A total of 74 building plans were approved in January 2025, slightly up from 72 in the same period last year, according to data from IJG Securities.
However, the firm notes that the total value of approvals declined by 12.1% year-on-year to N$47.0 million.
The data reflects a mixed performance across categories, with approvals remaining relatively modest in line with historical trends for January.
“In January, the number and value of building plan approvals and completions were relatively modest. It is worth noting, though, that January is typically a slower month for these activities,” the firm said.
However, the twelve-month cumulative trend reveals a 5.1% y/y increase in the total number of building plan approvals and a substantial 45.1% y/y rise in the value of total building plan approvals.
During the month, 38 building plans worth N$48.7 million were completed, a 22.6% y/y increase in the number of building plan completions and a 2.7% y/y increase in the total value of building plan completions.
“The twelve-month cumulative figure shows a 72.2% y/y increase in the number of building plans completed, as well as a 9.0% y/y increase in value terms,” said IJG.
During January, a total of 61 building plans were approved and valued at N$20.2 million.
This represents a 22.0% y/y increase in the number of additions approved and a 134.5% y/y increase in the value of these additions.
“On a month-to-month basis, the number of building plan additions declined by 43.5% relative to the 108 additions approved in December 2024. The value of these approvals fell by 30.4% when compared to N$29.1 million in December 2024,” said IJG.
Furthermore, the twelve-month cumulative figure in the number of building plan approvals increased by 8.6% y/y, and the value of these approvals rose by 16.7% y/y.
In January, the data for residential building plans showed a total of 13 approvals, valued at N$26.8 million, marking a 31.6% y/y and 36.0% y/y decline in number and value terms, respectively.
“On a month-to-month basis, the number of residential building plan approvals declined by 53.6%. The twelve-month cumulative figure shows that the number of residential building plan approvals declined by 7.3% y/y, but the value of these plans rose by 73.8% y/y,” said IJG.
Additionally, nine residential buildings with a value of N$18.4 million were completed, marking a 43.8% y/y decrease in the total number of residential buildings completed.
The value of these completions remained unchanged from the N$18.4 million witnessed in January 2024.
Meanwhile, no commercial and industrial plans were approved during January.
“The twelve-month cumulative figure reveals a modest 1.9% y/y decrease in the number of approvals, while the value of approvals saw a notable 63.1% y/y increase. One building plan valued at N$25.0 million was completed during the month, reflecting a 13.6% y/y increase in value terms,” noted the firm.
Looking ahead, IJG expects building plan approvals and completions to pick up in the coming months, with recent rate cuts potentially encouraging greater consumer and commercial activity.
