CHAMWE KAIRA
The country’s house prices increased by 8.9% in the third quarter of 2026, while property transaction volumes contracted by 3%, highlighting growing affordability pressures in a housing market constrained by limited housing stock and shortages of serviced land.
According to the FNB House Price Index for the third quarter of 2026, released by Mandisa Van Wyk, FNB Namibia market research manager, house price growth accelerated from 7.4% in the second quarter and 5.9% in the corresponding period last year.
The national weighted average house price increased to N$1.50 million, compared with N$1.46 million in the second quarter and N$1.38 million in the third quarter of 2025.
However, transaction volumes declined by 3% on a 12-month moving average basis, reversing the 2.8% growth recorded in the previous quarter and falling significantly short of the 18.4% expansion recorded a year earlier.
FNB said the continued increase in property prices reflected persistent supply-side constraints, including limited housing stock and slow land servicing, while affordability pressures were increasingly weighing on demand.
The central region remained the strongest-performing housing market, recording annual house price growth of 11.4%, up from 8.9% in the second quarter. Its average house price reached N$1.94 million.
The coastal region recorded a price growth of 3.7%, moderating from 11.9% in the previous quarter, with an average house price of N$1.53 million.
In the northern region, house price growth recovered to 1.6% from a contraction of 0.7% in the second quarter, taking the average price to N$991 000.
The southern region remained under pressure, with house prices contracting by 3.4%, although this was an improvement from the 5.2% decline recorded in the previous quarter. Its average house price stood at N$892 000.
Transaction activity weakened across most regions. Nationally, 841 property transfers were recorded during the quarter.
The central region accounted for 48.2% of transactions, followed by the northern region at 30.8% and the coastal region at 19.6%. The southern region accounted for just 1.3%, with only 19 property transfers recorded.
FNB said the low transaction base in the southern region made price and volume movements particularly susceptible to statistical volatility.
Across housing segments, small properties recorded annual price growth of 3.9%, while medium properties increased by 1.9%. Large properties grew by 3.6% and luxury properties by 6.2%.
The average prices stood at N$956 000 for small properties, N$2.17 million for medium properties, N$4.48 million for large properties and N$8.53 million for luxury properties.
Land sales also remained weak, although the pace of contraction eased. Residential plot transactions declined by 15.5% on a 12-month moving average basis, compared with contractions of 26.7% in the second quarter and 32.3% in the third quarter of 2025.
Plot sales contracted by 14.9% in the central region, 30.8% in the coastal region and 26% in the northern region.
The southern region recorded growth of 105.3%, although FNB cautioned that the result was influenced by the region’s small market size.
Despite declining plot sales, land prices increased across all regions. Average land prices per square metre grew by 8.5% in the central region, 18.2% in the coastal region, 18% in the northern region and 53.8% in the southern region.
Mortgage credit growth improved to 2.8% year-on-year in August 2026, indicating some resilience in housing demand, although lending growth remained subdued by historical standards.
FNB said higher inflation had eroded household disposable income, reducing the capacity of consumers to enter the housing market.
The Bank of Namibia’s decision to increase the repo rate by 25 basis points to 7% was also expected to place further pressure on borrowing costs and housing affordability.
