Why Buying an Apartment with a Birr Contract Is Risky in Ethiopia (High Inflation Explained)

Buying an apartment in Ethiopia today comes with serious financial risks if you don’t understand the contract structure.

Because the Ethiopian economy is highly inflationary and driven by the US dollar, purchasing an apartment under an unfixed Birr construction contract can create major problems over time.

In this video, I explain:
• Why Birr contracts are risky during high inflation
• How construction costs per square meter increase over time
• Why developers face budget deficiencies
• How this leads to construction delays and delivery failures
• The most important question buyers must ask before signing
• Why dollar-based contracts often provide more protection

If a developer cannot clearly explain who covers the rising construction cost gap, you should think twice before buying.

This video is for:
✔️ Apartment buyers
✔️ Investors
✔️ Ethiopians in the diaspora
✔️ Anyone planning to buy property in Addis Ababa

1. Ethiopia’s economy is changing
2. Inflation is high and continuous
3. Construction materials are priced in dollars
4. Birr contracts are often unfixed
5. Rising cost per square meter creates a budget gap
6. Developers fail to cover the gap
7. Construction delays happen
8. Buyers don’t receive what was promised
9. The key question buyers must ask
10. Birr contract risk vs dollar contract safety


❓ KEY QUESTION TO ASK DEVELOPERS (VERY IMPORTANT)

“Construction costs increase over time and are led by the dollar.
Who is covering the cost gap—the buyer or the developer?
Have you analyzed this risk?”

❗️ If the answer is unclear → high risk.


🛡️ WHY DOLLAR CONTRACTS ARE SAFER (CLEAR EXPLANATION)
• Construction prices follow the dollar exchange rate
• Payments are adjusted stage by stage
• The developer does not face budget deficiency
• Construction continues without delay
• Buyers receive delivery closer to what was promised

Don’t buy an apartment just because the price looks cheap.
Understand the contract, understand the risk.
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