A total of 73 building plans valued at N$71.9 million were approved by the City of Windhoek in December 2015, while no data was recorded for the number of building plans that were completed during the month. Figures are seasonally lower over the festive period. On a year to date basis, 2,467 plans were approved with a value of N$2.196 billion, versus 2,846 plans valued at N$2.298 billion for 2014. This represents a 4.4% decrease in the value of plans approved on a year to date basis, largely due to base effects. The below chart illustrates the value of plans approved on a year to date basis compared to previous years and as one can see that 2015 missed the 2012, 2013 and 2014 mark.
382 residential units were approved by the municipality during 2015, with the yearly figure down 15.7% on 2014. Plans for flats and houses approved were valued at N$466.4 million in 2015 in contrast to the 453 plans worth N$477.9 million over 2014, down 2.4%.
The City of Windhoek approved 1,949 additions in 2015, a decrease of 14.3% from 2,273 plans approved in 2014, however, from a value perspective, the value of additions approved increased from N$897.3 million to 1.093 billion in 2015.
136 commercial and industrial plans were approved through 2015, 16 more than the 120 projects that got the go-ahead in 2014. The value of commercial and industrial building plans approved, however, is down 31.7% on 2014. The value of commercial and industrial buildings approved in 2015 is N$636.9 million, where as the value in 2014 was shy of the billion dollar mark at N$933.0 million. The lower year to date figure for commercial properties is mostly due to base effects as three large commercial projects were approved by the municipality in February 2014.
In our view, the Namibian construction sector will remain vibrant during 2016, with both private sector and government having aggressive development plans. However, as the construction at the B2Gold mine and the Tschudi copper mine being completed during 2015 and construction of the Husab mine nearly completed, the growth contribution from the construction sector is expected to decline. A major concern is the possibility of water restrictions in Namibia, especially the central region. Water shortages and restrictions in Windhoek will directly affect economic activity in Namibia, impacting water dependent industries, such as construction. If water restrictions are implemented in Namibia, it would have a severe impact on the construction industry as they are heavily reliant on water supply.