Djibouti Launches $480 Million ‘Salaam City’ Housing Project to Meet Rising Demand
DJIBOUTI CITY — President Ismail Omar Guelleh has inaugurated a major residential development, “Salaam City,” a $480 million project aimed at addressing acute housing demand fueled by Djibouti’s rapid economic expansion.
The initiative, spearheaded by Salaam Real Estate, will transform a 2.4 million-square-metre site on the outskirts of the capital into a planned community. Valued at approximately 85 billion Djibouti Francs, the project is among the nation’s largest housing initiatives and is slated to deliver over 7,000 residential units.
Speaking at the ceremony in the Nagaad district, President Guelleh inspected model homes and officiated the start of main construction. He emphasized that expanding housing access and job creation are central to improving living standards and national stability. “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 stated.
The development is designed as a self-contained urban hub, integrating schools, healthcare clinics, mosques, commercial centres, and recreational areas. This integrated approach aims to serve a broad demographic, offering a mix of affordable, mid-range, and high-end housing within a single community.
Financing support will be provided by Salaam African Bank, which will offer Islamic financing options to facilitate homeownership. “Building houses is one thing. Making them possible to own is another,” said Jama Hirsi, the bank’s general manager, noting that access to finance is critical for the project’s success.
Authorities project the construction phase will generate about 2,000 jobs, with the first residents anticipated to move in by 2028.
The project aligns with Djibouti’s national “Vision 2035” strategy, which leverages the country’s strategic position on the Red Sea to drive long-term growth. Significant prior investment in ports, railways, and transport networks has established Djibouti as a key logistics and trade hub, attracting international business and a growing urban professional class, thereby intensifying demand for modern housing.
Salaam City represents a substantial step in the government’s effort to provide structured urban expansion to accommodate this growth and support the nation’s socioeconomic development goals.
