By: Erastus Andreas
Namibia’s housing market continues to show resilience, with property prices rising even as sales activity slows. According to the latest FNB House Price Index, average house prices increased by 7.4% in the second quarter of 2026, lifting the national average to N$1.46 million. This is higher than N$1.44 million in the first quarter and N$1.36 million a year ago, showing that prices remain on an upward trend despite challenges in the market.
At the same time, transaction volumes are losing momentum. Sales grew by only 2.8% compared to the same period last year, down from 10.4% in the first quarter and 15.5% in 2025.
According to analysts, this slowdown highlights affordability pressures and supply shortages that continue to shape the housing sector.
Mandisa Van Wyk, Market Research Manager at FNB Namibia, said the slowdown in sales reflects the difficulties faced by ordinary buyers.
“Prices are being pushed up by supply shortages and high building costs, but many buyers are struggling to afford homes. This is why we see fewer transactions even though prices keep rising,” she explained.
Property agent Samuel agreed, noting that rising costs are the main reason behind the increase in house prices.
“From an agent’s point of view, house prices are increasing mainly because the cost of developing a property has gone up. Land, building materials, labour, transport and other related costs are becoming more expensive. Even when there are fewer buyers in the market, developers and agents must recover these costs,” he said.
Samuel added that high construction costs are slowing down affordable housing projects.
“Luxury properties can sometimes provide better returns, while developing affordable housing requires careful planning and often support from government or other institutions. There is still a very strong need for small and medium-sized homes in Namibia, particularly for young people and first-time buyers,” he explained.
According to the report, regional differences remain clear. Prices in the central region grew by 8.9% , while the coastal region rose by 11.9%.
In contrast, the northern region fell by 0.7% and the southern region dropped by 5.2%. Luxury homes saw the biggest jump, rising 21% to N$9.25 million, while small and medium homes grew only slightly at 2.6% and 2.1%.
Mortgage lending showed a small recovery at 2.1% in June, but it is still weak compared to past years. The Bank of Namibia’s interest rate increase in June is expected to make borrowing harder, adding more pressure on buyers.
Looking ahead, Samuel believes affordability will remain the biggest challenge. “Prices may not necessarily continue increasing at the same pace, but I do not expect them to fall significantly unless there are major reductions in construction, land or financing costs,” he said.
According to FNB, Namibia’s housing market is increasingly concentrated among wealthier households and foreign buyers, while lower and middle income families are struggling to keep pace.
The demand for housing remains strong, but the challenge is ensuring that homes are affordable for the people who need them most.
