Покупатели жилья в Эфиопии подали в суд на компанию Noah Real Estate из-за пересмотра цен и задержек сдачи объектов

In the past decade, Noah Real Estate built a strong reputation in Ethiopia’s property market—a sector long marred by delivery delays and buyer disputes- since the infamous Access Real Estate saga. Uniquely positioning itself by constructing before selling, Noah was widely viewed as an exception. Recently, however, growing buyer dissatisfaction over price adjustments, ambiguous contractual clauses interpretations, exchange rate shifts, and area size variations has led to formal court petitions and court injunction requests. To address these rising concerns arising from homebuyers, The Reporter’s Ashenafi Endale conversed with Yosef Desta, Legal Counsel for Noah Real Estate, to discuss the root causes of the disputes, legal proceedings, and the status of ongoing projects across Addis Ababa. Excerpts: The Reporter: Reports indicate that some buyers have filed court petitions and requested temporary injunctions against Noah Real Estate. What is the actual legal status of these complaints? Yosef: We have not received any court summons to date, nor have we been called to court. As for the legal proceedings, it is simply an application filed by certain clients seeking a temporary injunction, claiming that Noah Real Estate might sell their housing units to a third party before a formal suit is lodged. The company has taken no steps to unilaterally terminate contracts or sell those units to third parties, nor have we issued any warnings to that effect. What is the root cause of this dispute, and what do your buyer contracts specify regarding unit square-meter variations? From The Reporter Magazine Drought Emergency or Seasonal Deficit? Published on 2026-09-02 By The Reporter Magazine The Economy GDP Cannot Explain Published on 2026-08-01 By Samson Berhane 25-Year Sentences & Retroactive Laws: Controversial Draft Law Sparks Fears of Growing Authoritarianism in Tigray Published on 2026-06-21 By Yared Nigussie Red Sea Rivalries: What a Shifting Geopolitical Landscape Means for Ethiopia and The Horn Published on 2026-08-31 By Yared Nigussie The primary cause stems from the variance between the estimated square-meter area in the initial contract and the actual floor area determined during title deed preparation. Our contracts include a tolerance principle accommodating up to a 10 percent area variance. However, clients are required to pay for any additional space beyond that limit; an area variance does not mean the extra space is provided free of charge. Strictly speaking, we could have terminated the agreements under the terms of the contract. Instead, we prioritized maintaining positive client relationships—recognizing that these are long-term buyers and that the project faced delays starting from the COVID-19 pandemic. Believing it unreasonable to demand exorbitant fees from clients who already faced delays, we adjusted our request to a fair level that remains fully aligned with contractual provisions. How was the additional payment calculated, and what financial adjustments were made to assist buyers? From The Reporter Magazine From Unwilling Investors to Bidding Wars: Ethiopia’s T-Bill Market Turns on Its Head Published on 2026-09-03 By Mahlet Mehdi Competition, Trapped Funds, and Connectivity: Aviation Guru on Realities in a Fast-Evolving Industry Published on 2026-09-05 By Yared Nigussie Behind Ethiopia’s Stalled Iron Ore Mining Published on 2026-08-29 By Bewket Abebe The Myth of International Currency Reserves in Sub-Saharan Africa (SSA) Published on 2026-08-16 By Mussie Delelegn Arega (PhD) To support our clients and preserve goodwill, we calculated the additional square-meter payments based on the exchange rate active when the contracts were signed—1 USD to 31.20 Birr—rather than the current exchange rate of 160 or 170 Birr. Initially, we proposed a rate of around 58 Birr; however, following client requests to align the calculation with the exchange rate at the time of purchase, we accepted their feedback and adjusted it to 31.20 Birr. To put this in perspective, while other real estate developers demand up to 1.5 million Birr for a 15-square-meter difference, we requested approximately 1 million Birr for an additional 40 to 50 square meters. Furthermore, we offered flexible payment schedules, allowing clients to make partial payments of 300,000, 400,000, or 500,000 Birr to take delivery of their units while securing the necessary time to settle remaining balances. Why was this floor area difference not communicated to buyers earlier in the construction phase? We did not anticipate such a significant square-meter variance beforehand. We discovered the difference only after design completion, actual measurement verification, and title deed processing. As soon as the title deeds were issued and the details became clear, we contacted the clients, inviting them to meet and discuss the area variance. Based on these discussions, many clients negotiated, reached agreements, and took possession of their homes. We were unable to communicate earlier simply because the exact variance was unknown at the time. Once identified, however, we maintained continuous communication. Although a few individuals responded aggressively—threatening to tarnish our reputation and file lawsuits—we had no reason to hide. We responded to written inquiries and held two-hour in-person meetings alongside company executives. While a few parties held political motives or personalized the issue, we successfully reached a mutual understanding with the majority of our clients. What is the current status of the Signal project and the ongoing handovers? At our site near Signal Setoch Adebabay, all 160 units are fully finished, complete with fitted kitchen cabinets and wardrobes. To date, nearly 50 to 60 clients have settled the additional payment, taken delivery of their homes, moved in, or are currently finalizing title deed transfers. Homebuyers are paying their remaining balances and moving in, and we maintain smooth communication with them. Is the delayed or court-litigated project strictly limited to the site around Signal/Aware, or are there others? If they are delayed, what is the reason? Delays have impacted projects across sites due to broader macro-level challenges experienced since 2012 E.C., including the northern conflict, the COVID-19 pandemic, and acute foreign currency shortages that hampered imports of critical construction materials. Site-specific issues also contributed—such as a boundary dispute with a neighboring property at one location and municipal Corridor Development work that required integrating our infrastructure into the city’s main public sewage line. That connection remains pending completion by the government, after which our systems will be fully integrated. Some clients claim prices were increased due to area size discrepancies, foreign exchange rates, or enlarged common area spaces. What is the reason behind this, and were price increases applied across all sites? The valuation adjustments applied across all sites. Our contracts do not contain price-escalation clauses, and we did not raise initial prices despite massive material cost surges—such as local cement rising from 400 Birr to over 2,000 Birr per bag, and rebar increasing tenfold from 35 Birr to over 300 Birr per 20kg. Most buyers who settled their balances early did so before the macroeconomic forex reforms. Following the currency floating, the valuation of units adjusted, but we provided a 17% discount to assist buyers who had not completed their payments. The clients involved in litigation are those who defaulted on their payment schedules. The additional fees they cite stem from exchange rate adjustments—costs we had already prepaid for imported materials—and government title deed measurements that incorporate proportional common areas. Furthermore, we drilled deep-water wells for infrastructure at no additional charge to the buyers. Some buyers argue that if Noah Real Estate had not delayed the projects when forex rates were low, the units would have been finished before the currency adjustment, accusing the company of intentional delays to inflate prices. How do you respond? The physical units were completed three years ago, before the exchange rate reforms took effect. The delay in handover for these specific buyers was caused by their own payment defaults, as well as external municipal delays tied to the public sewage network. Under the contract, buyers were supposed to have only a 5% remaining balance at this stage. However, over 80 buyers at the Signal site alone fell significantly behind schedule. Rather than canceling their contracts outright, we exercised patience due to national financial constraints and restricted bank lending. Those who paid on schedule received their units without issue; those raising claims are individuals who defaulted on their agreed payment timelines. Regarding the site behind Flamingo, buyers reported confusion over signing contracts with Yekatit Paper Products rather than Noah Real Estate. Are Yekatit and Noah sister companies? There is no reason for confusion. The title deed, contracts, and payment receipts are all registered under Yekatit Paper Products PLC. The confusion arose because both entities engage the same independent sales agency operating out of rented office space in our building. While they are legally separate entities, there are shared family ties between the owners. However, the Flamingo project belongs entirely to Yekatit Paper Products, not Noah Real Estate. The project is also built on site of Yekatit. What are the names of the sales agencies handling these units? The third-party sales agencies are Sewite and Black Prom. They are independent entities operating under contractual agreements with no corporate ownership ties to Noah. Noah has outsourced all the sales and marketing operations to this sales agency. The sales agency also handles Yekatit’s site. Since these houses were completed three years ago, when do you expect full delivery? Delivery is actively underway, with residents already moving in and around 60 clients currently fitting out and furnishing their apartments. Utility connections—including water and electricity—are fully operational. How many housing units have you constructed and delivered to date? What is the group’s corporate structure? To date, we have constructed and delivered over 12,000 housing units, with approximately 1,500 units currently under active construction, excluding new pipeline developments. Regarding corporate structure, Z Plc and Great Abyssinia are distinct entities sharing common family ownership, encompassing brands like Abyssinia Water, Abyssinia Coffee, SNV, Adey Abeba Real Estate, Yekatit, and Noah Real Estate. In line with updated commercial legislation, these entities are currently restructuring into a unified holding company. Our doors remain open to resolve all outstanding buyer disputes through direct dialogue, written communication, or out-of-court settlements. What is the progress on your upcoming pipeline developments across the city? How many projects are currently in progress, and how many are nearing completion? We currently have several developments underway across multiple sites. The projects nearing completion and scheduled for handover next year include nearly 500 housing units around the Wosen Grocery area, selected completed units undergoing handover in Megenagna near Egziabher Ab Church, and a development of over 250 units in Bole Medhanealem. In terms of projects under active construction, two major structures known as “Noah Grand Collection” (or Noah Grand Centre) are being built near the Convention Centre area opposite CMC homes. Nearby at Salite Mihret/Gurdshola, opposite the former Beshale/Royal Hotel, an apartment project featuring over 500 units has reached around the 8th floor. This site is being developed by our sister company, which previously built and delivered over 1,000 housing units in the Figa area. Finally, for our upcoming mega-project along the VIP Highway on the way from the airport to Goro near the bridge, we have finalized the design for over 2,500 housing units on a 10,000-square-meter plot. Site clearing, permit applications, administrative procedures, and agent engagements are actively underway, with construction set to officially begin in 2019 E.C.