The FNB Residential Rental Index has posted an annual contraction of 2.3% at the end of June 2021 from the -3.7% recorded at the end of the preceding quarter.
According to the bank, the national weighted average rent has returned to its pre-Covid-19 levels of N$6 991, coming in at N$7 003 at the end of June 2021 from N$6 886 and N$7 022 recorded in March 2021 and June 2020, respectively.
“The moderate improvement in the rental index highlights a gradual recovery in rental occupancy rates and economic activity in general. Rental growth was specifically evident within the 1-bedroom and more-than-3-bedrooms segments, which grew by 2.2% and 2.9% y/y to N$3 634 and N$18 129 respectively. On the other hand, the 2-bedroom and 3-bedroom segments continue to suffer from a large supply overhang, resulting in rental contractions of 5.8% and 4.2% y/y to N$6 612 and N$9 615 at the end of June 2021, respectively. For context, the 2-bedroom accounted for the highest share of overall rental listings of 46% in the second quarter, followed by the 1-bedroom (32%), 3-bedroom (17%) and the more-than-3-bedrooms (5%)â€, says Frans Uusiku, FNB Namibia Market Research Manager.
From a regional perspective, green shoots in rental growth were mostly observed across the northern towns, such as Rundu (52.6% y/y), Ongwediva (18.0% y/y) and Oshakati (1.3% y/y).
