By: Peneyambeko Jonas and Nghiinomenwa-vali Hangala
As of the end of December 2025, the national average price for a house stood at N$1.42 million, according to the First National Bank House Price Index for the 4th quarter of 2025.
However, for those who find themselves in coastal and central areas, the situation is a bit different, as house prices tend to be more expensive compared to other parts of the country. Coastal houses’ price average stands at N$1.78 million, with the central areas standing at N$1.54 million.
For the northern and southern parts of the country, house prices average around N$980,000 and N$896,000 respectively.
The Index reveals price growth by the end of the 4th quarter across all housing segments except for the luxury segment, alongside persistent structural challenges. Affordability constraints, land delivery bottlenecks, and subdued household incomes served as examples of these challenges which continue to weigh on the sector, noted FNB market researcher, Mandisa van Wyk.
Van Wyk explained that the positive price changes reflect improved buyer sentiment compared to the volatility experienced in earlier years, supported by easing inflationary pressures and a more predictable interest rate environment. However, growth remains uneven across segments and regions, highlighting deep-rooted supply and demand imbalances.
One of the most pressing constraints identified in the report is limited land delivery. The slow release of serviced residential plots continues to restrict housing supply, particularly in urban centres such as Windhoek, Walvis Bay, and Swakopmund. This has sustained upward pressure on prices despite relatively weak demand, creating a paradox where affordability deteriorates even as transaction volumes remain subdued.
Van Wyk added that affordability remains a central concern. Rising construction costs, stagnant real wage growth, and high debt servicing burdens have reduced the pool of qualifying homebuyers, especially among first-time entrants.
FNB’s analysis also points to changing buyer behaviour. Those on the lookout for property are increasingly cautious, favouring smaller homes, sectional title units, and properties in established suburbs with reliable infrastructure.
This trend aligns with broader regional patterns in Southern Africa, where urban densification and cost-conscious purchasing are reshaping residential development. Using a 12-month average, a house in a small segment will cost around N$923,000, while in the medium segment, most go for around N$2.2 million. From a macroeconomic perspective, Namibia’s housing market mirrors the country’s slow but steady economic recovery, Van Wyk explained.
Improved performance in mining, logistics, and tourism during 2025 has helped stabilise employment, indirectly supporting housing demand. However, economists caution that without accelerated land servicing, streamlined municipal approvals, and targeted affordable housing interventions, the market’s recovery will remain fragile.
The report further underscores the importance of coordinated public-private partnerships. Banks, developers, and local authorities all have a role to play in unlocking housing supply, particularly for lower-income earners.
Van Wyk also recommends innovative financing models, mixed-use developments, as expanded rent-to-buy schemes are increasingly viewed as necessary tools to bridge the housing gap.
In its Outlook report, FNB expects house price growth to remain modest in 2026, broadly tracking inflation rather than outpacing it. This suggests a period of consolidation rather than rapid expansion. While this may temper speculative activity, it could ultimately support a healthier and more sustainable housing market.
