Djibouti bets on Salaam city to grow real estate sector

Djibouti’s President Ismail Omar Guelleh will on Monday launch one of the country’s largest housing projects as Africa increasingly looks to the real estate sector to soar up growth.

The $480 million Salaam City has 7,496 units that include homes, schools, healthcare facilities among other amenities. The project combines competitive housing options with flexible financing solutions developed in partnership with Salaam African Bank.

Billed as a gem-changer, the project also offers opportunities for local and international investors, including the Djiboutian diaspora, to contribute to the country’s budding real estate sector.

“The city is properly designed to make homeownership accessible and affordable for families across Djibouti,” Mustafe Liibaan, the General Manager of Salaam Real Estate, said in a press release issued ahead of the Monday launch.

As Djibouti continues to strengthen its role as a regional economic and logistics hub, Mr. Liiban said the project fully aligns with the country’s vision for modernization and urban expansion in a new economic dispensation that consider the real estate an economic enable.

Beyond housing, the development is expected to drive significant economic activity, with workforce mobilization projected to reach up to 2,000 people on site during peak construction periods across construction, engineering and technical sectors.

“Our goal is to create a community where everyone can enjoy quality housing, modern amenities, and a safe environment for their families to grow,” Mr. Liiban added.

Salaam Real Estate develops real estate projects that support urbanization. By structuring urban growth and creating a new residential center, local observers say, the project will meet help in Djibouti’s growing housing demand while supporting the country’s demographic and economic ambitions in a continent yearning for economic takeoff.

Djibouti’s real estate sector is smaller compared to Kenya’s but increasingly strategic. With a limited land mass and population, development has historically been modest.

However, large-scale projects such as Salaam City signal a shift to structured expansion and modern housing solutions.

Kenya’s real estate sector is among the most dynamic in Africa, driven by rapid urbanization, a growing middle class, and strong demand for residential and commercial property.

Cities such as Nairobi have become regional property hubs, attracting both local and international investors.

The sector is diversified, spanning high-end developments, affordable housing projects, retail spaces, and office parks.

Government-backed initiatives, including affordable housing programmes, have further stimulated growth, although challenges such as high construction costs, financing gaps, and oversupply in some segments persist.