…Windhoek remains most expensive residential market at N$1.87 million
Namibia’s average house price increased by more than N$100,000 over the past year and by more than N$20,000 from the previous quarter, reaching a record N$1.46 million in the second quarter of 2026, even as property sales slowed amid affordability pressures, higher borrowing costs and constrained housing supply.
According to the latest FNB House Price Index, the national average house price rose to N$1,461,215 during the second quarter, up N$20,732 from N$1,440,483 in the first quarter and N$100,551 higher than the N$1,360,664 recorded in the corresponding period last year.
Annual house price growth accelerated to 7.4%, compared with 7.1% in the previous quarter.
“The FNB House Price Index grew by 7.4% on a 12-month average in 2Q26, an uptick from 7.1% recorded in 1Q26 but below the 7.7% growth observed in 2Q25. The 12-month national weighted average house price grew to N$1,461,215 in 2Q26, from N$1,440,483 in 1Q26 and is significantly above the N$1,360,664 seen in 2Q25,” said FNB Market Research Manager Mandisa Van Wyk.
Despite rising property values, market activity weakened considerably.
Annual transaction growth slowed to 2.8% in the second quarter, down sharply from 10.4% in the first quarter and 15.5% in the corresponding period last year, reflecting weaker demand as buyers grappled with rising financing costs and affordability constraints.
FNB attributed the continued rise in house prices to persistent supply-side constraints, including limited housing stock, delays in servicing residential land and elevated construction costs.
At the same time, affordability pressures, higher inflation and the 25-basis-point interest rate increase implemented in June continued to weigh on buyer activity. Although mortgage credit growth improved to 2.1% year-on-year in June, it remains subdued by historical standards.
“Transaction volumes continued to lose momentum in 2Q26, with growth slowing to 2.8% on a 12-month moving average basis, down from 10.4% in 1Q26 and 15.5% in 2Q25. The moderation in transaction activity contrasts with the continued rise in house prices, as slower transaction growth points to a market where affordability and supply-side constraints are increasingly influencing buying activity,” Van Wyk said.
The coastal region recorded the strongest annual house price growth at 11.9%, followed by the central region at 8.9%, while prices declined by 0.7% in the northern region and 5.2% in the southern region.
The coastal market also recorded the strongest transaction growth at 7.4%, while activity in the northern and southern regions remained largely unchanged.
A total of 756 residential property transactions were recorded nationwide during the quarter. FNB cautioned that trends in the southern region should be interpreted carefully because only 23 transactions were recorded.
Among housing categories, the luxury segment, comprising homes valued above N$6.5 million, posted the strongest annual price growth at 21%, with the average luxury property selling for N$9.25 million.
Large homes valued between N$3.5 million and N$6.5 million recorded price growth of 6.6%, while transaction volumes increased by 20%.
The medium-priced segment, valued between N$1.5 million and N$3.5 million, recorded 2.1% price growth and a 9.8% increase in transaction volumes.
Meanwhile, the small-home segment, priced between N$500,000 and N$1.5 million, recorded price growth of 2.6%, while transaction volumes declined by 1.1%, highlighting growing affordability pressures facing first-time and lower-income buyers.
Residential land sales also remained under pressure, declining 26.7% over the 12 months to the second quarter, although this represented an improvement from the 32% decline recorded in the previous quarter. The steepest declines were recorded in the coastal (44.3%) and central (33.3%) regions.
At town level, Windhoek remained Namibia’s most expensive residential market, with the average house price reaching N$1.87 million, representing annual growth of 10.7%. Swakopmund recorded an average house price of N$1.37 million, while Walvis Bay averaged N$1.24 million.
Among individual towns, Mariental recorded the strongest annual house price growth at 126.8%, followed by Okakarara (71.6%) and Katima Mulilo (55.6%), although FNB cautioned that these figures may reflect relatively low transaction volumes.
Looking ahead, FNB expects house prices to remain supported by ongoing housing shortages, particularly in the central and coastal regions. However, affordability constraints and elevated borrowing costs are expected to continue limiting transaction activity until land servicing accelerates, housing supply increases and household incomes strengthen.
