Commercial Projects

Chaka Housing Project Starts In Addis With $520m Deal

The project is part of Chaka Satellite City in the Yeka Hill district.

Updated on

August 2, 2025

The much-awaited Chaka Housing Project in Addis Ababa has been set in motion following the signing of a multi-million dollar deal to build 4,100 housing units in the Ethiopian capital.

Signed on July 3 between Ethiopia’s Ministry of Finance and several builders, the deal marks the first phase of a $520 million housing venture under a public-private partnership (PPP).

A total of 4,175 housing units will be built as part of the Chaka Housing Project, making it the second-largest housing scheme in the country after the Integrated Housing Development Programme, which has delivered about 500,000 units since 2006.

The project, which includes the construction of a ‘National Palace’, is part of Chaka Satellite City – a 503-hectare urban development in the Yeka Hill district of northeastern Addis.

The estimated cost of the entire project ranges between $2.2 billion and $3.7 billion.

According to the project’s master plan, the ‘National Palace’, set on a hilltop, will include the president’s official residence, a ‘Sky View Hotel’, and guesthouses for visiting dignitaries.

The design of the Chaka Housing Project was partially undertaken by two Addis-based architectural firms: Habar Architects and Zorite Architects.

The project will be executed through a 70:30 financing model and will involve several developers, including Ovid Real Estate, ICE Housing Development Consortium PLC, the state-owned Ethiopian Construction Works Corporation (ECWC), and other private firms.

Ovid Real Estate will develop 1,823 housing units and a shopping mall under the Tiyit Bet Housing Development Program at an estimated cost of $31.11 million.

Its subsidiaries, Ovid Chaka Housing Development PLC and Ovid Kings Tower PLC, have signed two deals to construct 3,675 housing units at a combined cost of $198.13 million.

ICE Housing Development Construction PLC has signed a $234.28 million deal to build a six-story shopping mall that includes 1,200 housing units.

Boston Partners PLC has signed a $5.89 million deal to build 50 luxury lodges and related infrastructure at the Awash Waterfall Resort Tourism Destination Development Project.

Meanwhile, MIDROC Investment Group is expected to invest about $0.90 million in tourism infrastructure at the Denbi Lake Lodge Destination Development Project.

Abebe Gebrehiwot, who heads the PPP Department at the Ministry of Finance, said in a press statement that both public and private developers were selected through a merit-based process.

“The government invited 11 companies to express interest, and six were selected based on technical, financial, and legal evaluations,” he said. “We selected developers based on their past experience with similar projects, financial capacity, and compliance with required standards.”

Abebe disclosed that 14 housing projects are planned under the Chaka Housing initiative, with contracts for three already awarded and the remaining 11 set to be allocated at a later stage.

The official defended the selection of Ethiopian Construction Works Corporation, which has faced scathing criticism for repeated delays and failure to meet project timelines.

“ECWC previously completed eight residential buildings at a cost of $5.79 million. It was selected for this project due to its experience and partnership with private developers,” he said.

As part of the deal, developers will finance 20% of the project costs from their own pocket and secure the remaining 80% through commercial bank loans and other means.

The Ethiopian government will provide land for construction free of lease charges, along with access to electricity, water, and additional support services.