Approved building plans for Windhoek dropped by 24.9% to 1,770 for the first 11 months in 2023, representing a total value of N$1.41 billion, latest data reveals.
According to statistics from IJG Securities, the approvals are 17% lower in value terms.
This comes as a total of 141 building plans were approved in November, which is 38 less than the 179 approved in October, representing a 21.2% month-on-month (m/m) decrease.
“In monetary terms, the approvals were valued at N$79.4 million, 73.6% or N$221.0 million less than N$300.5 million witnessed in October, although it must be noted that October’s high base was primarily driven by two approvals worth a total N$217.2 million,” said IJG.
The firm noted that the downward trend witnessed during the year continued, with a 23.4% year-on-year (y/y) decline in the number of approvals on a twelve-month cumulative basis and a 19.7% y/y decrease in value terms when compared to the equivalent period last year.
Meanwhile, a total of 36 building plans worth N$57.9 million were completed during November.
In terms of additions to properties, only 118 property additions, valued at N$55 million, received the nod in November, slightly below the 124 and N$60.3 million monthly average witnessed during the year.
“Year-to-date, there have been approvals for 1,365 property additions worth N$662.9 million, representing a 14.3% reduction in the number of approvals recorded over the same period last year and 23.4% lower in value terms,” said IJG.
November saw 17 additions to properties worth N$27 million completed, slightly less than the 21 additions completed in October but almost triple in value terms from the low NS10.1 million base recorded in October.
IGJ highlighted that 20 residential building plans, worth N$20.5 million, were approved in November, slightly lower than the 22 plans approved in October and worth N$7.24 million less.
The residential approvals remained below this year’s monthly average of 32 and well below the N$38.7 million monthly average in value terms.
Similarly, the twelve-month cumulative number and value of residential approvals continued its consistent decline, and at the end of November, stood at 378 units valued at N$450.4 million.
IJG said this is 49.1% lower in number terms than those approved over the same period a year ago, and 39.9% less in value terms.
“Year-to-date, 354 residential plans, valued at N$426.7 million have been approved, marking a decrease of 50.2% in number terms and 37.3% in value terms, when compared to the same period over a year ago. 17 Residential units worth N$19.4 million were completed during the month,” said IJG.
The firm added that the year 2023, with the omission of pending December data, has seen very subdued planned construction activity in the capital.
This comes as even before adjusting for inflation, the value of approvals on a year-to-date basis (at N$1.41 billion) is roughly in line with figures last witnessed in 2010 and 2011.
