The City of Windhoek’s latest municipal tariff increases are expected to push up rental prices, with economists warning that landlords are likely to pass the higher costs on to tenants when leases are renewed.
They say the increase comes at a time when housing costs, interest rates and inflation are already rising, making it more expensive for landlords to own and maintain rental properties.
Simonis Storm Associate Economist Almandro Jansen said there is already evidence that higher municipal costs are contributing to rent increases in Windhoek.
“Local real estate agents have linked recent rent increases to higher municipal rates, maintenance costs and rising interest rates,” Jansen said.
He explained that tenants are unlikely to see rent increases immediately because most rental agreements are fixed for 12 months. Instead, higher rents are expected when leases are renewed.
“The practical effect is that this latest tariff increase will likely start showing in rent reviews from around September or October 2026, as leases signed or renewed after 1 July are repriced,” he said.
Jansen said the increase comes at a time when housing costs are already rising. The housing, water, electricity, gas and other fuels category recorded inflation of 4.4% in June 2026, matching the national inflation rate.
Khomas also recorded the country’s highest regional inflation rate at 5.8%, compared with 3.3% in the northern regions.
Jansen said Windhoek continues to face a shortage of housing because of slow land delivery, continued migration to the city and more properties being converted into short-term accommodation.
He also noted that Namibia has no rent control laws, allowing landlords to adjust rents more freely.
Jansen said municipal charges such as rates, refuse collection and sewerage usually account for 10% to 20% of a landlord’s rental income. While a 4% increase in these charges alone may not result in a large rent increase, it becomes more significant when combined with higher bond repayments following the Bank of Namibia’s recent repo rate increase to 6.75%.
High Economic Intelligence (HEI) Economist Lewis Komu said landlords may try to recover higher municipal costs through rent increases, but the size of any increase will depend on what tenants can afford, vacancy rates and competition in the rental market.
He said tenants could also face higher deposits, additional municipal-related charges and reduced affordability as housing costs continue to rise.
“Windhoek landlords may seek to recover higher municipal costs through rent adjustments, particularly when leases are renewed or when new tenants move into a property. However, a 4% increase in municipal tariffs will not necessarily result in a similar increase in rent because municipal charges are only one part of the total cost of owning and maintaining a property,” Komu said.
Komu said municipal tariff increases alone are unlikely to change landlords’ investment decisions, but they become more important when combined with higher loan repayments, insurance costs, maintenance expenses and inflation.
He said landlords should first look at ways to reduce costs, such as improving water efficiency, carrying out preventative maintenance, checking municipal accounts, negotiating longer leases and absorbing part of the increase where possible before passing the full cost on to tenants.
“Passing all the extra costs on to tenants could make housing less affordable, increase vacancy rates and make it harder to keep reliable tenants. Landlords need to manage their costs while also considering what tenants can realistically afford,” Komu said.
