Profile of Real Estate Sector in Somalia

Somalia’s real estate sector is one of the growing sectors in the economy considering the fact that the country is has been facing a challenge of civil wars since 1991. There are few apartments and residential houses constructed especially in Mogadishu.

Characteristics Real Estate Sector

  • There are no banks which specialize in mortgage finance
  • The sector does not have residential estates
  • There are few office blocks around the city
  • There are still too few players in the sector

Market for real estate sector in South Sudan

The key drivers for demand for property development include the following

  • Political stability that has created a conducive environment that has attracted foreigners to do business in Somalia

Investment opportunities in the sector

  • Provision of equipment and building materials
  • Provision of low cost housing for urban areas
  • Provision of mortgage finance
  • Construction of residential estates
  • Construction of apartments and other premises

Challenges

  • Inadequate mortgage financing
  • High cost of financing
  • Lack of adequate and well trained manpower to manage the sector
  • Few players in the sector

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