When Farah Ahmed returned to Hargeisa after 12 years in Dubai, he expected to find a decent family home within weeks. Six months later, he was still living with relatives. The few modern homes available were either overpriced or in areas lacking water and electricity. “I had the money to buy,” he recalls, “but nothing was suitable for a family of four.”
Farah’s story is not unique. Across Somaliland, a quiet housing crisis is affecting returning diaspora, young professionals, and growing families alike.
A Perfect Storm: Why Demand Is Surging
Three major forces are reshaping Somaliland’s housing landscape:
- Youthful Population: With 68% of Somaliland’s 4.5 million people under 30, an estimated 45,000 new households form annually. Only 12,000 formal housing units are built each year.
- Urban Growth: Hargeisa’s population has nearly doubled since 2010. Burao and Berbera are expanding rapidly, driven by internal migration and infrastructure development.
- Diaspora Investment: Over $200 million flows into Somaliland from abroad each year — and around 30% goes into real estate. These buyers bring new expectations: modern design, secure compounds, and reliable utilities.
- Shifting Preferences: Younger families increasingly seek independence from traditional extended-family compounds, preferring standalone homes with privacy and modern conveniences.
Why Traditional Building Isn’t Enough
Drive through any city and you’ll see it: half-finished homes, patchwork neighbourhoods, and informal settlements with little infrastructure.
The old method — buy land, build slowly over time — no longer works at scale. Challenges include:
- Inconsistent Quality: Many homes are built without proper foundations or standard materials.
- Poor Infrastructure: Streets flood, power systems fail, and water delivery is unreliable.
- Limited Security: Unplanned areas often lack lighting, gates, or neighbourhood coordination.
Today’s families need more than a roof — they want a secure, well-serviced, modern living environment.
Financing: The Big Barrier
Home financing in Somaliland remains informal. Mortgages are practically non-existent, and most homes are bought with savings or informal loans. Meanwhile:
- Construction costs have risen 40% since 2020, with most materials imported.
- Land prices in key neighbourhoods have more than doubled in the past five years.
- Clear title documentation still varies, making land acquisition difficult.
Even families with income struggle to afford modern homes under the current system.
How Developers Like Sidra Are Changing the Game
A new generation of developers is offering a better path — combining design, construction, and community planning into one package.
Sidra Homes is part of this shift. Developments like Safa Housing and Berbera Townhouses offer:
- Completed homes with fixed pricing, reliable delivery, and full finishing.
- Expandable homes that grow with the family — starting with a bungalow and adding floors over time.
- Gated communities with 24/7 security, water systems, drainage, and shared amenities.
“We realized families wanted predictability,” a Sidra team member explains. “They don’t want to manage 10 contractors — they want to know what they’re buying and when it’ll be ready.”
Looking Ahead: A Market in Transition
The housing transformation is bigger than any one company:
- Urban planning is improving: Local governments are supporting formal development to boost tax revenues and service delivery.
- Diaspora confidence is growing: Trust in modern real estate offerings is increasing.
- Infrastructure is following: Roads, schools, and utilities are being extended to new residential zones.
Sidra and others aren’t just selling homes — they’re shaping the future of Somaliland’s neighbourhoods.
Final Thoughts: The Opportunity Ahead
Somaliland’s cities are growing — and so is the demand for modern housing. But this is more than just a market opportunity.
For diaspora returning home, young couples starting families, or investors looking for long-term value — now is the time to act.
Sidra’s approach shows what’s possible when trust, design, and quality come together. The next chapter in Somaliland’s housing story is unfolding now — and those who get in early will help shape what comes next.