Risk Mitigation Strategies and Performance of Real Estate Industry in Mogadishu: A Case Study of Dahabshiil Bank Dahab Tower Project

The real estate industry in Mogadishu, Somalia, continues to face significant challenges due to various risks, including financial, operational, and environmental uncertainties. This study explores the impact of risk mitigation strategies on the performance of real estate projects, using the Dahabshiil Bank Dahab Tower—a 26-floor high-rise mixed-use development—as a case study. Despite the growing importance of managing risks in large-scale developments, little research has been conducted on how strategies such as risk retention, risk transfer, risk prevention, and risk control influence project outcomes in the Somali context. Using a descriptive research design, the study targeted 135 project personnel, with a sample of 102 respondents selected through Slovin’s formula. Primary data was collected through self-administered questionnaires. The analysis revealed a positive and significant relationship between the identified risk mitigation strategies and project performance indicators such as cost control, timely delivery, quality standards, and stakeholder satisfaction. The results were consistent with previous studies in similar contexts, confirming that robust risk management enhances project performance. The findings underscore the need for structured, context-specific risk mitigation approaches within Somalia’s real estate sector. The study contributes valuable insights for real estate developers, policymakers, and project managers in improving decision-making, optimizing resource allocation, and ensuring the successful implementation of future developments in Mogadishu. Finally, the study concludes that risk mitigation is not merely a protective mechanism but a strategic tool that directly contributes to the success of real estate projects. As demonstrated by the Dahab Tower case, embracing comprehensive risk mitigation practices is critical for fostering sustainable development in Mogadishu’s growing real estate sector.