The City of Windhoek approved 1,292 building plans worth N$1.25 billion year-to-date representing a 2% increase compared to the same period last year, latest data shows.
According to IJG Securities, the value of the plans surged by 37.7%, indicating an increase in the scale of construction projects.
“The Namibian construction sector shows mixed trends, with rising value but declining approval numbers, particularly in the residential and commercial sectors.
Although property additions are increasing, weaker monetary performance suggests caution in the near term,” said IJG.
The firm also noted that a 31.4% y/y increase in the value of approvals over the past 12 months highlights resilience, but lower completions may dampen growth.
“Moving forward, a market recovery will depend on economic stability and investment confidence,” IJG said.
In August, the City of Windhoek approved a total of 201 building plans, which is 38 more than the 163 approved in July.
In monetary terms, the approvals were valued at N$104.0 million, 52.8% m/m or N$116.5 million lower than in July.
“On a twelve-month cumulative basis, 1,866 building plans worth N$1.83 billion were approved, a decline of 10.7% y/y in number terms but an increase of 31.4% y/y in value terms over the comparative 12-month period a year ago,” added IJG.
A total of 133 building plans worth N$66.0 million were completed during the month. Meanwhile, August saw 166 additions to properties approved, valued at N$57.3 million, making it the highest number of monthly approvals since October 2022, but the value is well below the monthly average of N$74.1 million witnessed this year.
“Year-to-date, 1,018 additions to properties worth N$593.0 million have received the nod, representing a year-on-year rise in number terms of 4.2% and 60.4% in value terms. 100 additions to properties valued at N$21.9 million were completed during the month,” said the firm.
During the month, 34 residential building plans valued at N$46.7 million were approved, slightly above the year-to-date monthly average of 29 units, but below the monthly average of N$59.4 million in value terms.
The 12-month cumulative number and value of residential approvals have increased, after dropping the previous two months.
“By the end of August, 324 units valued at N$622.1 million had been approved over the previous 12 months, representing a 30.8% decrease in the number of units but a 24.2% increase in value compared to the same period the previous year,” said IJG.
The report said 32 residential units worth N$24.1 million were completed during the month. Moreover, in August, only one commercial and industrial building plan was approved, valued at N$30,000.
“This brings the sector’s year-to-date approvals to 43, worth N$178.0 million. While this reflects a 19.4% increase in the number of approvals compared to the same period in 2023, the total value is 18.6% lower,” said IJG.
Furthermore, one commercial and industrial plan valued at N$20.0 million was completed in August.
