Regulatory body. The lack of proper regulations has made it extremely difficult for potential buyers to get a clear picture of the market, as prices are often inflated and there is no organized system in place to manage the rental or buyer’s market. This has resulted in a situation where buyers must rely on their own instincts to make judgment. The property sector in Somalia is in dire need of regulation in order to protect the rights of buyers and sellers, as well as to ensure that real estate transactions are conducted in an orderly manner. Currently, there is no unified system of land registration, meaning that many disputes over ownership remain unresolved.
The property boom in Somalia is likely to be short-lived due to the instability and lack of infrastructure in the country. Property prices have been rising rapidly in recent years, but this trend is unlikely to continue for long as the market is too volatile and unpredictable.
Economic assistance, helping or hurting the Somalia economy.?
According to Somalia.un.org, “Somalia received US$2 billion in official development assistance (ODA) in 2020, consisting of roughly equal amounts of humanitarian and development aid.”
In general, economic assistance can have a positive impact on the property economy in Somalia by stimulating economic growth, creating jobs, and increasing demand for property. For example, if economic assistance is provided to small businesses, they may be able to expand their operations, which can increase the demand for commercial real estate. Similarly, if economic assistance is provided to individuals or families, they may be able to afford to purchase or rent better housing, which can increase demand for residential real estate.
The country’s economy is largely dependent on foreign aid and remittances, making it vulnerable to external shocks. Therefore, while there may be some short-term gains from investing in property in Somalia, it is unlikely to be a long-term investment opportunity.
As Somali’s we must develop a recognised valuation system. This will help to ensure that property owners are able to receive a fair market valuation for their properties and, in turn, that the Somali economy is able to benefit from increased investment. The development of a valuation system for Somalia should include the creation of a system of professional appraisers and assessors who are licensed and trained to accurately determine the value of land and property. This system should also include the establishment of clear guidelines and standards for valuation, as well as a code of ethics governing the conduct of appraisers and assessors. Additionally, a system of public records should be established to ensure that the values assigned to properties are fair and accurate. Finally, an appeals process should be put in place to allow property owners to dispute the valuation of their property if they feel it is unfair or inaccurate.
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