In brief
- On January 3, 2016, Goobjoog News reported a housing boom in Mogadishu driven by returning diaspora Somalis and wealthy businessmen.
- The Daru Salaam Real Estate project outside Mogadishu had almost 50 houses ready, with a plan to build 500 homes in the first stage, according to a bank representative.
- The report does not establish what has happened to the project since January 2016.
Contents
On January 3, 2016, Goobjoog News reported a housing boom in Mogadishu as the city emerged from decades of conflict. The report attributed the boom to returning diaspora Somalis and newly wealthy businessmen capitalizing on relative peace.
Daru Salaam Estate: Progress and Plans
The report's centerpiece was the Daru Salaam Real Estate project, located about seven kilometres outside Mogadishu in a formerly largely rural area. According to builders cited by Goobjoog News, almost 50 houses were ready on the estate at the time of the report. Construction began in early 2015, according to the same report.
Mohamed Abdullahi Ali, from Salaam Somali Bank, said the bank backed the project, which he described as an estimated $20 million (18 million euro) development. Ali said the plan was to build 500 homes in the first stage, covering the residential needs of 500 families, with more houses to follow. The bank's involvement was described as a "great honour" by Ali.
Marketing, Security, and Buyer Testimony
Fuad Ahmed Warsame, marketing director of Daru Salaam Real Estate, said the company's plan was to build a new neighbourhood with a good environment and new designs. Warsame also stated that security on the estate was "very good" and that there had been no problems. The company is headquartered in central Mogadishu's Bakara Market.
Abdiqadar Jimale Roble, 34, who grew up in Sweden from the age of 12, said he returned to buy a new home in the Daru Salaam neighbourhood and that the houses are well built. Sadia Sheikh Ahmed said she and her relatives bought eight homes, initially intending to buy two, scheduled to be completed soon.
Wider Context and Unverified Claims
The Goobjoog News report juxtaposed the housing activity with broader economic and humanitarian indicators. According to the World Bank, Somalia's GDP per capita was just $284 against a sub-Saharan Africa average of $1,300. The World Bank also said development indicators were among the lowest in the world and that Somalia was heavily dependent on aid and remittances.
The UN Office for the Coordination of Humanitarian Affairs (OCHA) reported that over 308,000 children were acutely malnourished and that humanitarian needs remained vast. OCHA said Somalia was on a positive trajectory after more than two decades of violence and political instability, while warning that the trend occurred amid a precarious humanitarian and security situation. The report noted that car bombs and assassinations were still common and that a 22,000-strong African Union force fought alongside the army.
Frequently asked questions
How many housing units were under construction at Daru Salaam in January 2016?
According to builders cited by Goobjoog News, almost 50 houses were ready on the estate at the time of the report, with construction having begun in early 2015.
Who were the buyers at the Daru Salaam estate?
The report cited Abdiqadar Jimale Roble, a returnee from Sweden, and Sadia Sheikh Ahmed, who said she and relatives bought eight homes. These are individual testimonies, not a comprehensive buyer profile.
What role did diaspora investment play in the Mogadishu housing boom?
Goobjoog News reported that the economic boom was driven by returning diaspora Somalis and newly wealthy businessmen, with the Daru Salaam estate promoted as a more secure place for returnees to live.