Djibouti Unveils $480 Million “Salaam City” Housing Project to Address Rising Urban Demand
Djibouti City, Djibouti — On Monday, Djibouti President Ismail Omar Guelleh inaugurated a landmark $480 million housing project, Salaam City, signaling a major step toward addressing the country’s growing housing needs. The ambitious initiative, led by Salaam Real Estate, aims to transform 2.4 million square meters of land on the outskirts of Djibouti City into a vibrant urban community, complete with schools, healthcare facilities, mosques, and commercial centers.
The launch ceremony, held in the Nagaad district, saw President Guelleh inspecting newly constructed model homes and laying the foundation stone for the project’s main construction phase. Officials underscored that Salaam City represents one of the largest housing developments in Djibouti’s history, with plans to deliver over 7,000 housing units spanning affordable, mid-range, and high-end options.
Mustafe Liban, General Manager of Salaam Real Estate, hailed the project as a response to Djibouti’s rapid transformation. “Djibouti is changing in ways people can feel,” he said, emphasizing the country’s expanding infrastructure and increasing global connectivity. “Salaam City is designed to meet that moment.”
The Horn of Africa nation has emerged as a critical logistics and trade hub along the Red Sea, attracting significant investment in ports, railways, and transport networks. This economic boom has driven demand for modern housing, particularly among urban professionals and a burgeoning middle class. Salaam City seeks to cater to this diverse demographic by offering a self-contained mini-city with all essential amenities.
Access to financing has been identified as a key factor in the project’s success. Salaam African Bank, a key partner, will provide Islamic financing options to support homeownership. Jama Hirsi, the bank’s General Manager, highlighted the importance of making housing not just available but accessible. “Building houses is one thing. Making them possible to own is another,” he said, pledging support for both developers and prospective buyers.
The project is expected to create approximately 2,000 jobs during the construction phase, with the first residents slated to move in by 2028. This aligns with Djibouti’s broader Vision 2035 strategy, which seeks to leverage the country’s strategic location to drive long-term economic growth and improve living standards.
In his inauguration speech, President Guelleh emphasized the dual goals of expanding housing access and generating employment. “Djibouti’s development should be measured not only by the scale of its ambitions, but by its ability to improve the daily lives of its citizens,” he said.
With a price tag of approximately 85 billion Djibouti Francs, Salaam City represents a significant investment in the nation’s future. As Djibouti continues to solidify its role as a regional trade powerhouse, projects like Salaam City underscore the government’s commitment to ensuring its citizens reap the benefits of economic progress.
— Reported by Nexio News
