directives targeting
real estate development and individuals requesting
land for construction of residential houses. The
implementation of the new directives required the
regional Works and Urban Development Bureau to
disburse a circular early last week.
The directives apply both to developers who took
land earlier and future cases, an official of the
Bureau told Fortune.
Large towns inhabited by 100,000 people and above
such as Jimma, Adama (Nazaret) and Shashemene,
as well as other towns located in close proximity of
Addis Abeba such as Dukem, Gelan, Sebeta and
Alemgena, will see the largest rise in lease prices.
Previously 1.68 Br, the lease price for 500sqm grew
by 15pc.
Second-tier towns encompass between 45,000 and
100,000 people; third 10,000 to 45,000; and
fourth-tier below 10,000. These towns will see lower
increments.
The demand of land to build either residential
houses or real estate has increased by 100pc from
the previous time, a regional administration source
claimed when asked why the prices are shooting up.
He added that residential plot sizes would be
decreased from 200sqm to 140sqm.
Although, Oromia encircles Addis Abeba, the cost of
land is substantially cheaper, according to the same
source.
The 700-strong member Diaspora community requesting
plots have organised into 30 associations and
precede locals in the raffling to receive land. Over
1,615 members of the Diaspora already acquired land.
One raffle entrant of the Diaspora told Fortune
plot sizes are too small and the cost of lease too
much, arguing residential plots should be
distributed free from lease fees.
In an effort to improve the income taxes from
agricultural activities and rural land tenure fees,
a review study is undergoing, an administration
source disclosed to Fortune.
The effort to enhance the overall incomes of the
country necessitated a consultative meeting between
officials at the federal and regional levels of
governments under the auspices of the Ministry of
Finance and Economic Development (MoFED) in March
2007. According to officials from MoFED, the meeting
brought consensus to review the income taxes bases
from land tenure fees as well as from the incomes of
agricultural activities.
A letter written by Sufian Ahmed, minister of MoFED,
two months ago, requested regions to review the land
tenure fees income taxes and agricultural works.
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