The City of Windhoek saw an uptick in the number of building plans approved in February, with a total of 167 plans approved, a 111.4% increase from January’s low base of 79 approvals.
The value of these approvals amounted to N$72.7 million, a 229% increase from January’s N$22.1 million. However, experts warn that the figures are still below pre-pandemic levels, indicating continued economic hardship in certain sectors of the Namibian economy.
According to financial services company IJG, 246 building plans worth N$94.8 million have been approved year-to-date, a decrease of 37.7% in number and 66.7% in value terms compared to the same period last year. On a twelve-month cumulative basis, 2,318 buildings worth N$1.56 billion were approved, a contraction of 7.4% in number and 21.8% in value terms over the comparative 12-month period a year ago.
Additions to properties made up the largest portion of building plan approvals in February, with 127 additions approved with a value of N$47.2 million. Meanwhile, 37 new residential units worth N$23.5 million were approved during the month.
“While February’s additions to properties approvals data is significantly better than we saw in both January and December, it is still below the average monthly approvals we saw during 2022 in both number and value terms,” said IJG. The monthly average approvals in 2022 was 61 residential units worth N$58.7 million.
The number and value of additions to properties remain roughly in line with the levels seen during the same 12-month period a year ago, with 26 additions worth N$12.6 million completed during the month.
The slowdown in building plan approvals is also evident in the 12-month cumulative figures, which stand at 635 units worth N$618.0 million, a decline of 26.2% y/y in number terms and a contraction of 39.3% y/y in value terms.
“The building plans data for February showed an improvement in planned construction activity from January, although the increase was from a very low base, and the month’s approvals were well below the average monthly approvals witnessed in 2022,” said IJG. “The data implies that certain sectors of the Namibian economy are still faced with hardship.”
Despite the uptick in February, experts warn that the figures are still cause for concern. “While this is 17 more, and nearly double the value we saw approved for this category in January, it remains significantly lower than the approvals recorded for most months during 2022,” said IJG.
