CHAMWE KAIRA
The central region has experienced significant and consistent growth according to a report prepared by Simonis Storm Security.
The report said northern region displayed a steady but slower rise in prices compared to the central and coastal regions. The southern region exhibited the most volatility, with sharp fluctuations, but ultimately ended on an upward trend. However, the national average line reflects a consistent rise in house prices, emphasizing the overall growth in Namibia’s housing market, the report said.
The FNB House Price Index report for the first quarter of this year revealed a subdued housing market across Namibia, characterized by modest price growth and declining transaction volumes.
Nationally, house prices recorded a 0,3% growth in the first quarter a significant slowdown compared to previous quarters.
Land sales also experienced a sharp decline, contracting by 21,5% year on year with the central and northern regions being the most affected.
“Despite some government interventions, high interest rates and affordability issues continue to suppress buying activity, leading more consumers to opt for renting. Consequently, the residential property market is expected to remain subdued due to these ongoing challenges.”
The report said current homeowners and building owners are witnessing a moderation in cost increases as inflation rates for both services and products related to maintenance and repair continue to fluctuate.
Further analysis of approved building plans for July in the City of Windhoek showed that Khomasdal is the most active area, with 23 approved plans primarily for additions and walls. This was followed by Katutura and Goreangab, each with 16 approved plans, predominantly for new houses, suggesting a focus on expanding residential infrastructure. Otjomuise followed with 14 plans.
In Pionierspark, there are 11 approved plans, which include two swimming pools alongside other construction projects. Klein Windhoek and Wanaheda have nine and eight approved plans respectively, reflecting moderate development. Academia and Olympia each have seven approved plans, indicating a steady level of activity. Hochlandpark and Rocky Crest, with four approved plans each, show lower but still significant construction efforts.
Erospark, Okuryangava, and Prosperita each have three approved plans, demonstrating ongoing but minimal development. Brakwater and Cimbebasia have the least activity, with one and three approved plans, respectively. Notably, all areas, except Auasblick, are seeing additions to existing buildings, while Auasblick specifically has one new commercial building.
The outlook for the construction sector indicates modest growth with gradual building activity observed in both Windhoek and Swakopmund. In Windhoek, the city received 233 plans valued at N$227.5 million in July, a slight increase from the 195 plans received in July 2023.
Similarly, Swakopmund experienced a downturn, with only 39 plans submitted to the municipality in July, valued at N$50.1 million. This marks a sharp decrease from the 66 plans submitted in July, which were valued at N$64.7 million. The number of completed projects also fell, with 30 projects valued at N$29.2 million completed in July.
