Namibia’s housing market posted its strongest growth in years in the first quarter of 2025, with house prices and sales volumes both recording significant gains, according to the latest FNB House Price Index Report.
The national house price index recorded a 12-month average growth of 9.4% in Q1 2025, up from 8.7% in the previous quarter and well above the 0.3% recorded in the same period last year.
“The FNB House Price Index grew to 9.4% on a 12-month average in 1Q25, which is above the 8.7% observed in 4Q24 and considerably above the growth of 0.3% in 1Q24,” said Mandisa Van Wyk, Market Research Manager at FNB Namibia.
“This is now the highest growth recorded since the index moved out of contraction at the end of March 2023.”
The average house price climbed to N$1,345,270 in Q1 2025, reflecting a 1.9% increase from N$1,319,987 in the previous quarter and 8.6% higher than N$1,229,776 in Q1 2024.
Transaction volumes, a key indicator of market activity, rose by 10% on a 12-month average basis, a marked turnaround from the 0.9% growth in Q4 2024 and a steep recovery from a 26% contraction in Q1 last year.
“The surge in transaction volumes points to a notable uptick in residential buying activity, coinciding with sustained growth in housing prices,” Van Wyk noted.
From a regional perspective, the northern region recorded the strongest price growth at 12.1%, followed by central (7.3%), southern (2.5%) and coastal (2.1%) areas.
Volume growth was also positive in most areas, with central, coastal and southern regions posting increases of 14.3%, 25.6% and 40.0% respectively.
The northern region remained in contraction but improved to -2.2%, from -13.4% in the previous quarter.
In terms of property size, small and medium houses saw price growth of 5.3% and 0.5% respectively. Prices for large homes dropped by 7.7%, while luxury homes fell sharply by 33.4%.
Volume growth was strongest in the larger segments, with medium and large homes recording growth of 31.1% and 40.0% respectively. The luxury segment saw a 100% increase, although only four transactions were recorded.
Van Wyk suggested the uptick in demand may be driven by a segment of consumers who remain able to access the market despite ongoing affordability challenges.
“There are also indications that foreign interest may be contributing to this demand, alongside local investment in rental properties to meet rising accommodation needs,” she said.
Mortgage credit growth slowed to 0.6% year-on-year in March, while inflation rose to 4.2%. The Bank of Namibia held the repo rate steady at 6.75%.
“The FNB house price index is showing signs of recovery due to a significant increase in buying activity for the first quarter of 2025, as housing prices remain resilient,” Van Wyk said.
“A small proportion of the population seems to be driving the improved consumer sentiment for residential property, coupled with the limited supply in housing.”
Land delivery, however, declined sharply, with only 85 plots sold during the quarter – down from 150 in Q4 2024. The southern region led growth with a 73.8% increase in plots sold, while the northern region recorded a decline of 6.5%.
Van Wyk warned that supply-side constraints, particularly the backlog of unserviced land, could continue to push prices up.
“Looking ahead, we expect housing prices to remain elevated with increased demand by individuals who can afford property through alternative funding
