This week, private and state-owned developers signed contracts that are worth 67 billion Birr that will enable the construction of more than 4,100 housing units in Addis Ababa under the ‘Chaka Housing Project’.
The venture agreement, entails the construction of the controversial ‘New Palace’ on a hilltop flanking the capital’s northeast. This project is part of a broader 72 billion birr housing initiative under a public-private partnership (PPP). Furthermore, it was officially signed on July 3, 2025, between the Ministry of Finance and various real estate companies.
Also read: Facts about Chaka Project, the second biggest public project in Ethiopia
Chaka Housing Project Factsheet
Project name: Chaka Housing Development Project
Location: the project is located mainly in Addis Ababa, Ethiopia, specifically in Yeka Sub-City on the Yeka hill. Additionally, it encompasses the Tiyit Bet areas.
Cost: the overall cost of the project is expected to range from 49 billion Birr to 300-400 billion Birr.
Key components and scope:
Housing Units: A significant number of housing units are planned.with initial contracts signed for over 4,100 units and a broader target of nearly 10,000 units across 14 projects.
New Palace” / Main National Palace: The also entails the construction of a controversial “New Palace” on a hilltop flanking the capital’s northeast.
Luxury Hotel: Additionally, a luxury “Sky View Hotel” is part of the Chaka Housing Development Project.
Retail and commercial spaces: The project will also include the establishment of retail space, shopping malls, and common business centers.
Infrastructure:
- There will be road networks that stretch over 29 km.
- Three artificial lakes will be built.
- Underground parking facilities will be developed.
- Necessary utilities such as electricity and water.
- Integrated diagnostic service center will be built to ensure health of the residents is catered for.
Community facilities: these community facilities will entail daycare and kindergarten facilities, an open park, a view deck, and recreational areas.
Green spaces: this will ensure a strong focus on environmental sustainability.
According to a statement that was released following the signing, 4,175 housing units will be constructed as part of the Chaka Housing Development Project.
Developers of the Project
The project will be implemented through a 70/30 financing arrangement and will involve several developers, including ICE Housing Development Consortium PLC, Ovid Real Estate, the state-owned Ethiopian Construction Works Corporation (ECWC), and other private companies.
The housing units will be built on 24 hectares of land, with a total cost of 67 billion Birr.
Also read: Chaka Project, second biggest public project in Ethiopia, underway
