Investment Property in Djibouti

Investment Real Estate in Djibouti

Djibouti property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Djibouti .

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Search Map of Djibouti Investment Real Estate

Coordinates:

11°30′N 43°00′E / 11.500°N 43.000°E / 11.500; 43.000

Djibouti, officially the Republic of Djibouti, is a country located in the Horn of Africa. It is bordered by Somaliland in the south, Ethiopia in the southwest, Eritrea in the north, and the Red Sea and the Gulf of Aden in the east. Across the Gulf of Aden is Yemen. The country has a total area of 23,200 km² (8,958 sq mi).

In antiquity, the territory together with Ethiopia, Eritrea and Somaliland was part of the Land of Punt. Nearby Zeila, now in Somaliland, was the seat of the medieval Adal and Ifat Sultanates. In the late 19th century, the colony of French Somaliland was established following treaties signed by the ruling Dir Somali sultans with the French and its railroad to Dire Dawa (and later Addis Ababa) allowed it to quickly supersede Zeila as the port for southern Ethiopia and the Ogaden. It was subsequently renamed to the French Territory of the Afars and the Issas in 1967. A decade later, the Djiboutian people voted for independence. This officially marked the establishment of the Republic of Djibouti, named after its capital city. The new state joined the United Nations the same year, on 20 September 1977. In the early 1990s, tensions over government representation led to armed conflict, which ended in a power-sharing agreement in 2000 between the ruling party and the opposition.

Djibouti is a multi-ethnic nation with a population of over 921,804 inhabitants (the smallest in mainland Africa). French and Arabic are the country’s two official languages, Afar and Somali are national languages. About 94% of residents adhere to Islam, which is the official religion and has been predominant in the region for more than a thousand years. The Somalis and Afar make up the two largest ethnic groups, with the former comprising the majority of the population. Both speak the Cushitic branch of the Afroasiatic languages.

Djibouti is strategically located near some of the world’s busiest shipping lanes, controlling access to the Red Sea and Indian Ocean. It serves as a key refuelling and transshipment center, and is the principal maritime port for imports from and exports to neighboring Ethiopia. A burgeoning commercial hub, the nation is the site of various foreign military bases, including Camp Lemonnier. The Intergovernmental Authority on Development (IGAD) regional body also has its headquarters in Djibouti City.

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The financial stability of Djibouti has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Djibouti

Renting out your Djibouti buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Djibouti are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Djibouti and be prepared to change your initial outlook.
Thoroughly research the Djibouti location with a special emphasis on fringe areas outside the main Djibouti metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Djibouti.
Ensure that your target investment property in Djibouti appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Djibouti properties yourself is an easy option, but are these savings justifiable when you run into Djibouti red tape? Physis Realty Djibouti office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Djibouti buy-to-rent sector.

With our expert guidance, investing in Djibouti provides the secure knowledge that your money is working harder than it would in a local Djibouti bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Djibouti, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Djibouti property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Djibouti

Flipping property in Djibouti

Flipping property is when we advise clients to buy a Djibouti property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Djibouti market has a time to react to the renovation.

The Flipping Strategy in Djibouti

Investment property flipping in Djibouti is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Djibouti real estate investments are sometimes referred to by professionals as ‘distressed’ Djibouti real estate.

What is distressed Djibouti property:

Djibouti property in need of renovation
Djibouti real estate with a change of purpose and use
Oversold Djibouti property
Bank repossessions in Djibouti

Put simply, long term investors in Djibouti purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Djibouti investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Djibouti property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Djibouti use a minimum profit value of 22% when looking at potential Djibouti projects. The reason for this is because there are lots that can go wrong in Djibouti property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Djibouti

For luxury property investors hoping to add a superb property in Djibouti to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Djibouti, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Djibouti should be entrusted to only the highest-quality agency.

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