There has been tremendous growth in the real estate sector in Mogadishu. Both high end and affordable residential properties are coming up in every corner of the city, mixed use property that contain both commercial and residential houses such as self-contained villages and apartment blocks are the norm in the city and large scale development like the 14 storey hotel coming up by the beach are no longer raising eyebrows. This should be good news, but it is not entirely so.
Of late, property prices in the city have doubled and tripled and done many other things except go reduce. Majority of the local city residents, foreign investors in the country and diaspora investors are worried about the steep cost of owning property in the city. Many delay the dream of owning property as they source for capital. For the people who rent houses or villas or office space, the monthly rent is burdensomely high.
As real estate investment in Mogadishu increase and the demand for housing is met, princes will go down. At the moment, high prices are the words on buyer’s lips. Figures from different sources indicate that a 1 bedroom apartment in Mogadishu City averagely goes for $66 per month, while the same 1 bedroom outside the city goes for $28 per month, a slightly lower charge. A 3 bedroom apartment at the city center goes for $500 per month, while the same goes for $100 outside the city.
Utility costs are high compared to what utility bills cost in other world cities. Basic electricity in Mogadishu is anything from $35 to $48 a month on an 85 square meters of an apartment. This bill is high due to the high electricity needs of the city such as cooling. Garbage disposal costs, water and heating drive up utility bills.
In city hotels, a Bed and Breakfast single deluxe room goes for $50-bed, one or two chairs and other room amenities, a double room goes for $70-bed, sitting area with a sofa set and other hotel amenities-and a family room goes for $100, with a sofa set sitting area, four or three beds and other amenities.