CHAMWE KAIRA
Namibia’s building sector closed the first half of 2026 on an improving note, with June delivering broad-based gains in both approval volumes and values.
Against a backdrop of elevated borrowing costs following the Bank of Namibia’s 25 basis point rate hike to 6.75% in June, persistent household affordability constraints, and subdued commercial activity, the residential and additions segments continue to lead the recovery.
“The sector’s underlying momentum remains divergent: plan volumes are running above prior-year levels, while cumulative approval values in Windhoek are materially below the distorted 2025 base that included a single N$1 billion project in March,” said Almandro Jansen of Simonis Storm.
In Windhoek, 197 building plans were approved in June, a 42.8% month-on-month recovery from 138 in May and the highest monthly approval count since March 2026. On a year-on-year basis, approvals rose 24.7% from 158 in June 2025.
The value of approved plans surged to N$197.8 million, up 47.7% month-on-month from N$133.9 million in May and 50.7% year-on-year from N$131.3 million in June 2025.
“The implied average value per approved project rose to approximately N$1 million, suggesting a shift toward higher-value residential developments. June’s recovery more than reversed May’s weakness, with volume and value both returning to levels consistent with the broader first-half trend,” said Jansen.
On a year-to-date basis through June, Windhoek has recorded 1001 approved building plans, 7.3% ahead of the 933 approvals over the same period in 2025.
Total year-to-date approval values stand at N$791.8 million, below the N$1.73 billion recorded in the first half of 2025 though the 2025 figure was heavily distorted by a single large-scale project in March worth
over N$1 billion.
Completions in Windhoek improved in June, rising to 25 projects from 21 in May, a 19% month-on-month gain. The value of completed works rose to N$54.6 million from N$37 million a 47.6% increase and nearly doubled year-on-year from N$27.7 million in June 2025.
Swakopmund recorded solid activity in June, with 78 building plans approved flat year-on-year but a 17.9% month-on-month decline from 95 in May.
Approval values moderated to N$70.3 million from N$132.2 million in May, though they remain 45.2% above June 2025 levels.
Completions rebounded sharply to 61 projects from 50 in May, with completion values surging to N$52.3 million from N$23.0 million a 127% monthly increase.
On a year-to-date basis, Swakopmund has approved 453 plans valued at N$458 million, versus 365 plans worth N$359.6 million in the same period of 2025 gains of 24.1% and 27.2% respectively, significantly outpacing Windhoek on both measures.
Jansen said year-to-date, Swakopmund is materially outpacing Windhoek in volume growth (+24.1% vs +7.3%) and value growth (+27.2%), reflecting the structural divergence between coastal demand underpinned by lifestyle migration, foreign buyer interest, and tourism-linked investment and Windhoek’s more incremental recovery.
