The adage “location, location, location” holds true in real estate, as house prices tend to rise in downtown areas of major cities and decline gradually as one moves away from the city centre.
This phenomenon is explained by the bid rent theory, where the scarcity of land in downtown areas and the potential for high foot traffic lead to higher rental prices.
The Brief conducted a survey focused on rental prices for 1-bedroom, 2-bedroom, and 3-bedroom properties in various locations in Windhoek.
The locations included are Katutura, Windhoek West, Otjomuise, Rocky Crest, Klein Windhoek, Khomasdal, Central Business District (CBD), Dorado, Pionierspark, Elisenheim, Eros, and Kleine Kuppe.
Our survey reveals that prices tend to be higher near the CBD due to high demands on rentals and the need to be closer to services.
Rental prices were sourced from advertisements and real estate agent listings, and an average was calculated for each category after gathering the data.
In cases where water was included in the rental prices, a standard deduction of N$300 was applied.
In the 1-bedroom property category, both the Central Business District (CBD) and Pionierspark had relatively high average rental prices, averaging N$6,800 each, with most excluding utilities.
Notably, CBD exhibited varied prices for comparable units, such as Freedom Plaza near Hilton offering N$9,500, while another unit in the same complex was listed at N$6,500.
On the other hand, Katutura, a suburb farther from the CBD, offered a more affordable option with an average of N$4,000, often including utilities as these were mainly backyard flats as there are no advertisements or real estate agents listing of that type.
Khomasdal and Otjomuise followed with an average of N$4,500, with some including water of around N$300 or excluding electricity.
In the 2-bedroom property category, Klein Windhoek had the highest average price at N$9,600, exclusive of utilities.
Pionierspark followed at N$8,500, while Eros and Kleine Kuppe both averaged at N$8,000, excluding utilities.
Katutura once again presented a more affordable option for the 2-bedroom property category, with an average price of N$5,250.00, often inclusive of utilities.
For 3-bedroom sectional title properties, Klein Windhoek had the highest average rental amount at N$12,000, predominantly excluding utilities.
CBD followed at N$11,500, with Windhoek West, Pionierspark, and Eros averaging at N$11,000.
Conversely, Katutura offered the most budget-friendly option, averaging at N$6,800, followed closely by Rocky Crest and Khomasdal at N$8,450 and N$8,500, respectively.
Dorado and Elisenheim exhibited identical average prices for 1-bedroom and 2-bedroom property categories, with 1-bedroom units priced at N$5,500 and 2-bedroom units at N$6,800. However, Elisenheim’s 3-bedroom units were priced higher at N$9,800, compared to Dorado’s N$9,000.
It’s important to note that the rental prices considered are averages from advertisements and listings, and actual prices may vary based on factors such as finishes and utility inclusions.
Additionally, within the same building or suburb, similar or comparable flats may have different rental costs. While distance from the CBD influences prices, access to services also plays a significant role in determining pricing.
