Housing Finance in Djibouti


This profile is also available in French here.

To download a pdf version of the full 2023 Djibouti country profile, click here.

Djibouti is a small, arid country in the Horn of Africa with a population of approximately 957 273 people.An estimated 78% of the population lived in urban areas in 2021, making it one of the most urbanised countries in the world. Despite the country’s economic performance being on an upward trajectory, Djibouti continues to grapple with housing issues and the expansion of informal settlements or slums.

Djibouti has one of the lowest loan rates in the Horn and Sub-Saharan Africa, giving great real estate finance prospects. Kenya, the region’s largest economy, has loan rates of 12% and 7%. Low loan default rates may be due to poor, biased credit procedures. In 2020, Djibouti had 2.12% non-performing loans, while the global average was 6.6% based on 121 countries.

Djibouti is prone to flash floods, earthquakes, multi-year droughts, and fires. 70% of its population lives in the capital city, which is vulnerable to climate change and rising sea levels. Floods destroy buildings and highways, worsening the country’s severe poverty rates. The World Bank, UN-Habitat, and other UN agencies helped Djibouti improve the housing and settlement sector by evaluating climate change damage. Despite the recorded devastation of homes and infrastructure, there is little indication that victims get compensation.

Djibouti is one of the Horn of Africa’s most stable and peaceful nations. The country’s stability is an excellent investment opportunity, particularly given the region’s upheaval. Major infrastructure investments in the nation will not only stimulate economic activity, but will also offer crucial shared infrastructure that will benefit investors. Djibouti has a plethora of real estate companies and estate agents to assist the market. Real estate transaction taxes and land conservation incur fixed costs. Salaam African Bank is ready to finance up to 70% of the value of residential properties over a five-year period. When it comes to property ownership, men and women enjoy equal rights. In the city centre, the government usually gives streamlined construction permission.

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 2023 edition, which has up-to-date profiles for 55 African countries.

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