A total of 195 building plans to the value of N$365 million were approved by the City of Windhoek in May 2015. On a year to date basis 1,073 plans were approved with a value of N$937.7 million versus 1,104 plans valued at N$1,158 million last May. On a year to date basis the value of plans approved was down 19% although recovering during May. On a month to date basis the value of plans approved rose 232%. The large increase in the value of total plans approved during the month is attributed to the value of additions to existing property growing significantly. The below chart illustrates the elevated value of plans approved in May, with only two months during the last five years exhibiting a higher value of plans approved.
While the 12 months cumulative number of plans approved is still well down from peak levels, the 12 month cumulative value of plans approved has rebounded due to the strong values in May. The 12 month cumulative number of plans approved fell to 2,815 from 2,834 in April, while the 12 month cumulative value of plans approved rose from N$1,879 million to N$2,079 million.
In our view the construction sector will remain one of the leading growth and development sectors for 2015 in the Namibian economy, with both private sector and government having aggressive development plans. However, many such plans fall out of the Windhoek municipal area, and as such are not captured in the monthly building plan statistics.