By: Hee-Dee Walenga
Speaking on Eagle FM’s Ulwazi, President of the Namibia Institute of Town & Regional Planning, Fransisco Neshila, provided some insight on the property market analysis of Oshakati.
With data provided by an AI database he privately created, Neshila stated that since 2016, over 7,000 property and land transactions have taken place, with a total value of N$2.8 billion.
The Ekuku area accounted for N$1.6 billion of the total figure.
N$400 million in transactions occurred in Oshakati Central; Efidi N$44 million; N$35 million in Oshakati Extension 5; Onawa N$24 million; Ompumbu N$35 million; Ekuku Ext 2 provided N$31 million, and Oshifu N$162 million.
“Oshakati knows that Ekuku is their revenue generation area, that is why they are pushing for expansion in that area,” Neshila explained.
The average property price for the period under review was N$403,559.
65% of the transaction volume consists of vacant serviced land, which refers to a fully serviced piece of land with no top structure.
Oshakati, historically known as ‘Oshakati-Shipindi,’ loosely translating to ‘trading area,’ has developed into one of the main economic hubs of central northern Namibia.
“It’s one of the most financially driven informal trade centres. The Oshakati Town Council invested a lot in their informal trading capacity, close to a tune of N$100 million,” stated Neshila.
He indicated that the expansion of towns, particularly in the north of Namibia, is faced by the challenge of bordering communal land areas, which requires intense negotiations with traditional authorities.
Neshila stated that the Oshakati Town Council is currently in the process of expanding the Uukwangula area.
“The livelihood of the urban nodes, especially in the northern areas, is basically sustained by the people from the communal areas. It is very important that you need to protect that golden goose that is feeding you,” he explained.
Oshakati currently has 20 properties listed on the market, of which 80% are apartments, and four are houses.
“What it tells you is that there’s not very good returns on the rental market in Oshakati,” Neshila highlighted.
Of the 20 listings, the majority are located in Oshakati Central and go for ~N$5,000 per month. Properties in Oshakati East range between N$15,000 and N$30,000 per month, according to the data.
Neshila also stated the appetite for boutique hotels or Airbnb’s in Oshakati has increased, which he attributed to the town being the destination for corporate conferences, the Totem Expo, transport infrastructure, as well as doctors and lawyers using Oshakati as their regional base.
The lack of regulation around Airbnb in Namibia is another reason why Oshakati property owners are turning to the platform, which Neshila cautioned against.
Find the full show here.
