Building approvals rebound in June

Namibia's building sector recovered in June after a weaker performance the previous month, with higher approval volumes across the country's two largest property markets signalling renewed activity despite continued pressure on larger developments, according to Simonis Storm.

In its June Building Plans Statistics report, economist Almandro Jansen said the first half of 2026 had been characterised by a recovery in the number of projects rather than their value, reflecting affordability pressures and cautious investment.

Windhoek approved 197 building plans during June, up 42.8% from May and 24.7% higher than the same month last year.

The value of approved plans rose to N$197.8 million, an increase of 47.7% from May and 50.7% higher than June 2025.

Simonis Storm said the average value of approved projects was about N$1 million, indicating that residential developments continued to dominate activity.

During the first six months of the year, Windhoek approved 1,001 building plans, compared with 933 during the same period in 2025.

Although the total value of approvals fell to N$791.8 million from N$1.73 billion a year earlier, the report said last year's figure was inflated by a single project worth more than N$1 billion approved in March 2025.

Excluding that development, Simonis Storm said the value of the 2026 building pipeline was broadly in line with last year, suggesting the market had shifted towards a greater number of smaller, lower-cost projects.

Construction completions also improved during June.

Windhoek recorded 25 completed projects, up from 21 in May, while the value of completed work increased to N$54.6 million from N$37 million.

However, Simonis Storm said the gap between approvals and completed projects remained wide, indicating continued delays in project delivery amid tighter financing conditions.

Swakopmund also posted a solid first half of the year.

Although approvals eased from May, the town recorded 453 approved building plans worth N$458 million during the first six months of 2026, compared with 365 plans valued at N$359.6 million over the same period last year.

That represented increases of 24.1% in approval volumes and 27.2% in values, outperforming Windhoek on both measures.

The report attributed the stronger coastal performance to continued lifestyle migration, tourism-related investment and foreign buyer interest.

Simonis Storm said higher borrowing costs following the Bank of Namibia's decision to raise the repo rate to 6.75% in June were likely to remain a headwind for developers during the second half of the year.

Despite the June rebound, the report concluded that the sector's recovery remained uneven, with developers continuing to favour smaller, quicker-to-build projects while larger investments await final decisions in the oil, gas and green hydrogen industries.