The City of Windhoek approved 179 building plans valued at N$193.7 million in June, marking a 44.7% month-on-month increase in the value of approved projects and a 23.4% rise in the number of approvals, signalling a rebound in construction activity, according to IJG Securities.
Approvals increased from 138 projects in May to 179 in June, with the higher value of approved developments pointing to a shift towards larger, more capital-intensive projects.
“Notably, the increase in approvals was accompanied by a substantial 44.7% month-on-month surge in the value of plans, suggesting a shift towards larger capital-intensive projects,” IJG said.
Despite the monthly improvement, building approvals for the first six months of 2026 remained below last year’s levels. The cumulative value of approved plans fell 20.8% year on year to N$784.0 million, compared with N$990.3 million during the corresponding period in 2025.
Residential approvals remained relatively resilient. During June, the municipality approved 30 residential units valued at N$60.8 million, while cumulative residential approvals for the first half of the year rose 2.2% year on year to N$341.6 million.
Property additions recorded the strongest performance during the month, with 142 approvals valued at N$107.1 million. On a year-to-date basis, the value of approved additions increased 15.3% to N$349.2 million.
Commercial and industrial approvals also recovered in June, with seven projects worth N$25.8 million receiving approval.
However, IJG said the segment remained significantly weaker than a year earlier, with the cumulative value of commercial and industrial approvals declining 73.6% year on year to N$93.1 million, despite a 48.0% increase in the number of approved projects.
“While more commercial projects are receiving approval, they are substantially smaller in scale and value than those approved in the prior year,” IJG said.
Building completions also improved during June, rising to 25 projects valued at N$54.6 million from 21 projects worth N$37.0 million in May. The value of completed projects was 100.1% higher than in June 2025.
Despite the improvement, construction activity continued to lag behind approvals. During the first half of the year, only 121 building projects valued at N$168.6 million were completed, representing declines of 40.4% in volume and 16.0% in value compared with the same period last year.
“Building activity in Windhoek rebounded sharply in June 2026, with both approvals and completions recovering from May’s subdued levels. A more concerning trend emerges from completion data,” IJG said.
The brokerage said the persistent gap between approved and completed projects points to ongoing delays in project execution across the construction sector.
“This subdued performance is consistent with ongoing weakness in private sector credit extension, which continues to reflect constrained demand for mortgage financing from both households and corporates amid prevailing economic headwinds,” IJG said.
