Namibia’s coastal housing market has rebounded in the third quarter of 2025, driven by strong foreign demand and renewed investor confidence, according to the latest FNB House Price Index Report.
The report shows that coastal house prices rose by 1.2% on a 12-month average, recovering from a -0.3% contraction in the previous quarter, though still below the 2.7% growth recorded in the same period last year.
The average coastal house price climbed to N$1.48 million, supported by increased buying activity in the small and medium market segments.
FNB Market Research Manager, Mandisa van Wyk, said the coastal rebound was underpinned by sustained international interest and a growing appetite among local investors for rental properties, even as household mortgage credit growth remained subdued.
“The coastal region’s rebound is underpinned by sustained interest from foreign buyers and growing local investment in rental housing,” Van Wyk said.
The report indicates that transaction volumes surged by 41.5%, up from 35% in the second quarter of 2025, and rebounded from a 4.7% contraction a year earlier.
The small, medium, and large housing segments grew by 42.3%, 35.8%, and 183.6% respectively on a 12-month average.
FNB cautioned, however, that the sharp increase in large properties reflected base effects, as only 13 transactions were recorded in that segment during the quarter, while no sales occurred in the luxury category.
“The coastal region’s share of housing transactions reduced marginally to 20.0% in 3Q25 from 20.7% in 2Q25, however, it remains higher than the 16.9% share recorded in 3Q24,” Van Wyk added.
Nationally, the housing market continued to show resilience, with the FNB House Price Index rising 5.9% year-on-year, though slower than 7.7% in the previous quarter. The average national house price rose to N$1.38 million, compared to N$1.36 million in the previous quarter and N$1.30 million a year earlier.
Transaction volumes grew 18.4% year-on-year, marking the third consecutive quarter of expansion since late 2024. However, mortgage credit growth remained weak at 0.6% year-on-year in September 2025, down from 0.8% in August, which FNB attributed to affordability challenges, with market activity increasingly driven by high-income and cash buyers.
Van Wyk said broader macroeconomic conditions had provided some relief, citing the Bank of Namibia’s decision to cut the repo rate by 25 basis points to 6.50% in October 2025, following slower GDP growth of 1.6% in the second quarter and easing inflation of 3.6% in September.
“To improve housing market access, proactive municipal efforts to accelerate land servicing could significantly expand property ownership opportunities for a wider segment of the population,” she said.
Regionally, the northern region recorded the strongest price growth at 10.9%, followed by the southern region at 8.5%, driven mainly by small-segment homes. The central region grew by 4.8%, maintaining the largest share of national transactions at 39.6%.
Residential plot sales fell by 32.3% nationally in the third quarter, with the coastal region down 1.9%. Van Wyk said the slowdown highlights the urgent need for accelerated land servicing and infrastructure development to unlock new housing opportunities.
Despite these constraints, FNB said it remains cautiously optimistic about Namibia’s housing outlook, citing strong underlying demand and supportive government policies.
