The construction sector showed modest growth in July, with Khomasdal being the most active area in Windhoek.
The area boasted 23 approved plans primarily for additions and walls.
This follows an analysis of approved building plans for July by Simonis Storm Securities, particularly for the City of Windhoek and Swakopmund.
According to the analysis, Windhoek received 233 plans worth N$227,5 million in July - a slight increase from the 195 plans received in July last year.
However, the number of approved plans dropped to 189 from 209 during the same period last year.
Katutura and Goreangab came second, each with 16 approved plans, - predominantly for new houses.
"This suggests a focus on expanding residential infrastructure," Simonis says.
Otjomuise followed with 14 plans.
Pionierspark had 11 approved plans, which include two swimming pools, while Klein Windhoek and Wanaheda have nine and eight approved plans, respectively.
Academia and Olympia each have seven approved plans, indicating a steady level of activity.
Hochlandpark and Rocky Crest, with four approved plans each, show lower but still significant construction efforts.
Erospark, Okuryangava, and Prosperita each had three approved plans, demonstrating ongoing but minimal development.
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Brakwater and Cimbebasia showed the least activity, with one and three approved plans, respectively.
Auasblick has one new commercial building.
According to the analysis, Windhoek recorded 138 projects completed in July valued at N$115,1 million, a significant increase compared to only 48 completed in July 2023, valued at N$51,3 million.
"Swakopmund experienced a downturn, with only 39 plans, valued at N$50,1 million, submitted to the municipality in July 2024," Simonis says.
This marks a sharp decrease from the 66 plans submitted in July 2023, valued at N$64,7 million.
"The number of completed projects also fell, with 30 projects valued at N$29,2 million completed in July 2024," the analysts say.
Simonis further says mortgage credit growth remained sluggish, with a modest increase to 0,6% year on year in June from 0,3% year on year in May.
"The demand for mortgage credit is still muted, largely due to persistently high interest rates," notes the analysis, adding that despite the Bank of Namibia's earlier-than-expected interest rate cuts, the immediate impact on credit uptake by households and businesses remained limited.
"While these cuts have the potential to boost confidence and stimulate economic activity over time, their effects may not be felt immediately," Simonis says.
- email: matthew@namibian.com.na
