By: Staff writer
In the last twelve months, 2,318 buildings worth N$1.56 billion were approved by the City of Windhoek.
This represents a contraction of 7.4% in number- and 21.8% in value terms over the comparative 12-month period a year ago.
This comes as a total of N$72.7 million worth of buildings (167 building plans) were approved by the City of Windhoek in February, translating to a 111.4% m/m increase from January’s low base of 79 approvals.
In comparison, N$22.1 million worth of buildings were approved in January, representing a 229.0% m/m increase for February.
Of these, 50 building plans worth N$41.6 million were completed during the month.
According to IJG Securities, although February’s additions to properties approvals data is significantly better than we saw in both January and December, it is still below the average monthly approvals we saw during 2022 in both number and value terms.
“On a 12-month cumulative basis, the number and value of additions to properties remain roughly in line with the levels seen during the same 12-month period a year ago. 26 Additions, worth N$12.6 million were completed during the month,” IJG Securities said.
This means that for the year thus far, 246 building plans worth N$94.8 million have been approved, which is a 37.7% y/y decrease and down 66.7% y/y in value terms.
Meanwhile, last month saw three new commercial and industrial units approved for the third consecutive month.
In value terms, according to IJG, the approvals amounted to just N$1.95 million.
“This brings the year-to-date approvals to six commercial buildings worth N$2.1 million, which translates to a 14.3% y/y decrease in the number of plans approved and a 75.6% y/y decrease in value terms.”
“On a rolling 12-month perspective, the number of commercial and industrial approvals stood at 56 worth N$156.2 million, compared to the 40 units worth N$172.7 million over the corresponding period a year ago. Only 1 commercial unit valued at N$700,000 was completed in February.”
The firm has further observed that 2023 is off to a slow start in terms of planned construction activity in the capital.
“Building plan approvals is a leading indicator of economic activity in the country and the above data implies that certain sectors of the Namibian economy are still faced with hardship,” IJG concluded.
