You may find it hard to believe; Indeed it is true that there was a time in this country when all it took for people to own their posh house was a letter of support from their employer and their ability to pay 119 Ethiopian Dollars as a monthly mortgage.

That was the decade of the 1960s, and what is today known as "Bole Homes", villas built in Bole and Old Airport areas by the first modern real estate company, Imperial Savings and Housing Ownership Association (ISHOPA). Managed by Getachew Tessema, ISHOPA's real estate venture was a modest beginning when Addis Abeba was still forming into a modern capital city. It targeted a modest clientele vastly different from the clients who enter real estate offices today. ISHOPA's efforts aimed to capture the expanding pool of university graduates of the time.

Though the sum ISHOPA was asking seemed out of the reach of the majority, it is a far cry from the unimaginable down payments being demanded these days - 20pc of whatever the total cost of the house you may want to buy. Today, buying a home is something few Ethiopians dream of, let alone seriously ponder. The goal of becoming a homeowner so commonly strived for in much of the world is out of the tangible reach in this Horn of Africa nation; but it does not have to nor should it be this way.

There are many benefits to becoming the deed-holder to the plot that holds one's shelter. Passed the freedom and peace found in being in control of a person's own domain, the responsibility, security, as well as sense of attachment and commitment that follow home ownership have important ripple effects through other facets of life, for many.

Organised housing development by specialised private sector actors is good for development. This is even truer when compared to the scattered and disorganised manner of uncoordinated individual efforts. The big social benefit is of course its ability to generate employment and business to several small companies that provide services as well as supply construction materials. According to data from the Federal Investment Agency, close to 65 real estate firms now operating on the ground have created close to 4,000 jobs.

Moreover, if the mundane and technical aspects of home building are left to experts, the individuals could focus more on their own contributions to the economy. And it is the expansion of the formal real estate sector that pays to the general economy.

On a citywide level, a mere stroll through many neighbourhoods will reveal the troubles with uncoordinated development as the maze of streets is difficult to navigate; it contributes to the disappointingly low levels of public service delivery, sub-par when compared to even other African cities.

Alas, the students of the 1960s and 70s caused the abrupt end of this fledging sector. The military regime nationalised almost all privately owned extra houses and major businesses. Even after a decade of its ascendance to power, the military regime's sponsorship of the real estate market was limited at best, confined to letting state employees form housing cooperatives. It was these cooperatives leaving behind the relics of one-storey brick offerings found scattered around the city and especially concentrated on the Debre Zeit Road, in Saris, as well as few on Africa Avenue (Bole Road).  

To its credit, the military regime encouraged cheap loans (four per cent interest rates) offered by the state-owned Construction and Business Bank (CBB). Thus, the foundation of many of the new neighbourhoods in Addis Abeba - Gerji, Lafto and Keranio, to mention few - was laid back then and this programme widened access to home ownership, though little in the way of private possessions was truly safe in those days.

After the EPRDF took control of the government at the beginning of the 1990s, the private real estate market began to emerge; truly, hopes were high for many that the pseudo-capitalist regime would facilitate the private sector to meet the demands of citizens for housing. To be fair, it did.

Unfortunately, the first private company to enter the market was a massive disappointment. Jakros Ethiopia did more damage to home buyers' confidence than offer any help to develop the fledgling sector. After huge sums from people longing for a shelter were misused by the company's managers, scepticism in the efficacy of the sector was rampant. The ensuing court battles of the early 1990s are testament to the painful beginnings of private real estate in the country.

The real pioneer and champion of Ethiopia real estate was Ayat Real Estate Plc, making huge strides beginning 10 years ago. It was re-established in 2002 with a visionary businessman, Ayalew Tessema, claiming 80pc of the company that registered a capital of 330.8 million Br raised by 18 shareholders, two of them his son and daughter. For Ayelew, it would be an uphill battle, as restoring public confidence would not come easily.

Nevertheless, Ayat's early years where it was the sole player of the sector after receiving a vast plot of land named after the company were characterised by an arrogance that often follows on the shoulders of monopolies. The bureaucratic red tape covering all levels of the company meant clients were relegated to drawn out processes to acquire homes they paid for. Unfortunately, when it was finally attained, the quality was sub-par. Ayat's early designs were structurally poor at best.

But many more real estate developers emerged in the past decade. Data obtained from the city government reveals that the Administration had provided 2,138.7hct of plots in Addis Abeba between 1995 and 2006 for commercial, industrial, private condominiums, housing cooperatives and real estate development. The latter claims over 50pc of these plots assumed to be given in 94 locations of the capital, for close to 150 real estate firms.

For prospective home buyers, it may sound great to see the end of Ayat's accidental monopoly, although it remains to be with the largest plot of land given to any developer. Unfortunately, the real estate market, behaves more as a cartel than an industry operating in cutthroat competition whose benefits trickle down to the majority.

The offerings from these companies are disturbingly limited and not close to the creativity that is possible. Walking into any real estate office will yield a similar experience no matter where they have their plots in the metropolis. They seem to be confined to compete on proximity of their plots to main roads and basic infrastructure, and seem only to differ on design.

Real estate in Addis Abeba currently targets the two extremes of the income earning spectrum, if not the Diaspora that is perceived to be simply rich. The proactive role the city government has taken to require real estate firms to devote 70pc of their product offerings to condominiums and apartments is a constructive policy, though it does not appear to be doing what it should to alleviate the housing shortages for low income groups in the metropolis. Its enforcement failure is due to severe shortages of both human and material resources available to be devoted to inspection and monitoring.

Lack of capacity sadly relegates even well-intentioned policies futile too often in this government that seeks to intervene excessively in a variety of markets.

The upper echelons of the income spectrum get little selection with bottom-end two-bedroom flats running for 500,000 Br that are similar no matter where one is interested to buy from. Moreover, the only two choices of plot size, 250sqm and 500sqm, are by no means satisfying for the home-seeker who may have particular tastes.

It is frustrating to see that their pricing seems to have been copied from one source; all list close to two million Birr for a one-storey house built on a 250sqm plot and double that amount for a house on 500sqm. Even payment options are disappointingly uniform: 20pc down payment and the remaining amount to be settled in four instalments. They all tell you the same storey: that should you need financing for the house to be completed in the standardised 18-month period, they will all arrange it with a bank, most likely from CBB, that would be paid in 10 years with an interest rate of 11.5pc.

The currently underdeveloped sector is a sad scene considering the potential in a growing economy and with the public benefits to be realised with a strong market.

Should not they be more clever, creative and attractive in their marketing than this? Should not they be intelligent in targeting the vast majority middle-income professional urban group that is literally left out from low-income state-built condos and high-end double-storey villas? Should not there be an enterprising company that could build houses with cheaper materials than the cumbersome bricks and concrete that is overly employed by the industry? 

Though one may criticise the private sector agents for these shortcomings, the government cannot also escape the blame. The government discourages home ownership with the 15pc VAT imposition, which is contrary to tax breaks that are offered by governments across the world to buy a house.

It is clear that the government is reaching to earn revenue on many fronts, indirectly acknowledging its low tax collection capacity. However, primary home ownership is not the correct method. The government should be offering attractive packages, especially to the middle-class.

Until the government proactively encourages real estate development and the private sector players become more creative and aggressive in their packages, these will remain fleeting dreams thought about while gazing up at the modern mansions housing the super rich, or wondering at those pathetic state-financed condominium houses.