Building plan approvals in Windhoek have reached N$2.27 billion over the past twelve months, driven by a sharp rise in commercial and industrial projects.
This marks a 25.0% year-on-year increase in total value, despite a 1.1% drop in the number of approved plans, according to IJG Securities.
“Over the past twelve months, a total of 1,896 building plans were approved, valued at N$2.27 billion,” IJG stated.
In May alone, the City of Windhoek approved 179 plans valued at N$177.6 million, up 33.6% in number and 21.6% in value compared to April.
“Year-to-date, the value of approvals for commercial and industrial properties is N$255.4 million higher compared to the same period last year,” the report said.
Approvals for residential and addition projects are down. So far this year, property additions have declined by N$134.4 million and residential approvals by N$70.5 million compared to 2024.
“Year-to-date data shows a mixed trend across different property categories,” IJG noted.
Building completions dropped sharply in May. Only 16 buildings were completed, valued at N$23.2 million. That reflects a 90.2% year-on-year drop in number and a 71.4% decline in value.
“May 2024 recorded the highest number of completions since February 2022, making the current decline largely a result of a high base effect,” IJG said.
There were 144 property additions approved in May, valued at N$43.7 million. While the number rose 27.4% month-on-month, the value dipped 0.7%.
“Year-to-date, 588 property additions have been approved, valued at N$265.6 million – down 3.6% in number and 33.6% in value,” IJG reported.
Only 12 property additions were completed during the month, valued at N$3.7 million, far below the five-year monthly average of 49 completions.
Residential activity showed some recovery in May, with 30 plans approved worth N$49.1 million. This reflects an 87.5% increase in number and a 55.0% rise in value from April, due to a low base.
“Year-to-date, 199 residential units have been approved with a total value of N$281.3 million, reflecting declines of 16.8% and 20.0% in number and value, respectively,” IJG stated.
Only three residential units were completed in May, at a value of N$5.1 million. This is the lowest since April 2020.
Commercial and industrial plans led the value gains. Five plans worth N$84.9 million were approved in May, unchanged in number but up 265.0% from April.
“Over the past twelve months, commercial unit approvals declined by 17.2% to 48 units, but the cumulative value rose sharply by 177.3% to N$795.7 million,” IJG said.
