By: Staff Writter
Otjomuise has emerged as a hotspot for construction activity, recording the highest value of approved house plans by the City of Windhoek for January 2024, totaling N$18.2 million.
Financial analysts at Simonis Storm Securities attribute this surge in approved building plans in Otjomuise, particularly in the extension five area, to the recent availability of serviced erven. This availability has enticed numerous developers to invest in the area, driving the increase in approved building plans.
However, despite the demand in Otjomuise, the overall construction sector in Windhoek faces challenges.
The City approved only 76 building plans out of 122 received last month, marking an 11.6% year-on-year decrease and a 27.6% month-on-month decrease.
In January, The Villager reported a bleak outlook for the construction sector in Windhoek and Swakopmund due to a decline in projects.
Windhoek experienced decreases in both approved building plans and completed projects compared to the previous month and year.
The total value of the newly approved City building plans for January amounted to N$53.8 million, with 31 building projects completed during the month, totaling N$47.4 million.
The highest value of approved building plans was for houses, amounting to N$41.8 million, followed by additions valued at N$8.6 million.
Meanwhile, in Swakopmund, there was a notable decrease in construction activity. Between December 18, 2023, and January 15, 2024, 22 building plans were submitted, with an estimated total value of N$43.5 million. However, only 25 building plans worth N$29.8 million were approved in January 2024, compared to 80 plans approved in December 2023.
Similarly, there was a significant decline in completed projects, with only six projects completed during the period, amounting to N$4.6 million.
These trends signal a concerning outlook for the construction sector, influenced by economic uncertainty and a high-interest rate environment, which typically result in reduced demand for cyclical sectors like construction and materials.
