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Rebuilding Mogadishu: The Rise of Affordable Housing Estates in Somalia’s Capital

Rebuilding Mogadishu: The Rise of Affordable Housing Estates in Somalia’s Capital

Somalia, a country once ravaged by two decades of civil war, is experiencing a remarkable transformation in its real estate sector. After years of instability and destruction, Mogadishu, the capital city, is witnessing a surge in housing development, driven by the return of diaspora Somalis and the influx of investment from newly wealthy businessmen. This article explores the emergence of affordable housing estates in Mogadishu and the impact they have on the city’s rebuilding efforts.


The Daru Salaam Estate:

One of the most notable housing developments in Mogadishu is the Daru Salaam estate, located 7 kilometers outside the city center. This project, backed by an estimated $20 million investment from Salaam Somali Bank, aims to provide affordable homes for Somalis looking to move out of the densely populated neighborhoods of Mogadishu. The estate, which is planned to have 500 homes in its first stage, offers a secure and family-friendly environment for residents, including those returning from abroad.

Diaspora Investment and Homeownership:

The Daru Salaam estate has attracted significant interest from diaspora Somalis, who see it as an opportunity to invest in their homeland and be part of its progress. Many have returned to Somalia to purchase homes in the estate, with some even helping their relatives abroad acquire properties as well. The availability of affordable housing options has made it easier for Somalis to own a home in their country, fostering a sense of belonging and investment in the nation’s future.

Challenges and Opportunities:

Despite the progress made in housing development, Somalia still faces significant challenges, including a precarious humanitarian and security situation. The country remains heavily dependent on aid and remittances, with development indicators among the lowest in the world. However, the rise of affordable housing estates like Daru Salaam represents an opportunity for Somalia to rebuild and provide its citizens with access to decent living conditions.

The Role of the Private Sector:

The private sector has played a crucial role in the development of affordable housing in Somalia. Companies like Salaam Somali Bank have invested heavily in projects like the Daru Salaam estate, demonstrating their confidence in the country’s future. This private sector involvement has been instrumental in creating jobs, stimulating economic growth, and providing much-needed housing solutions for Somalis.


The rise of affordable housing estates in Mogadishu is a testament to Somalia’s resilience and determination to rebuild. Despite the challenges, the country is on a positive trajectory, with the real estate sector leading the way. The Daru Salaam estate and similar projects offer hope for a better future, providing Somalis with the opportunity to own a home and be part of the nation’s progress. As Somalia continues to rebuild, the real estate sector will undoubtedly play a crucial role in shaping the country’s future and improving the lives of its citizens.


Real Estate Somalia

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