The City of Windhoek approved 131 building plans in April valued at N$173.4 million, latest data shows.
The approvals represent a 28.8% monthly decline from the 184 building plans approved in the prior month, but in terms of value, the approvals increased by 69.1% from the N$102.6 million approved in March.
According to financial services company IJG year-to-date, 561 building plans worth N$370.7 million have been approved, down 26.8% in number terms and 28.6% y/y less in value terms compared to the same period in 2022.
On a twelve-month cumulative basis, the number of approvals declined by 5.6% y/y to 2,262 and fell by 12.8% y/y in value terms to N$1.61 billion
A total of 54 building plans worth N$65.6 million were completed during April.
“93 additions to properties valued at N$58.7 million received the nod in April. This was 21 fewer and N$4.29 million less than in April 2022. Year-to-date, 412 additions to properties worth N$147.2 million have been approved, representing a 13.8% decrease in number terms and a 45.8% drop in value terms compared to the corresponding period a year earlier,” the company said.
Meanwhile, on a 12-month cumulative basis, both the number and value of additions to properties continued to decline.
This comes as 1,609 additions to properties worth N$762.5 million were approved over the past 12 months, compared to 1,630 additions worth N$766.8 over the same period a month ago.
“A total of 12 additions valued at N$3.69 million were completed during April, the lowest monthly number and value of additions to properties recorded so far this year,” said the IGJ.
29 new residential units valued at N$38.1 million were approved in April, compared to the 58 units worth N$42.7 million receiving the go-ahead a year ago.
Year-to-date, 132 new residential units worth N$124.7 million have been approved, down 52.5% from the 278 units worth N$208.4 million approved over the same period a year earlier.
“The 12-month cumulative new residential unit approval figures continued their downward spiral. 589 units worth N$620.4 million have been approved over the past 12 months, down 28.2% in number terms and 30.0% less in value terms compared to the corresponding period a year ago,” IJG said.
A total of 41 residential units valued at N$47.9 million were completed during April.
IJG highlighted that building plans data showed little buoyancy in April with the approval figures, particularly within the commercial space, witnessing some improvement.
These advances were, however, achieved from a very low base and the overall picture for building plans remains relatively bleak as the graphs above and below imply.
“Construction activity is anticipated to remain low in the near term due to the sluggish economy grappling with high inflation and confronting elevated interest rates. All factors create an unfavourable environment for fostering interest in new construction projects.”
