The disaster happened early on Wednesday at around 05:00 local time (02:00 BST) in Addis Ketema, one of the busiest neighbourhood’s in Addis Ababa, local media reported.
Nigatu Mamo, a spokesperson for the local authoritie, told the BBC the deceased include children aged four, 11 and 12.
“The victims lost their lives due to lack of air,” Mamo added.
Reports say the police have launched an investigation to determine the cause of the collapse.
It is not the first time the area has experienced an incident of this kind – in 2022 at least six people died and seven others were injured after a building fell in Merkato, one of Africa’s biggest open markets.
Experts have said that poor quality structures and weak regulations are likely to have caused the buildings to collapse.