Salaam City launch sets pace for Djibouti’s real estate growth

Djibouti on Monday had a groundbreaking ceremony for Salaam City, its largest residential development project valued at $480 million.  

President Ismail Omar Guelleh led government officials and representatives from Salaam Real Estate at the launch of the project, seen as a key milestone in the country’s urban expansion.

The development is part of the broader Salaam Group portfolio, which continues to expand its footprint across East Africa and beyond through ventures like Salaam Bank Uganda, Salaam Investment Bank and Salaam Microfinance Bank in Kenya.

The group also operates in South Sudan and Malaysia and holds a majority stake in Takaful Insurance. With more than 7,000 residential units, including apartments and standalone houses, Salaam City is designed as a fully integrated community offering a mix of housing options.

The project incorporates energy-efficient construction, eco-friendly materials and expansive green spaces. It will also feature essential social infrastructure, including schools, healthcare facilities, a central mosque, commercial centres and recreational areas to support a vibrant community life.

The city adopts an inclusive approach to urban development by combining competitively priced housing with flexible financing solutions developed in partnership with Salaam African Bank. It also opens investment openings for local and foreign investors, including the Djiboutian diaspora.

“Djibouti’s development should be measured not only by the scale of its ambitions, but by its ability to improve the daily lives of its citizens,” President Guelleh said, adding: “By expanding access to quality housing, generating employment opportunities and building modern, inclusive communities, initiatives like Salaam City invest in the well-being of our people and the future of our nation.”

As Djibouti strengthens its position as a regional economic and logistics hub, the project, sector experts say, aligns with its broader vision for modernization and urban growth. It is expected to ease housing demand while supporting the country’s demographic and economic ambitions.

The development is also projected to generate major economic activity, with up to 2,000 workers expected on site during peak construction across engineering, construction and technical sectors.

“Salaam City is designed to make homeownership accessible and affordable for families across Djibouti,” said Mustafe Liiban. “Our goal is to create a community where everyone can enjoy quality housing, modern amenities and a safe environment for their families to grow.”

Salaam Real Estate officials said on Monday that their focus is to deliver modern, sustainable developments that support urbanisation and economic growth, contributing to the transformation of Djibouti’s housing landscape.

Mr Jama Hersi, the General Manager of Salaam Africa Bank, said financing remains central to the project’s success. “This vision only works if finance runs through the entire project,” he said. “Building houses is one thing; making them possible to own is another. Our role is to back this project from the ground up, from investment to financing, so that families don’t just see homes being built but have a real chance to buy one.”