The dominant and extraordinary property developer Noah Real Estate is expanding its domination of the sector by acquiring even more real estate properties under its scheme. The latest deal features Ambassador Real Estate that has transferred its property to Noah.
Noah also inaugurated 200 residential apartments at a site called Noah Garden Residential Apartment around commonly known as Gurd Shola in east Addis Ababa.
The real estate developer have also secured and started swift development on the property of Ambassador Real Estate.
A source close to the company told Capital that Noah, one of the most reliable real estate developers, has secured an over 30,000 square meter plot of the Ambassador Real Estate to accelerate its business.
“The plot is located around Ayat north east of Addis and we have already started using 16 blocks to build a G+5 structure on the site,” a source at the company said. The source added that the structure work is completed in 3 months and now the project is transforming to the next level.
Noah has implemented a similar approach in the past. They have also managed other company’s real estate sites and defused some of the disputes between those companies and home buyers.
Ethiopia’s real estate industry is known for untrustworthiness, because most of the developers have delayed projects for much longer than the agreed period in contracts or projects have been completely undone and buyers have never gotten their homes.
The seven- year-old Noah Real Estate is different because they build the homes before they are sold. This allows them to get homes transferred to buyers consistently and on time.
Even though they are late to join the game than other developers they have transferred about 4,000 houses to customers in the past seven years.
Abiy Hailemariam, who works for Noah, told Capital that the company is currently constructing 3,000 houses that will be transferred to customers using different arrangements.
According to sources, in the past the company has managed the sites of other real estate companies and has even transferred houses without further charge to those who paid the original developers but were unable to get their homes and were waiting for several years.
A few months ago, the company leaders told journalists that they use other real estate developers’ plots to construct houses for individuals that have a contract with the original developers. Noah sees this as a win/win situation.
According to sources, the company is currently in the final stage of taking over other real estate developers site to continue projects.
“The management of the company is in discussions to manage an over 30,000 square meter site from another developer,” sources said. They declined to give details and the name of the company who transferred the plot to Noah. “The agreement will be finalized in a few weeks and we will disclose it then,” a source at the company stated. Ambassador is one of the biggest developers in the city.
The company has also commenced the construction of a G+35 building at a site called Legehar in the heart of Addis Ababa. This type of huge building will be a first for the real estate developers.
“The building will be for office purpose but we will follow different approach on that project,” Abiy said but declined to give further.
Recently Noah has introduced a new scheme that allows customers to settle their payment in a different time frame than the new business platforms to expand access to homes for citizens and the Diaspora. The platform includes a mortgage scheme with partner bank that will allow home buyers to pay off their homes over 20 years.
“Most of our clients are Ethiopians. If we estimate about 80 percent of buyers are locals, while the balance is the Diaspora,” Abiy estimated. He explained that currently buyers come through different schemes to buy houses.
Even though there are challenges he thinks business is as good as the past. “The real estate industry in my view and in our company has not declined,” he says “So far I am satisfied.”
Rateneh Fassil, who also works for Noah, said that Noah’s projects are like the government housing projects. “We are massively building houses like the government project,” he said.