A total of 146 building plans were approved by the City of Windhoek in May, representing a 15.6% m/m decrease from the 173 building plans approved in April. In value terms, the approvals were valued at N$118.1 million, an 11.4% m/m increase from the N$106.0 million approved in April. Year-to-date 912 building plans were approved worth N$637.1 million, a 9.5% y/y decrease in the number of plans approved and a 21.6% y/y decrease in value terms. On a twelve-month cumulative basis, 2,355 buildings with a value of N$1.79 billion were approved, a 12.3% decrease in the number of plans approved and an 11.3% decrease in value terms over the prior 12-month period. 43 building plans worth N$55.7 million were completed during the month.
In terms of both the number and value of approvals, additions to properties once again made up the largest portion of approvals. For the month of May, 114 additions to properties were approved with a value of N$67.8 million, the same number of approvals recorded in April. The value of the additions approved is 7.7% higher than last month and 22.4% higher than during the same month last year. 13 Additions worth N$5.9 million were completed during the month.
New residential units were the second largest contributor to the number and value of building plans approved with 30 approvals registered in May, 28 fewer than in April. In value terms N$47.0 million worth of residential units were approved in May, a 10.1% m/m increase. On a year-on-year basis, the value of approvals is however 49.3% lower than registered in May 2021. On a 12-month cumulative basis, the number of residential units approved decreased by 17.3% y/y to 772, the lowest since February 2021. 29 New residential units worth N$24.8 million were completed in May.
2 New commercial units valued at N$3.4 million were approved in May, compared to 1 approval worth N$380,00 in April and 4 units worth N$25.0 million approved in May 2021. Year-to-date there have been 12 commercial building approvals valued at N$42.5 million, which translates to a 25.0% y/y decrease in the number of plans approved and a 16.8% y/y decrease in value terms. On a rolling 12-month perspective, the number of commercial and industrial approvals remained steady at 33 units worth N$162.8 million, compared to the 33 units approved worth N$135.3 million over the corresponding period a year ago. Only 1 commercial and industrial unit worth N$25.0 million was completed in May.
As illustrated in the figure above and below, the cumulative value of building plans approved and completed continues to trend downward in both nominal and inflation-adjusted terms. Completed building plans decreased by 34.4% y/y in value terms to N$999.7 million on a 12-month cumulative basis. A total of 2,355 building plans to the value of N$1.79 billion were approved over the last 12 months which represents a decrease in value terms of 11.3% y/y and a 12.3% y/y decrease in the number terms. Additions to properties continue to contribute the majority of the cumulative approvals at 65.8% in number terms. The 12-month cumulative number of commercial and industrial approvals remains in the single digit territory which have been the case since June 2016, indicating a dearth of investment by enterprises. Building plans approved is a leading indicator of economic activity in the country and the above data implies that the Namibian economy is still showing signs of hardship.
