AbstractPurpose –Real estate is one of the fundamentalgrowth engines for developing economies as it contributesurbanization and infrastructure development. In recent years, Somalia has witnessed massive real estatedevelopmentin both housing and commercial buildings. Thepurpose of this study is twofold. First, the studyexamines the determinantsof residential property rents. Second, it investigates whether residentialpropertyrents are fairlyvalued.Design/methodology/approach –This study uses two-stage modeling.A hedonic regression model isused in the f‌irst stage, whileanartif‌icialneural network is applied in the second stage.Findings –After analysis, this study establishedthat size, location and security of a residential propertyhave a signif‌icant inf‌luenceon its monthly rents. Alternatively, the study identif‌iedthat residential propertyrents are notfairly valued in Mogadishu and overvaluationis more frequent than undervaluation.Originality/value –This implies that Somalia’s real estateindustry is more speculative-driven than realdemand-driven. ThoughSomali real estate is an infant industry with huge potentials in the long run,it mayend up disastrously following the well-known bubble-then-burst behavior. To avoid such crisis, this studyrecommends formulating government policies that regulates, supervises and protects the infant real estateindustrywithout undermining the needs of the poor andlow-income citizens.Keywords Housing, Housing affordability, Housing prices, Residential property, Macroeconomics,Valuation, Monthly rents, Mogadishu, Real estate