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Recognizing the importance of housing sector in developing countries and in improving the living conditions of the population, the Government of the Republic of Djibouti has prepared a plan of action to boost this sector which is instructed by the Ministry of Housing, Planning, Environment and Spatial Planning and the Djibouti Realty Estate Company (SID).

Incentives for investment in this area and particularly the field of social housing were adopted as the tax exemption of imported building materials, and other incentives. Thus achievements have emerged thanks to the assistance of partners concerned with the development of the country, including international and pan-Arab Fund for Development, which has enabled the Government through the real estate company in Djibouti ‘SID’, achieve 1st phase a new city of 842 dwellings and 2nd phase development of 642 housing starts. However, demand for housing continues to rise due to objective factors such as revitalizing the economy and its openness and population growth.

In the Republic of Djibouti where over 85% of the population lives in cities whose economy is based primarily on service activity concentrated in metropolitan Djibouti, the urban importance as it has often been advanced the concept of city state.

Of an estimated population of 800 000 inhabitants over 500 000 mainly reside in the capital and suburbs Riparian BALBALA. With an average annual growth of around 4.5% resulting from both the combined effects of population growth and internal migration importantly, the housing needs are estimated at more than 2,000 new units per year.

Substantial efforts in recent years by the government and its development partners have reduced poverty and extreme urban poverty but major efforts must be undertaken to eradicate poverty and extreme poverty and its social consequences hampering development.
So to overcome this situation, the Government has set targets consistent:
  • To manage urbanization and to promote balanced urban development through the creation of common whose role also coaching people, but also an urban organization and planning of the development of cities
  • To improve the lives of people in poor neighbourhoods and foster their access to basic services by carrying out a program of social housing on the steps planned in collaboration with financial partners concerned with the economic and social developments of the republic of Djibouti
  • Programming for completion in phases with the assistance of institutions concerned with development of social housing in the capital and profits to inland districts of families with low income

The Kuwaiti investor, National Real Estate Company (NREC), programs an important port city project. It should include two mid-range hotels, clinics, shopping malls...

The Republic of Djibouti encourages qualified companies with local and foreign experiences in the field of realization of housing estates, servicing and construction to participate in the performance of work.
The equipment, materials and equipment imported to Djibouti will be exempt from customs duties.