Djibouti's Salaam city eyes slice of Africa's housing boom

President Ismail Omar Guelleh (right) is shown the Salaam Real Estate masterplan. [Courtesy]

Djibouti President Ismail Omar Guelleh on Monday led the groundbreaking for Salaam City, a project seen as one of Africa’s biggest symbols of the continent’s evolving urban identity.

With Kenya continuing with its affordable housing project, observers say Djibouti is opening up the real sector for investment by local and foreign investors, including its diaspora.

The President led senior government officials and representatives from Salaam Real Estate during the launch, saying priority should be the “wellbeing of our people.”

The development is part of the broader Salaam Group portfolio, which continues to expand its footprint across East Africa and beyond through ventures like Salaam Bank Uganda, Salaam Investment Bank and Salaam Microfinance Bank in Kenya. The group also operates in South Sudan and Malaysia and holds a majority stake in Takaful Insurance. With more than 7,000 residential units, including apartments and standalone houses, Salaam City is designed as a fully integrated community offering a mix of housing options.

Social infrastructure

The project incorporates energy-efficient construction, eco-friendly materials and expansive green spaces. It will also feature essential social infrastructure, including schools, healthcare facilities, a central mosque, commercial centres and recreational areas to support a vibrant community life.

The city adopts an inclusive approach to urban development by combining competitively priced housing with flexible financing solutions developed in partnership with Salaam African Bank.

“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,” President Guelleh said, adding: “By expanding access to quality housing, generating employment and building modern, inclusive communities, initiatives like Salaam City invest in the well-being of our people and the future of our nation.”

Salaam Africa Bank General Manager Jama Hersi said financing remains central to the project’s success. “This vision only works if finance runs through the entire project,” he said.

“Building houses is one thing; making them possible to own is another. Our role is to back this project from the ground up, from investment to financing, so that families don’t just see homes being built but have a real chance to buy one.”