The City of Windhoek approved building plans valued at N$100.1 million in March 2026, representing a 30.9% month-on-month and 72.1% year-on-year decline, according to IJG Securities, despite an increase in the number of approvals.
A total of 192 plans were approved during the month, up by 42 from February, while completions edged up to 21 projects. In value terms, completions declined to N$20.0 million from N$21.7 million, with year-to-date completion values down 54.2% year-on-year.
“Overall, building activity in March 2026 reflects tentative stabilisation in volumes, with an increase in the number of building plan approvals and residential units suggesting some renewed momentum in construction activity,” IJG said.
Property additions rose to 153 approvals, up 33.0% month-on-month. However, their value declined by 23.7% to N$41.4 million and was down 46.9% year-on-year. Ten additions were completed during the month, with values falling to N$4.8 million.
Residential approvals increased to 32 units from 28 in February, although their value declined by 28.9% month-on-month to N$46.3 million.
Year-to-date, 87 units valued at N$161.5 million have been approved, reflecting a 19.2% increase in volume but a 19.5% decline in value.
“However, the persistent decline in the value of approvals and completions points to subdued investment and a continued shift towards smaller, lower-value developments,” IJG noted.
Commercial and industrial activity remained limited, with seven approvals recorded in March valued at N$12.4 million. No completions were registered during the month.
“Completion activity remains weak, particularly on a year-on-year and rolling 12-month basis, highlighting ongoing delays in project execution and constrained financing conditions,” the firm said.
Looking ahead, IJG said the prospect of higher interest rates poses a downside risk, as rising borrowing costs may further dampen developer appetite, delay new projects and suppress construction investment values, limiting the pace and sustainability of any recovery in the sector.
