Investment Property in Harar

Investment Real Estate in Harar

Harar property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Harar .

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Search Map of Harar Investment Real Estate

Harar (Amharic: ሐረር; ጌይ Gē “the City”, Oromo: Harar, Arabic: هرر‎) is a walled city in eastern Ethiopia. It is known in Arabic as the City of Saints (Arabic: مدينة الأَوْلِيَاء‎).

Harar is the capital of the East Hararghe Zone and the capital of the Harari Region of Ethiopia. The city is located on a hilltop in the eastern extension of Oromia, about five hundred kilometers from the seat of federal Government and Oromia’s capital Addis Ababa at an elevation of 1,885 metres (6,184 ft). Based on figures from the Central Statistical Agency in 2005, Harar had an estimated total population of 122,000, of whom 60,000 were male and 62,000 were female. According to the census of 1994, on which this estimate is based, the city had a population of 76,378.

For centuries, Harar has been a major commercial center, linked by the trade routes with the rest of Ethiopia, the entire Horn of Africa, the Arabian Peninsula, and, through its ports, the outside world. Harar Jugol, the old walled city, was listed as a World Heritage Site in 2006 by UNESCO in recognition of its cultural heritage. Because of Harar’s long history of involvement during times of trade in the Arabian Peninsula, the Government of Ethiopia has made it a criminal offence to demolish or interfere with any historical sites or fixtures in the city. These include stone homes, museums and items discarded from war. According to UNESCO, it is “considered ‘the fourth holiest city’ of Islam” with 82 mosques, three of which date from the 10th century, and 102 shrines.

Yahyá Naṣrallāh’s Fatḥ Madīnat Harar, an unpublished history of the city in the 13th century, records that the Qadi Abadir Umar ar-Rida and several other religious leaders settled in Harar c. 1216 (612 AH). Harar was later made the new capital of the Adal Sultanate in 1520 by the Sultan Abu Bakr ibn Muhammad. The city saw a political decline during the ensuing Emirate of Harar, only regaining some significance in the Khedivate of Egypt period. During the Ethiopian Empire, the city decayed while maintaining a certain cultural prestige.

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The financial stability of Harar has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Harar

Renting out your Harar buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Harar are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Harar and be prepared to change your initial outlook.
Thoroughly research the Harar location with a special emphasis on fringe areas outside the main Harar metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Harar.
Ensure that your target investment property in Harar appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Harar properties yourself is an easy option, but are these savings justifiable when you run into Harar red tape? Physis Realty Harar office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Harar buy-to-rent sector.

With our expert guidance, investing in Harar provides the secure knowledge that your money is working harder than it would in a local Harar bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Harar, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Harar property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Harar

Flipping property in Harar

Flipping property is when we advise clients to buy a Harar property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Harar market has a time to react to the renovation.

The Flipping Strategy in Harar

Investment property flipping in Harar is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Harar real estate investments are sometimes referred to by professionals as ‘distressed’ Harar real estate.

What is distressed Harar property:

Harar property in need of renovation
Harar real estate with a change of purpose and use
Oversold Harar property
Bank repossessions in Harar

Put simply, long term investors in Harar purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Harar investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Harar property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Harar use a minimum profit value of 22% when looking at potential Harar projects. The reason for this is because there are lots that can go wrong in Harar property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Harar

For luxury property investors hoping to add a superb property in Harar to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Harar, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Harar should be entrusted to only the highest-quality agency.

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