Namibia’s luxury housing market slowed in the second quarter of 2025, with only six transactions recorded nationwide and prices falling by 32.5%, according to the FNB House Price Index.
“It should be noted that the luxury segment sales only recorded six transactions whilst the small, medium and large segments had transaction volumes of 545, 182 and 28 on a 12-month average in the second quarter of 2025,” the report stated.
The index further reported that small home prices rose 5.9% and medium homes edged up 0.2%, while large homes declined 6.6%.
Transaction volumes increased across all categories, with growth of 9.0% in the small segment, 22% in medium, and 100% each in large and luxury properties.
Overall, the report highlighted that transaction volumes surged 15.5% on a 12-month basis, up from 10.0% in the first quarter of 2025 and reversing a 17.7% contraction in the second quarter of 2024.
Regionally, volumes rose in the central (12.5%), coastal (35.6%), northern (8.1%) and southern (16.7%) regions.
The central region maintained the largest market share at 40.0%, followed by the north (36.5%), coast (20.7%) and south (2.8%).
The report noted that the residential property market continued its upward momentum, recording a 12-month average growth of 7.7%. This was a slowdown from 9.4% in the first quarter but significantly higher than the 1.7% growth seen a year earlier.
“The overall national house price now stands at N$1,360,664 at the end of 2Q25, slightly above the N$1,345,270 in 1Q25 and notably higher than the N$1,263,673 recorded in 2Q24,” it said.
Regionally, the coastal market was the only one to record a contraction, slipping 0.3%. Average house prices stood at N$1,723,000 in the central region, N$1,408,000 at the coast, N$978,000 in the north and N$955,000 in the south.
The report also pointed to weak mortgage uptake, with growth of just 0.2% month-on-month in July 2025, down from 0.3% in June. Year-on-year growth picked up slightly to 0.8%. It added that the Bank of Namibia’s directive for commercial banks to reduce lending spreads by 25 basis points before year-end, with the repo rate at 6.75%, is expected to ease borrowing costs and stimulate demand.
On the supply side, the index said residential plot sales contracted by 13.1% in the second quarter, with declines in the central, northern and southern regions outweighing coastal growth of 12.8%.
The government is accelerating efforts to address the national backlog of 300,000 serviced plots, with 1,064 plots currently being serviced and an additional 1,007 expected in the north through the formalisation of six informal settlements.
According to the report, government has also introduced a pension-backed home loan scheme, allowing individuals to access up to one-third of their pension savings to purchase or improve homes.
This is expected to broaden financing options for households excluded from traditional mortgage products.
“Looking ahead, these dynamics signal a robust outlook for the housing sector with demand expected to remain strong, driven by local investment and efforts to increase the supply of land,” the report read.
