Housing Finance in Somalia


This profile is also available in French here.

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

Somalia has a population of 15.8 million people, with rural areas accounting for 60% of the population. Urban housing supply isn’t enough to meet rising housing demand or close the two million-unit housing gap, which is getting bigger.

Somalia’s GDP in 2020 was $7,628 million, with a per capita income of $502, rising 2.9% in 2021. The recovery from the COVID-19 pandemic increased GDP and per capita spending by 1.1%. Almost 70% of the population has a daily income of less than $1.90.

Access to financing or credit is a key stumbling block for most people in Somalia who want to build or buy a property. Because the government hasn’t put much effort into regulating housing, the private sector has taken over the housing market, the construction industry, and the property development market.

As more Somalis are displaced annually, the demand for affordable housing increases. The high prices of property in the city centre, which are driven by insufficient supply and rising demand, demonstrate this.

In order to make affordable housing better able to deal with the effects of climate change, new building technologies that make it easier to adapt to its effects must be researched and used.

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

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