Buoyancy in Country’s Property Market

Desie Heita

13 July 2011

Windhoek — There is buoyancy in Namibia’s property market even though this year’s figures show a slight decrease in the number of building plans approved and completed for the period of January to June compared to the same period last year.

Figures indicate that countrywide the demand for housing is on the increase, with notable investments in residential properties – both houses and flats – compared to investments in business premises.

This is with the exception of Windhoek where monthly increases for residential and commercial properties are almost on par.

Windhoek also carries the highest investment value in properties for the first six months up to June, a whooping N$782 million in building plans approved, lower than the N$852 million recorded in the same period last year.

The figure represents 1 493 new building plans for Windhoek.

The value of building plans completed amounts to N$349 million, which is higher than the N$329 million value recorded last year.

Petrus Shifotoka, an economist at Capricorn Investment Holdings (CIH) compiled the figures.

The mixture between residential and commercial properties is totally different for the northern regions, where in Ongwediva there are more investments going into residential properties compared to commercial properties.

The number of Ongwediva-based building plans approved increased from 24 to 32 month-on-month in June 2011.

The increment over the month was reflected in residential building plans that increased from 20 to 29, while business-related building plans decreased from 4 to 2.

The value of the approved building plans is at N$13 million on a monthly basis, up from N$2,9 million, while on an annual basis the value is at N$13 million from N$5 million.

During the first six months, a total of 119 building plans were approved compared with 135 approved during the same period in 2010.

The total value of plans approved stood at N$30.1 million compared with N$31.7 million approved during the same period of 2010.

The coastal towns are also experiencing an optimistic property market, with the two towns of Swakopmund and Walvis Bay approving 139 building plans month on month.

The total value of plans completed in Walvis Bay alone stood at N$43.8 million compared with N$31.5 million during the same period of 2010.

Completed plans for residential buildings shot up to 101 and business building plans increased from 2 to 3.

The value of coastal-based building plans approved increased from N$37.8 million to N$47.7 million on a monthly basis during the month of April 2011 and from N$44.0 million to N$47.7 million on an annual basis.

During the first four months of 2011, a total number of 495 building plans were approved compared with 308 during the same period of 2010.

The total value of plans approved stood at N$188.4 million compared with N$167.1 million during the same period of 2010.

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