Housing Finance in Somalia


Somalia has a limited housing finance sector. As the mortgage market does not yet meet the breadth of the population who might afford a mortgage, most households still finance their housing independently, with savings or non-mortgage credit.

Instability has limited the development of a housing market, while data on the sector is limited. According to Datagrid Somalia, in 2015, the average house price per square meter was US$ 250. The average rental price for a formal unit was US$ 500, the average plot size is 400 square metres, and the price of the cheapest newly built house built by a developer in Somalia is US$ 100 000. With a good macroeconomic environment, sound policy, better data and increased access to affordable credit, an enabled housing market can increasingly provide housing that the average household in Somalia can afford.

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

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2018 edition, which has up-to-date profiles for 54 African countries.

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