South Sudan’s economy is in a dire state, marked by high inflation, a devaluing currency, and widespread poverty. For many citizens, everyday survival is a challenge, with incomes stretched thin to meet basic needs. These economic hardships have left a noticeable mark on the real estate sector, especially in the hospitality and luxury housing markets.

The country’s economic instability has caused a sharp decline in purchasing power, making it difficult for people to afford goods, let alone luxury experiences. As a result, hotels, high-end apartments, and upscale serviced residences, which once targeted international businesspeople and wealthier locals, are struggling to attract enough clientele to remain profitable.

Inflation, which has been steadily rising, has pushed prices of basic commodities to unreachable levels for the average citizen. The South Sudanese pound has lost significant value, and with it, the affordability of services and goods. Many potential tenants and customers simply cannot afford the steep costs associated with high-end properties. For instance, some hotels in Juba charge upwards of $300 per night, while mid-range apartments can cost between $1,000 to $2,500 per month. These prices, once feasible for expatriates and wealthier locals, are now out of reach for most, leading to under-occupied buildings across the capital.

In 2023, it was reported that the occupancy rate in several luxury apartments and hotels dropped below 50%, with some properties even recording vacancy rates as high as 60%. This underutilization presents a major financial strain on property owners, who are now grappling with maintaining their investments in a market that has become increasingly uncertain.

While new luxury developments continue to pop up, aimed at attracting NGOs, foreign investors, and affluent tenants, many existing high-end properties are left largely empty. These new projects, although visually impressive, highlight the growing disparity between what the market offers and what the majority of South Sudanese citizens can afford.

For the country to recover, developers must take these economic realities into account and shift their focus toward affordable housing solutions. The luxury market, while impressive, simply cannot sustain itself without a broader customer base that matches the needs of everyday citizens. If this imbalance continues, it could deepen the crisis, with more real estate investments sitting idle while the people of South Sudan struggle to secure basic necessities.

In this economic climate, a reevaluation of priorities in the real estate sector is essential for long-term growth. Without addressing the immediate needs of the population, the potential for growth in South Sudan’s real estate market remains limited.