Namibia’s residential property market showed signs of recovery during the first quarter of 2026, although housing affordability and structural constraints continue to pose risks to the sector, the Bank of Namibia (BoN) has said.
The assessment forms part of the Bank’s latest financial stability review following the first 2026 meeting of the Macroprudential Oversight Committee (MOC), which concluded that risks to the residential property market remain contained and do not warrant changes to existing macroprudential measures.
Bank of Namibia Governor Ebson Uanguta said housing market activity strengthened during the first quarter, with mortgage credit growth rebounding to 1.4% from a contraction of 0.06% in the previous quarter.
However, he said household mortgage lending remains below its long-term historical average, reflecting persistent affordability challenges.
House price growth also moderated to 7.3% during the review period, although affordability pressures remained elevated.
“Financial stability risks emanating from the domestic residential property market remained contained during the review period; however, market developments warrant closer monitoring. Housing market activity improved during the first quarter of 2026, with mortgage credit growth increasing to 1.4% from a mild contraction of 0.06% in the previous quarter. Nevertheless, household mortgage credit growth remains below its historical long-term average, reflecting persistent affordability constraints,” Uanguta said.
The central bank identified limited land delivery, rising housing demand and the emergence of alternative housing finance channels as structural challenges that continue to weigh on the property market and require closer monitoring.
Despite these pressures, the MOC concluded that current conditions do not justify additional macroprudential policy interventions.
The committee also reported that Namibia’s national payment infrastructure remained stable during the first half of 2026, with the Namibia Interbank Settlement System (NISS) operating without significant disruptions.
“Risks to the national payment infrastructure remained well contained during the review period. During the first half of 2026, the Namibia Interbank Settlement System remained stable and operated efficiently, supporting the financial sector and the broader economy. Payment obligations continued to settle efficiently, with no material operational disruptions affecting system operations,” Uanguta said.
The committee noted that global financial conditions remain challenging amid geopolitical tensions in the Middle East, persistent inflationary pressures, tighter financial conditions, rising bond yields and increased capital outflows from emerging markets.
Global economic growth is projected to slow to 3.0% in 2026, from 3.5% in 2025, with advanced economies expected to expand by 1.7% and emerging market and developing economies by 3.8%.
Despite the uncertain global outlook, the MOC said Namibia’s financial system remains sound, stable and resilient, with existing macroprudential measures, supervisory actions and regulatory frameworks considered sufficient to safeguard financial stability.
The Bank said it will continue monitoring global and domestic developments and stands ready to introduce additional macroprudential measures should systemic risks intensify.
