Chamwe Kaira
Namibia’s residential property market continued to grow during the first quarter of 2026, although house price growth and transaction activity showed signs of slowing.
According to the latest FNB Namibia house price index report, the national house price index increased by 7.1% on a 12-month average basis.
FNB Namibia’s market research manager Mandisa Van Wyk said the figure reflects slower growth compared to the 7.6% recorded at the end of 2025 and the 9.4% peak seen in early 2025.
The national weighted average house price increased to N$1.44 million from N$1.42 million in the previous quarter.
The luxury housing segment, which includes properties priced above N$6.5 million, recorded the strongest growth at 10.8% year-on-year.
Small houses recorded price growth of 3.4%, while medium and large houses increased by 2.3% and 4.3%, respectively.
The coastal region recorded the strongest regional growth, with average house prices rising by 10.6% to N$1.57 million.
The central region, which includes Windhoek, remained the country’s most expensive housing market, with average prices reaching N$1.82 million after a 7.6% increase.
House price growth in the northern region slowed to 0.4%, with average prices reaching N$961 000.
The southern region recorded a 0.7% decline in prices, bringing the average house price to N$880 000.
Transaction volume growth slowed to 10.4% from 17% in the previous quarter.
Mortgage credit growth also remained low at 1.9% in March 2026.
The report said this trend suggests that more cash buyers and foreign investors are driving the market, while many Namibians are struggling to access home financing because of unemployment and slow wage growth.
Residential plot sales remained under pressure, with growth still in a 32% contraction.
The report said slow land servicing and high construction costs continue to limit the supply of new housing, especially for lower-income groups.
FNB expects the property market to remain stable but constrained, with supply shortages likely to keep prices high while affordability challenges continue to affect many buyers.
