Housing Finance in Djibouti


This profile is also available in French here.

To download a pdf version of the full 2019 Djibouti country profile, click here.

Djibouti is located in the Horn of Africa, bordering the countries of Somalia and Eritrea. Located along the Gulf of Aden and the Red Sea, Djibouti features one the busiest shipping routes connecting Africa, Europe and Asia. The country’s deep-water port is ideal for refuelling and transhipment. Djibouti’s GDP in 2018 was US$ 1.19 billion equating to a GDP per capita (PPP) of US$ 3 139. This growth is expected to increase by seven percent in 2019 and accelerate to eight percent in 2020-2023.

The country’s population, estimated at 888 017 in 2018 is one of the smallest in mainland Africa. Over 75 percent of Djibouti’s population lives in urban areas, mainly in Djibouti City. The country also experiences high migration rates from neighbouring countries of Yemen and Somalia. Some of the challenges facing spatial development in the country are unplanned housing and a shortage of basic amenities to meet this demand. Considering the high levels of migration, the country needs to provide adequate infrastructure to serve its citizens, and an additional estimated 60 000 refugees, asylum seekers and immigrants.

Unemployment is relatively high, with more than 42% of the population living in extreme poverty. With such high rates of unemployment and poverty, decent housing remains out of reach for the bulk of Djibouti’s population, particularly considering house purchase and rental prices in the country. However, thought poverty and unemployment rates are high, Djibouti has a stable inflation rate of eight percent and a stable foreign exchange rate.

The World Bank projects a positive economic outlook for Djibouti, driven by the government’s strategy to position the country as a regional trade, logistics and digital hub. Djibouti has been identified as one of the economies that have made significant improvements in the ‘Doing Business’ environments, having made positive policy reforms in the time taken to register property sale agreements, and through the digitisation of the country’s Land Registry. Additionally, the Djibouti International Free Trade Zone (DIFTZ), which was inaugurated in 2018, is Africa’s biggest trade zone, expected to create nearly 35 000 new jobs annually. This could create higher demand for housing in the country, and poses opportunities for investing in housing.

Find out more information on the housing finance sector of Djibouti, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2019 edition, which has up-to-date profiles for 55 African countries.

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Neighbouring Countries Eritrea Ethiopia Somalia
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