Namibia’s 12-month national weighted average house price increased to N$1,420,286 in the fourth quarter of 2025, up from N$1,319,987 recorded during the same period in 2024, according to the latest FNB House Price Index Report.
FNB said the Central region continues to command the highest average house price at N$1,793,000, followed by the Coastal region at N$1,541,000.
The Northern region recorded the strongest growth rate at 9.5%, bringing its average price to N$980,000, while the Southern region recorded an average price of N$896,000.
Although the North saw a surge in transaction volumes, activity in the South remained particularly thin, with only 22 transactions recorded, according to the bank.
According to FNB, the property market is characterised by accelerating price growth and resilient demand, despite a slight moderation in sales activity.
“The FNB House Price Index grew by 7.6% on a 12-month average in 4Q25, up from 5.9% in 3Q25, but below the 8.7% recorded in 4Q24. The 12-month national weighted average house price rose to N$1,420,286 in 4Q25, higher than N$1,380,042 in 3Q25 and well above N$1,319,987 recorded in 4Q24. Transaction volumes increased by 17.0% in 4Q25, moderating from 18.4% in 3Q25 but significantly stronger than the 0.9% growth recorded in 4Q24,” the report said.
FNB noted that while transaction volumes grew by a robust 17.0%, this represented a slight slowdown from the previous quarter, suggesting sustained demand even as the pace of buying activity begins to ease.
Performance across Namibia’s regions remained broad-based, with all areas recording growth, according to the report. Market segments showed mixed performance, with prices in the small, medium and large housing categories increasing by between 2.4% and 2.7%. In contrast, the luxury segment experienced a significant price contraction of 19.4%. Transaction volume growth was particularly strong in the large segment at 71.4%, largely reflecting base effects from a low number of transactions in the prior period, FNB said.
Economic conditions and supply constraints continue to shape the market. FNB noted that while the Bank of Namibia reduced the repo rate to 6.50% in late 2025 to ease financial pressure, mortgage credit growth remained subdued at 0.2%, reflecting high unemployment and weak wage growth.
At the same time, a critical shortage of serviced land caused residential plot sales to decline by 34.7%, according to the report. With a backlog exceeding 300,000 plots, the persistent supply and demand imbalance is expected to keep house prices elevated, particularly in high-demand central and coastal areas.
“These favourable market indicators point to resilient consumer demand, supported in part by improved borrowing conditions following the Bank of Namibia’s decision to reduce the repo rate to 6.50% in October 2025. Together with easing inflation, these developments are expected to alleviate household financial pressures and potentially strengthen demand for long-term borrowing,” the report stated.
FNB further said a major constraint remains the shortage of serviced land, with residential plot sales declining by 34.7% in 4Q25. This demand and supply mismatch, compounded by a backlog of more than 300,000 plots, continues to exert upward pressure on house prices.
Looking ahead, FNB analysts expect the market to remain firm, with prices likely to stay elevated in high-demand areas such as the central and coastal regions.
“Furthermore, the government has indicated that it is considering measures such as introducing a cap on housing and rental prices as part of efforts to address affordability pressures. This potential policy direction reflects an acknowledgement of the challenges posed by rising housing costs and the limited availability of affordable housing options,” the report said.
