Table of Contents
- Overview of Djibouti’s Legal Framework for Real Estate
- Key Government Authorities and Their Roles
- Land Ownership: Rules, Restrictions, and Rights
- Recent Legislative Updates (2024–2025)
- Foreign Investment: Entry Requirements and Compliance
- Taxation and Real Estate Transactions
- Permits, Licensing, and Zoning Regulations
- Common Disputes and Legal Remedies
- Key Statistics and Market Trends (2025–2028)
- Future Outlook: Anticipated Reforms and Strategic Opportunities
- Sources & References
Overview of Djibouti’s Legal Framework for Real Estate
Djibouti’s legal framework for real estate is shaped by a blend of French civil law tradition and local statutes, with key reforms ongoing to accommodate the country’s growing role as a commercial and logistical hub in the Horn of Africa. The principal sources of real estate law are the Code Civil and the Code Foncier, which regulate property ownership, land registration, leasing, and transfer of real estate rights. The Ministry of Habitat, Urban Planning and Environment oversees land administration and urban development, while the Ministry of Justice and Penitentiary Affairs ensures compliance with legal standards in property transactions and dispute resolution.
Ownership of land in Djibouti is primarily regulated by a state ownership model. Under the Code Foncier, all land is owned by the state, and private parties may obtain land through long-term leases, typically up to 99 years, rather than outright freehold purchases. Foreign investors are eligible to acquire leasehold interests under the same conditions as nationals, reflecting Djibouti’s open stance toward international investment. Registration of property rights is mandatory and managed by the Service Public, which maintains the national land registry and related public records.
Recent years have seen a push toward digitalization and transparency. The government has initiated reforms to streamline land registration and reduce processing times, including pilot programs for electronic documentation and decentralized service delivery. As of 2025, compliance with anti-money laundering (AML) and beneficial ownership disclosure requirements is being strengthened, in line with recommendations by international bodies and Djibouti’s own commitments under the Financial Action Task Force (FATF) framework (Service Public).
- All land lease agreements and transfers must be registered with the national registry to be legally enforceable.
- Real estate transactions may require approval from the Ministry of Habitat, Urban Planning and Environment for compliance with zoning and development regulations.
- Foreign leaseholders are subject to the same procedural requirements as domestic parties, ensuring a level playing field.
According to the Ministry of Habitat, Urban Planning and Environment, the number of registered leasehold transactions has increased steadily, driven by infrastructure projects and foreign direct investment in logistics and port facilities. Challenges remain in reducing informal land occupation and resolving legacy disputes, but ongoing reforms are expected to improve legal certainty and efficiency. The outlook for 2025 and beyond is for further modernization of the legal framework, enhanced property rights protection, and greater alignment with international best practices, supporting Djibouti’s vision as a regional gateway for trade and investment.
Key Government Authorities and Their Roles
The regulatory framework for real estate law in Djibouti is shaped by a network of key government authorities, each tasked with specific roles in land management, property registration, urban planning, and legal compliance. Their coordinated activities are critical to the development and transparency of the real estate sector, particularly as Djibouti continues to attract foreign investment and implements modernization initiatives through 2025 and beyond.
- Ministry of Habitat, Urban Planning, and Environment: This ministry oversees national policy and regulation regarding land use, urban development, building permits, and zoning. It is responsible for the implementation of the National Urban Development Plan, which guides the expansion of urban areas and ensures compliance with environmental standards. The Ministry also issues construction permits and monitors adherence to land-use regulations, which are key for real estate developers and investors. (Ministère de l’Habitat, de l’Urbanisme et de l’Environnement)
- Ministry of Economy and Finance: This ministry plays an essential role in property taxation, registration of property transactions, and the enforcement of property rights. Through the Directorate General of Taxes and Domains, it manages the land registry (cadastre), oversees property transfers, and maintains up-to-date records of property ownership—a process that has been undergoing digitalization to improve efficiency and reduce fraud. (Ministère de l’Économie et des Finances)
- Djibouti Notary Public: Official notaries are legally mandated to oversee and validate all real estate transactions, including property sales, leases, and mortgages. Their role is to ensure the legality of transactions, authenticate documents, and prevent disputes. Notaries work closely with both the Ministry of Justice and the Ministry of Economy and Finance to ensure compliance with national statutes. (Ministère de la Justice, des Affaires Pénitentiaires, chargée des Droits de l’Homme)
- Courts of Djibouti: Judicial bodies, especially the Tribunal de Première Instance, have jurisdiction over disputes related to land, property rights, and contractual enforcement. Legal proceedings concerning real estate are subject to the Civil Code and relevant special statutes. The judiciary also plays a pivotal role in interpreting new legislation and precedent as the real estate market evolves. (Ministère de la Justice, des Affaires Pénitentiaires, chargée des Droits de l’Homme)
Looking ahead, ongoing projects to modernize the land registry and streamline property transfer processes are central priorities. These reforms are expected to enhance transparency, reduce transaction times, and foster greater investor confidence in Djibouti’s real estate sector through 2025 and beyond.
Land Ownership: Rules, Restrictions, and Rights
Land ownership in Djibouti is governed by a legal framework that reflects both the country’s civil law heritage and its strategic economic ambitions. The primary legislation regulating real estate is the Code Foncier (Land Code), which outlines the processes for acquiring, registering, and transferring land rights. In recent years, Djibouti’s government has actively promoted clarity and transparency in land transactions to attract foreign investment and support national development goals.
One of the defining features of Djibouti’s land law is the distinction between private and state ownership. The state retains ownership of most land, granting long-term leases (bail emphytéotique) rather than outright freehold rights, especially to foreign entities or individuals. These leases typically last up to 99 years and can be renewed, providing security and transferability akin to ownership while preserving ultimate state control. Private ownership is primarily reserved for Djiboutian nationals, and direct acquisition by foreigners is subject to stringent approval processes and often limited to specific economic zones or development projects.
Recent reforms have emphasized the digitalization of land records and the streamlining of property registration procedures. The Ministère de l’Habitat, de l’Urbanisme et de l’Environnement has implemented initiatives to reduce registration times and improve the accuracy of land titling, aiming to mitigate long-standing issues such as overlapping claims and informal settlements. According to government data, the average time to complete property registration has been reduced to approximately 30 days as of late 2024, compared to 90 days five years prior.
Foreign investors are required to comply with additional regulatory scrutiny. Approval from the Agence Nationale pour la Promotion des Investissements is mandatory for any significant land transaction involving non-Djiboutian parties. Investment-friendly zones, such as the Djibouti Free Trade Zone, have their own bespoke regulations, allowing for more flexible land use and longer lease terms to incentivize international business activity.
Compliance remains a central concern. All transactions must be formally notarized and registered with the Ministère de la Justice et des Affaires Pénitentiaires to be legally effective. Failure to comply with registration or zoning requirements can result in annulment of contracts or administrative penalties. The government continues to tighten enforcement against unauthorized land use, particularly in urban areas where demand is highest.
Looking ahead to 2025 and beyond, ongoing legal modernization and infrastructure projects are expected to further enhance transparency and security in land ownership. The government’s stated objective is to harmonize land laws with international best practices, balancing economic openness with national sovereignty and social stability. These reforms are likely to sustain investor interest while gradually expanding the scope of private land rights in select sectors.
Recent Legislative Updates (2024–2025)
In recent years, Djibouti has undertaken significant steps to modernize its real estate legal framework, aiming to attract foreign investment and improve the ease of doing business. The period from 2024 to 2025 has seen several notable legislative updates and regulatory initiatives impacting property transactions, land tenure, and compliance requirements.
A cornerstone of recent reform is the continued implementation of the Code Foncier et Domanial (Land and State Property Code), which is periodically updated to reflect changing economic priorities. In early 2024, the government initiated amendments to this code to clarify procedures for land acquisition, strengthen protections for title holders, and streamline the process of property registration. These changes are designed to address historical gaps in land titling and to reduce the prevalence of informal land transactions, a longstanding challenge in Djibouti’s urban and peri-urban areas (Presidency of Djibouti).
Another significant legislative update in 2024 was the revision of foreign ownership regulations. The government has reaffirmed its policy allowing foreign entities to acquire real estate under specific conditions, particularly within designated investment zones such as the Djibouti Free Zone and the Damerjog Industrial Park. However, the updated law imposes stricter due diligence and reporting obligations on foreign buyers to enhance transparency and prevent money laundering, in line with recommendations from the Central Bank of Djibouti and regional anti-money laundering frameworks.
Compliance requirements have also evolved. Notably, the Guichet Unique (One-Stop Shop) for property registration has been further digitalized in 2024, cutting average registration times from several weeks to a matter of days. This move is part of Djibouti’s broader e-government strategy and is expected to increase the percentage of formally registered land transactions, which stood at approximately 40% in 2023, toward the government’s target of 70% by 2026 (National Investment Promotion Agency of Djibouti).
Looking ahead, legislative priorities for 2025 include the anticipated introduction of a unified real estate tax system and enhanced dispute resolution mechanisms within the Ministry of Justice. These reforms are projected to further align Djibouti’s real estate sector with international standards, increasing investor confidence and supporting the country’s ambition to serve as a regional commercial and logistics hub.
Foreign Investment: Entry Requirements and Compliance
Djibouti’s real estate sector continues to attract foreign investment, facilitated by its strategic location at the crossroads of Africa and the Middle East. As of 2025, the entry requirements and compliance obligations for foreign investors in Djibouti’s real estate market are primarily governed by the Code Foncier et Domanial and several decrees issued by the government, ensuring a regulated investment environment.
Foreign individuals and entities may purchase and lease real estate in Djibouti, but certain restrictions apply. Land ownership remains vested in the state, and property can generally only be acquired via long-term leases (typically up to 99 years), rather than outright freehold ownership. All real estate transactions involving foreign nationals require prior authorization from the Ministry of Habitat, Urbanism, and Environment, with additional scrutiny for properties considered of strategic importance or located near borders or military installations (Presidence de la Republique de Djibouti).
- Due Diligence and Licensing: Foreign investors must conduct due diligence through the Centre de Formalités des Investissements de Djibouti (CFID), which acts as a one-stop shop for investment registration. Investors are required to obtain an investment certificate and adhere to sector-specific licensing, including environmental compliance for construction and development.
- Taxation and Fees: Property transactions are subject to registration fees, and leasehold agreements typically incur an annual land tax. Recent reforms have streamlined the process, but compliance with tax obligations is strictly enforced by the Direction Générale des Impôts (DGI) as part of efforts to increase fiscal transparency.
- Anti-Money Laundering: Compliance with anti-money laundering (AML) regulations is mandatory, overseen by the Banque Centrale de Djibouti. Real estate transactions above a certain threshold must be reported, and both buyers and sellers are subject to identity verification protocols.
Statistically, foreign investment in Djibouti’s real estate sector has shown moderate growth, with the government reporting a steady increase in approved property transactions since 2022, particularly in commercial and logistics-related developments (Agence Nationale de Promotion des Investissements).
Looking ahead to the next few years, the Djiboutian government is expected to maintain a cautious but welcoming stance towards foreign investment in real estate. Ongoing regulatory reforms aim to enhance transparency and investor protection, while ensuring state interests are safeguarded in strategic locations. Compliance with evolving regulations, particularly in AML and environmental areas, will remain critical for foreign investors seeking to enter Djibouti’s real estate market.
Taxation and Real Estate Transactions
Djibouti’s real estate sector is governed by a framework of laws and regulations designed to facilitate property transactions, ensure compliance, and generate public revenue through taxation. As of 2025, the principal legislation governing property ownership, transfers, and associated fiscal duties remains the Code Foncier (Land Code), alongside various tax statutes and decrees enacted by the Ministry of Economy and Finance.
Foreign nationals and companies may acquire and transfer real property in Djibouti, although certain strategic or coastal zones are subject to additional government scrutiny and restrictions. All land is formally owned by the state; long-term leases (emphyteutic leases, up to 99 years) are the primary vehicle for private and commercial real estate interests. Leasehold rights are fully transferable, subject to registration and the payment of applicable duties.
Real estate transactions in Djibouti are subject to several taxes and fees. The principal transaction tax is the droit d’enregistrement (registration duty), typically ranging between 5% and 10% of the property’s declared value, depending on the nature and location of the property. Transfers must be notarized and registered with the Ministère de l’Economie et des Finances (Ministry of Economy and Finance). Failure to register a property transfer can render the transaction void and expose parties to penalties.
For corporate investors, rental income derived from Djiboutian property is subject to corporate income tax, currently set at 25%. Individuals earning rental income are subject to personal income tax on a progressive scale. In addition, value-added tax (VAT) at a rate of 10% may apply to the sale of newly constructed commercial properties or certain services related to real estate development.
Compliance with anti-money laundering (AML) requirements is increasingly emphasized in property transactions. Notaries and financial institutions are required to conduct due diligence on parties and report suspicious transactions to the Banque Centrale de Djibouti (Central Bank of Djibouti), in accordance with Law No. 196/AN/17/7ème L on AML and combating the financing of terrorism.
Key statistics from the Ministère de l’Economie et des Finances indicate a steady rise in real estate transaction volumes since 2022, driven by urbanization and infrastructure projects. The government has signaled ongoing reforms to streamline registration and improve transparency in land administration, aiming to enhance the investment climate through 2025 and beyond. Further digitalization of land records and tax payment systems is projected, which should reduce compliance burdens and transaction risks for investors.
Permits, Licensing, and Zoning Regulations
Real estate law in Djibouti is shaped by a framework of permits, licensing, and zoning regulations that are central to property development, acquisition, and use. In 2025, these regulations remain governed primarily by national statutes and municipal ordinances, with oversight from the Ministère du Budget and the Présidence de la République de Djibouti, particularly under the Code Foncier (Land Code) and the Code de l’Urbanisme (Urban Planning Code).
All property development and construction activities require prior authorization. Land use and construction permits—locally known as “permis de construire”—are issued by municipal authorities in accordance with zoning plans that stipulate permissible activities within designated zones (residential, commercial, industrial, or mixed-use). The application process typically involves submission of architectural plans, proof of land ownership, environmental clearances, and payment of requisite fees. For larger-scale or foreign-funded projects, approvals from the Djibouti Ports & Free Zones Authority may also be necessary if located within special economic or free trade zones.
Licensing requirements apply to real estate professionals, developers, and agents. Entities engaging in real estate transactions, especially brokerage or property management, must be registered and licensed by the Ministère de la Justice. Compliance is regularly monitored, and violations can result in suspension or revocation of licenses. Recent government initiatives in 2023-2024 have emphasized digitalization of permit applications, aiming to reduce processing times and promote transparency, as outlined by the Agence Nationale pour la Promotion des Investissements (ANPI Djibouti).
Zoning regulations are periodically updated to accommodate urban growth, particularly in Djibouti City and key logistical corridors. The government’s 2035 Vision Plan highlights ongoing reviews of zoning laws to encourage mixed-use developments and infrastructure investments, in line with the anticipated population growth and expanding logistics sector. According to ANPI Djibouti, strict compliance with zoning is enforced to prevent unauthorized land use, a measure which has helped reduce disputes and illegal constructions in recent years.
Looking ahead, the outlook for 2025 and beyond includes further streamlining of permitting systems and greater integration of GIS mapping for urban planning. Authorities are expected to introduce clearer guidelines for environmental and social impact assessments in line with international best practices. With Djibouti’s strategic location and ongoing infrastructural projects, real estate law is anticipated to evolve in response to increased foreign investment and urbanization pressures, making compliance with permits, licensing, and zoning regulations even more crucial for stakeholders.
Common Disputes and Legal Remedies
Real estate law in Djibouti faces unique challenges, with common disputes centering on land ownership, lease agreements, inheritance, boundary demarcation, and issues arising from foreign investment. As Djibouti pursues ambitious infrastructure and port-related projects, the real estate sector has experienced an uptick in both transactional activity and legal contention, particularly in prime urban and coastal areas.
Key disputes frequently involve:
- Land Ownership and Title Registration: Ambiguities in land titles and overlapping claims are prevalent due to historic gaps in land registration systems. The Ministère de la Justice, des Affaires Pénitentiaires, Chargé des Droits de l’Homme oversees the resolution of such disputes, often requiring parties to present documentary evidence and historical records.
- Lease and Tenancy Conflicts: Disputes between landlords and tenants—especially regarding non-payment, eviction, and contract interpretation—are commonly adjudicated under the Djibouti Civil Code, which sets out the obligations and protections for both parties.
- Inheritance and Succession: Real estate inheritance cases often arise due to the interplay of customary, religious, and statutory law, leading to contested claims among heirs. The courts, guided by the Djibouti Civil Code and family law statutes, play a central role in adjudicating these cases.
- Foreign Investment and Expropriation: As Djibouti attracts increased foreign investment, disputes concerning land use, expropriation for public purposes, and compensation have grown. The Agence Nationale pour la Promotion des Investissements (ANPI) provides guidance on lawful acquisition and dispute resolution for investors.
Legal remedies in Djibouti typically include court-ordered restitution, damages, and, where appropriate, specific performance or contract termination. The court system is the primary venue for resolving real estate disputes, though parties may also seek mediation or arbitration, particularly in cases involving foreign investors or high-value assets. The Cour Suprême de Djibouti serves as the final appellate authority for significant property cases.
Looking ahead to 2025 and beyond, ongoing governmental reforms aim to modernize real estate law, including the digitization of land records and streamlining of dispute resolution mechanisms. These efforts are designed to enhance legal certainty, attract investment, and reduce the incidence of protracted disputes. Continued capacity building within the judiciary and administrative agencies is expected to further improve compliance and the enforceability of legal remedies in the sector.
Key Statistics and Market Trends (2025–2028)
The real estate sector in Djibouti is undergoing notable transformation, driven by legal reforms, infrastructural investments, and regional geopolitics. According to data from the Presidency of Djibouti, government-led infrastructure projects—such as the Doraleh Multipurpose Port and Djibouti International Free Trade Zone—continue to influence commercial and residential property demand. The Chamber of Commerce of Djibouti reports that, as of early 2025, urban real estate transactions have risen by an estimated 12% year-on-year, reflecting increased investor confidence and foreign direct investment, particularly from the Middle East and China.
The legal framework for real estate in Djibouti is anchored in the Code Foncier (Land Code), which has seen incremental updates to clarify land registration, ownership, and transfer procedures. The Ministry of Economy and Finance notes ongoing digitization of land registries aimed at streamlining compliance and minimizing disputes over property boundaries and title authenticity. This digital transition is expected to reduce transaction delays—previously averaging 60–90 days for title transfer—to as few as 30 days by 2026, according to projections by the Ministry of Urban Planning, Environment, and Housing.
Compliance requirements remain rigorous for both domestic and foreign investors. All real estate transactions must be notarized and registered with the Ministry of Justice, and foreign ownership continues to be regulated under specific investment codes. Recent years have seen the introduction of stricter anti-money laundering (AML) protocols, with real estate agents and notaries now required to report suspicious transactions to the Central Bank of Djibouti. This regulatory tightening aligns Djibouti’s practices with international standards and is anticipated to foster greater transparency in the sector.
- Urban residential property prices have increased by approximately 8% annually since 2023, with prime commercial rents in Djibouti City climbing by 10–15% over the same period (Chamber of Commerce of Djibouti).
- The majority of real estate investment (over 65%) is concentrated in Djibouti City and the port corridor (Presidency of Djibouti).
- New legislation on condominium ownership and strata titles is expected by late 2026, which should create more diversified investment opportunities (Ministry of Urban Planning, Environment, and Housing).
Looking ahead to 2028, experts anticipate further harmonization of real estate law with regional frameworks, increased digitization of processes, and a more robust compliance environment. These changes are likely to support sustainable growth, heightened investor protection, and improved access to property ownership in Djibouti.
Future Outlook: Anticipated Reforms and Strategic Opportunities
Looking ahead to 2025 and beyond, Djibouti’s real estate legal landscape is poised for notable transformation as the government seeks to balance foreign investment, urban development, and regulatory modernization. The country’s strategic position at the crossroads of major shipping lanes and its role as a logistics and trade hub have prompted increased interest from international investors, placing pressure on existing real estate laws to evolve accordingly.
Key reforms anticipated in the near future include the streamlining of property registration and the reinforcement of land tenure security. Djibouti’s government has publicly acknowledged the need to reduce bureaucratic bottlenecks and strengthen legal protections for both domestic and foreign investors. This is evidenced by ongoing consultations and policy reviews led by the Presidency of the Republic of Djibouti and the Ministry of Economy and Finance. Planned initiatives aim to digitize land records, clarify titling procedures, and ensure greater transparency in property transactions.
A significant driver for reform is the country’s ambition to attract broader foreign direct investment beyond the logistics and port sectors. According to the Djibouti Ports and Free Zones Authority, real estate within free zones has seen steadily rising demand, spurring calls for clearer legal frameworks to support sustainable commercial and residential development. In 2023, the government reported issuing over 2,000 new property titles, a figure expected to grow by 10-15% annually through 2026 as reforms take effect.
Compliance remains a focal point, particularly with regard to anti-money laundering (AML) and counter-terrorism financing standards. Djibouti’s authorities are working in conjunction with the Central Bank of Djibouti to bolster real estate transaction monitoring and enforce stricter due diligence requirements on property transfers. These measures are designed to align national practices with evolving regional and international norms, reducing legal and reputational risks for foreign investors.
Looking forward, the outlook for real estate law in Djibouti is one of cautious optimism. Legislative modernization, improved administrative efficiency, and enhanced compliance frameworks are likely to unlock new strategic opportunities in commercial, industrial, and residential real estate. However, stakeholders operating in this jurisdiction should closely monitor regulatory developments and engage with competent authorities to ensure ongoing compliance and to capitalize on new market openings as reforms are implemented over the next few years.
