Housing in Djibouti

Djibouti’s housing market combines formal and informal forms of housing. Households rent or buy privately, acquire serviced plots and build for themselves, use social housing, or use models such as a rent-to-own arrangement (location-vente), in which rental payments may be linked to a later transfer of ownership. A long-term land lease (Emphytéose) can also be a functional alternative to an immediate purchase. Informal settlements are particularly important in and around Djibouti City and Balbala. Programs such as the neighborhood-improvement program (Zéro Bidonville) improve residential areas, develop roads, support land titling, and relocate households from high-risk wadis; poor households, refugees, internally displaced persons, and host communities may also benefit. The Ministry of the City, Urban Planning and Housing (Ministère de la Ville, de l’Urbanisme et de l’Habitat) develops government housing, urban-development, and land policies. The social-housing and neighborhood-renewal agency (ARULOS) builds social housing and rehabilitates disadvantaged neighborhoods. The land-development and parceling agency (SIAF) develops and subdivides state land and equips it for residential construction. The housing fund (Fonds de l’Habitat) offers, among other things, serviced plots, very low-income housing, and materials loans. The General Directorate of Domains and Land Conservation (Direction Générale des Domaines et de la Conservation Foncière) maintains land registers and issues land titles. The Housing and Urban Planning Directorate (Direction de l’Habitat et de l’Urbanisme) handles building permits and compliance, while municipalities handle municipal procedures. For a private rental, the parties may conclude a written or oral lease. A deposit may be agreed by contract and may not exceed two months’ rent. Rent and rent-revision clauses are generally freely negotiable. Without a specific clause, an adjustment because of inflation above 10 percent may take place no earlier than after two years and may not exceed the documented inflation rate. Subletting is permitted unless the contract excludes it; it generally may not exceed the main rent, except for furnished housing or documented improvements. The landlord must hand over the dwelling, maintain its usability, ensure peaceful enjoyment, and repair major damage as well as damage caused by wear or defects. The tenant pays the rent, uses the dwelling according to the contract, and handles minor repairs and routine care. In an urgent repair, the tenant may in some circumstances act independently and claim reimbursement. If a repair lasts more than 30 days, a proportional rent reduction may arise; if the dwelling becomes uninhabitable, the tenant may terminate the lease. For non-payment, an automatic termination clause takes effect only one month after an unsuccessful formal notice or formal payment order (commandement), and a court may grant up to three months to pay. A tenant in good faith (bona-fide occupant) generally retains the dwelling after at least one year through the right to remain in the premises (maintien dans les lieux) and tacit renewal (tacite reconduction). Termination generally requires three months’ notice by an extrajudicial instrument (acte extrajudiciaire) or bailiff (Huissier). The tenant generally does not need a specific reason, while the landlord needs a legally recognized reason. For the landlord’s own use, three months’ notice applies, the use must begin within two months, and the intended use must last at least one year; otherwise, compensation of at least one year’s rent may be due. For a purchase, the sale should be registered in the land registers. A land title (Titre Foncier) protects ownership and is also effective against third parties. Construction or major renovations may require a simplified building permit (Permis de Construire Simplifié) from the Housing and Urban Planning Directorate. The application includes, among other things, a registration certificate (Certificat d’inscription), a site or cadastral plan, and proof of the materials tax; the stated processing time is seven days. A General Certificate of Conformity (Certificat de Conformité Générale) may then be required, taking into account, among other things, alignment, hygiene, electrical installation, earthquake safety, and the building permit. Social housing is allocated by government or authorized bodies after application, review, and allocation. A general rule refers to Djiboutian nationality, a minimum age of 18, employment, monthly income below 100,000 FDJ, and no house or land ownership in the local administrative unit. The actual criteria depend on the project; lists may be published, and selection may take place through a public lottery. In the program with 540 dwellings, criteria included residence in Djibouti City, a minimum age of 21, formal employment, income of 60,000 to 150,000 FDJ, no land title, no rent-to-own contract, no temporary occupation permit (Permis d’Occupation Provisoire), and at least 20 years of remaining service. These conditions applied to that project and are not a general access rule. The housing fund may finance very low-income homes through a loan that later leads to ownership. One documented self-build program included, for example, a 27-square-meter house with one room, a kitchen, sanitary facilities, a septic tank, and an enclosure; materials were supplied in three stages, and the loan ran for 20 years at 1 percent with support from housing cooperatives. This example is not a uniform nationwide benefit. Since 2023, World Bank funding has supported, among other things, partial mortgage credit guarantees, housing microfinance, the conversion of rent-to-own arrangements into mortgages, and climate-resilient self-build; availability and access depend on the relevant project. The reviewed research does not establish a uniform current government rent index, a general public rental-housing register, or universal rental assistance. Current rents, construction costs, allocation criteria, and regional procedures must therefore be checked locally before renting, buying, building, or applying.