The availability of serviced erven in Extension 5 of Otjomuise has attracted numerous developers to invest in the area, research from Simonis Storm shows.
Simonis Storm, researcher Halleluya Ndimulunde said the surge in investment has resulted in a notable increase in approved building plans.
“Analysing house plans approved by area, data from the City of Windhoek (CoW) indicate that Otjomuise had the highest value of approved house plans for the month, amounting to N$18.2 million,” she said.
This comes as the CoW approved 76 building plans from a pool of 122 received in January 2024, compared to 105 plans approved in December 2023.
Ndimulunde said this marks a year-on-year (y/y) decrease of 11.6% and a month-on-month (m/m) decrease of 27.6%.
The newly approved building plans collectively hold a total value of N$53.8 million.
“31 building projects were completed during January 2024, an increase from 23 recorded in December 2023 but a decrease from 67 projects completed in January 2023. The total value of the 31 completed projects amounts to N$47.4 million,” said the researcher.
Meanwhile, in January 2024, the highest value of approved building plans by construction type was for houses, totalling N$41.8 million, followed by additions valued at N$8.6 million.
Between 18 December 2023 and 15 January 2024, a total of 22 building plans were submitted to the Swakopmund Municipality, with an estimated total value of N$43.5 million.
In January 2024, 25 building plans with a combined value of N$29.8 million were approved, a decrease from the 80 plans approved in December 2023.
“During the same period, six building projects were completed in Swakopmund Municipality, with a total value of N$4.6 million. This marks a significant decrease from the 42 and 76 completed projects recorded in January and December 2023,” Ndimulunde said.
She added that out of the six completed projects, four were for new residential buildings, while the remaining two were for additions and alterations.
The research highlights that the building activity observed in Windhoek and Swakopmund for January 2024 indicates a concerning start to the year.
Windhoek experienced a decrease in both approved building plans and completed projects compared to the previous month and year.
Similarly, Swakopmund also saw a decrease in approved building plans and a significant decline in completed projects, indicating a slowdown in construction activity.
“These trends suggest a concerning outlook for the construction sector, influenced by economic uncertainty where cyclical sectors like construction and materials typically face reduced demand. Additionally, the current high-interest rate environment further dampens activity,” Ndimulunde noted.
