Namibia: Windhoek Sees Spike in Building Plan Approvals in May

The City of Windhoek experienced a notable increase in building plan approvals during May, with 179 plans worth N$177.6 million given the green light. This is according to recently released data by IJG Research and Securities.

The figures represent a monthly increase of 33.6% in number and 21.6% in value when compared to April. However, on an annual basis, overall approvals declined by 4.8% in number and 6% in value year-on-year.

Year-to-date, property additions and residential properties have seen a decrease in approvals by N134.4million and N70.5 million, respectively, compared to the same period last year. In contrast, approvals for commercial and industrial properties are N$255.4 million higher than during the same period last year, indicating a shift in development focus.

Meanwhile, the number and value of building completions dropped compared to April, with 16 buildings completed at a total value of N$23.2 million. This represents a year-on-year decline of 90.2% in number and 71.4% in value.

There were 144 property additions approved in May with a total value of N$43.7 million, reflecting a 27.4% m/m increase in the number, while the value slightly dropped by 0.7% m/m from N$44 million in April.

In May, 30 residential units, worth N$49.1 million, were approved, representing an 87.5% m/m increase in number and 55% in value terms, although only three residential units worth N$5.1 million were completed, marking the lowest monthly number and value of residential completions recorded since April 2020.

Furthermore, five commercial and industrial building plans were approved, totalling N$84.9 million. While the number of approvals was unchanged from April, the total value increased by 265% m/m, from N$23.2 million.

IJG acknowledged the increase in building plan approvals, which were supported by a rise in both the number and value of plans approved.

"However, the annual figures reflected underlying softness in the construction sector, with year-to-date approvals for additions and residential properties still lagging behind 2024 levels. In addition, momentum in actual construction execution remains weak," they added.

Read the original article on Namibia Economist.