Simonis Storm Securities has said despite the minor decline in new construction project proposals, the increased number of approved building plans indicates a higher approval rate, which could be attributed to a more efficient approval process or greater confidence among developers.
More importantly, the substantial rise in completed building plans reflects a significant boost in construction activity and project completions, the firm said in a report.
The report said Windhoek’s focus on property expansions indicates a mature market with an emphasis on enhancing existing structures.
“This trend suggests that homeowners and developers see more value in upgrading and expanding current properties, possibly driven by urban renewal initiatives or the need to adapt existing spaces to modern demands,” the report said.
In contrast, Swakopmund’s emphasis on new residential constructions points to a growing housing market. This suggests strong demand for new homes, likely driven by economic growth, population increases, or the appeal of coastal living, the report said.
“The high number of residential approvals highlights proactive measures to address housing shortages and cater to future growth.”
The report said construction activities in Windhoek and Swakopmund provide valuable insights into their respective economic and developmental priorities.
Simonis said Windhoek’s trend towards property expansions signifies a focus on maximizing existing infrastructure, while Swakopmund’s new residential projects indicate dynamic growth and future planning, the report said.
The report said most of the approved building plans in both Windhoek and Swakopmund predominantly focused on the residential segment of the market. In Windhoek, the majority of the building plans are for additions indicating a strong emphasis on expanding existing structures. This is followed by house construction, walls and a smaller number of commercial projects and pools.
The report said this distribution suggests a trend towards enhancing and enlarging current properties rather than initiating new builds. In Swakopmund, residential projects dominated the new building plans with 56 approvals, highlighting significant growth in housing. This was followed by commercial buildings and institutions with minimal activity in the industrial sector. This indicated that the primary focus in Swakopmund is on residential development, possibly driven by increasing demand for housing, the report said.
In June, Windhoek experienced a decline of 17.6% month on month in approved building plans, decreasing from 199 approvals in May to 164 in June. In contrast, Swakopmund saw 46.7% year on year increase in approved building plans for June, despite negative growth of 12% month on month with approvals falling from 75 in May to 66 in June. -Simonis Storm Securities
