Category Archives: Building Plans

In November the City of Windhoek approved 263 building plans, a 3.0% m/m decrease from the 271 approved in October. The total value of approvals decreased by 2.1% m/m to N$216.9 million. On a 12-month cumulative basis, the number of approvals has risen by 9.3% y/y to 2,468 but the value of these approvals has declined by 1.1% y/y to N$1.92 billion. Year-to-date there have been 2,353 approvals valued at N$1.85 billion. 139 construction projects were completed in November at a value of N$99.9 million. In terms of value, this equates to a 147.1% y/y increase and a 71.0% m/m increase. However, on a 12-month cumulative basis the value of completed projects is down 46.3% y/y.  

185 additions to properties were approved at a value of N$107.9 million in November, making November the best month, in terms of value, for addition approvals in 2021. This represents a 12.1% y/y increase in number and 13.5% y/y increase in value. Month-on-month this translates to a 7.5% decrease in number but a 37.9% increase in value. 47 additions to properties were completed in November at a value of N$11.1 million. The latter months of 2020 saw a particularly slow rate of construction completions, therefore the year-on-year change in the value of additions completed has doubled (approximately 101.1% y/y increase in value). On a year-to-date basis, the number of additions to properties completed stands at 855, at a value of N$233.8 million. While the number of additions completed by this time last year is similar (866 by November 2020) the value of those additions stood significantly higher, at N$444.8 million.   

75 residential units were approved in November at a value of N$105.5 million, translating to an 8.7% m/m increase in number and a 29.6% m/m increase in value. Year-to-date 808 units have been approved at a value of N$968.8 million. These numbers compare favourably to last November’s year-to-date figures when only 610 residential units were approved at a value of N$798.2 million. Accordingly, on a 12-month cumulative basis, the value of residential approvals increased by 9.3% y/y and the number of approvals by 7.9% y/y. 90 residential units were completed in November at a value of N$70.8 million, making November the best month for the number of residential unit completions in 2021. On a 12-month cumulative basis the number of residential properties completed now stands at 596, with a collective value of N$540.6 million. Following the trend seen in completions of additions to properties, the 12-month cumulative value figure for residential units completed has fallen by 46.3% y/y.

In November three commercial units with a combined value of N$3.5 million were approved. Year-to-date 34 commercial units worth N$160.3 million have been approved. In terms of value, that’s 47.4% lower than at the same time last year. Two commercial units were completed in November at a value of N$18.1 million. After six consecutive months with zero completions Windhoek has now seen back-to-back months with commercial completions, the first time that has happened in 2021. Encouragingly, this means that the year-to-date value of commercial construction projects completed is higher now than it was at the same time in 2020.

On a 12-month cumulative basis, the number of building plans completed fell by 8.3% y/y and by 46.3% y/y in terms of value. Given the severity of the general economic contraction in the past 18 months this is not surprising. The year-on-year change of the 12-month cumulative value of plans completed is therefore likely to remain negative for several more months.

As the year draws to a close, we now have a sufficiently detailed picture of how well the construction industry faired in 2021. In a phrase, 2021 was not all that bad. The year-to-date figure for total building plan approvals stands at N$1.85 billion, that’s a 3.9% y/y increase from the N$1.78 billion approved by last November. The success and rate with which these approvals are converted into completions will go a long way to determining the fortunes of the construction sector in 2022.  While the year-to-date value of total building completions remains well off 2020 levels, in the context of the last five years the figure (N$796.5 million y-t-d completions by November 2021) doesn’t look out of place (5-year November average; N$913.8 million).   

In October the City of Windhoek approved 271 building plans, an 18.9% m/m increase from the 228 approved in September. The total value of approvals increased by 40.2% m/m to N$221.7 million. Year-to-date there have been 2,090 approvals, valued at N$1.63 billion. This year-to-date figure is only 5.8% higher in value terms than at the same time last year. With only two months left in the year it is likely that the value of building plans approved in 2021 will be similar to that of 2020. On a 12-month cumulative basis, the number of approvals rose by 13.9% y/y to 2,476 while the value of these approvals rose by 6.1% y/y to N$1.94 billion. 86 construction projects were completed in October at a value of N$58.4 million. Year-on-year this equates to a 32.2% increase in number and 6.54% increase in value. Given that September saw yearly highs in both the number and value of projects completed the month-on-month changes in completions come in at a somewhat distorted 63.2% decrease in number and 51.4% decrease in value. On a 12-month cumulative basis the value of completed projects is down 55.7% y/y.

200 additions to properties were approved at a value of N$78.3 million, a 39.9% m/m increase in number and 22.0% m/m increase in value from September. Year-to-date, 1,326 additions have been approved at a value of N$608.5 million. Broadly consistent with 2020’s figures, this represents a 1.9% y/y decrease in number and 5.2% y/y increase in value from the same time last year. 43 additions were completed in October at a value of N$10.43 million. Given the large variance in both the number and value of additions completed over the last 24 months there is not much insight to be gained from looking at the month-on-month and year-on-year changes in the number and value of additions completed, suffice to say that October was a marginally below (pandemic-era) average month for addition completions.

69 new residential units were approved in October at a value of N$81.4 million. This represents a 14.8% m/m decrease in number and 6.3% m/m decrease in value from September’s figures. Year-to-date, 733 units have been approved at a value of N$863.2 million. This represents a year-to-date increase in the number and value of residential units by 44.9% y/y and 29.6% y/y respectively. On a 12-month cumulative basis, the number of residential units approved increased by 59.1% y/y and 24.9% y/y in value.  41 new residential units were completed in October at a value of N$32.6 million. This translates to a 12.8% y/y decrease in number and 17.0% y/y decrease in value. Additionally, October’s completion figures equate to a 43.1% m/m decrease in number and 56.8% m/m decrease in value. On a 12-month cumulative basis, the number of residential properties completed stands 557, at a value of N$504.8 million. This represents a 12-month cumulative decrease in value of 52.0% y/y.

In October two commercial units, with a combined value of N$62.0 million, were approved. In terms of value, this was the best month for approvals of commercial construction projects in 2021. So, while year-to-date the number of commercial projects approved increased by only two, from 29 in September to 31 in October, the year-to-date value of commercial approvals increased by a much more substantial 65.4%, from N$94.8 million to N$156.8 million. A streak of six consecutive months with zero commercial building project completions was finally snapped in October as two commercial projects were completed at a value of N$15.35 million. In terms of value, October was the best month for commercial construction project completions in just over two years.

On a 12-month cumulative basis, the number of building plans completed fell by 22.5% y/y and 55.7% y/y in terms of value. The year-on-year change of the 12-month cumulative value of plans completed will likely, as alluded to in previous reports, remain negative for several more months as the effects of the pandemic and past lockdowns continue to weight on the figure.

12-month cumulative approvals are up 13.9% y/y in number and 6.1% y/y in value. While this doesn’t read as a resounding comeback story for the construction industry, it does at least show that the flow of approvals remains consistent.  

The City of Windhoek approved 228 building plans in September, a 9.9% m/m decrease from the 253 approved in August. The total value of approvals decreased by 2.2% m/m to N$158.1 million. So far in 2021 there have been 1,819 approvals, valued at N$1.41 billion. This year-to-date figure is 14.4% higher in number terms and 16.1% higher in value terms than at the same time last year. On a 12-month cumulative basis, the number of building plans approved rose by 20.7% y/y to 2,511, while the value of these approvals rose by 25.1% y/y to N$2.05 billion. 234 construction projects were completed in September at a value of N$120.3 million, a high in both number and value terms for the year. Year-to-date, 1,203 plans, valued at N$638.2 million have been completed, a 54.8% contraction in value terms compared to the same period a year ago. On a 12-month cumulative basis the value of completed projects is down 57.3% y/y.

Over the past decade additions to properties have averaged roughly 44% of the total value of approved construction projects. On trend, additions to properties made up 41% of the total value of approvals in September. 143 additions were approved at a value of N$64.2 million, a 13.3% m/m decrease in number, but a 12.5% m/m increase in value from the N$57.1 million approved in August. Year-to-date, 1,126 additions have been approved at a value of N$530.2 million, a 3.4% decrease in number, but a 3.6% increase in value from September 2020. Compared to the preceding three months September saw a large spike in the number and value of additions completed, with 162 additions completed in the month at a value of N$44.7 million. In fact, September saw a greater number, and value, of additions completed than in the previous three months (June, July and August) combined.

New residential units were the second largest contributor to the total number of building plans approved with 81 approvals. Residential units did however contribute the most value, with total residential approvals valued at N$86.9 million. In terms of value, that N$86.9 million represents a 3.3% m/m increase from August’s figure of N$84.1 million. Year-to-date, 664 units worth N$781.8 million have been approved. This represents a year-to-date increase in value of residential units of 84.7% y/y. On a 12-month cumulative basis, the number of residential units approved increased by 98.0% y/y and by 90.0% y/y in value.

72 new residential units were completed in September at a value of N$75.6 million. In terms of value, September was the best month for residential construction in Windhoek in 2021. On a 12-month cumulative basis, the number of residential units completed comes to 563 at a value of N$511.4 million and while this translates to a year-on year decrease of the 12-month cumulative figure, the number and value of completed residential construction projects from July through to September 2020 was unnaturally high. So, with those values now omitted from the 12-month cumulative calculations it is unsurprising to see that the 12-month cumulative value of residential units completed has decreased by 50.8% y/y in value. This has everything to do with those three months in 2020 seeing abnormally high figures for the value of completed projects (see last month’s report for a more detailed explanation of why that is) and nothing do with 2021 being an unusually slow year for residential construction.

In September four commercial units, valued at N$7.0 million, were approved. Year-to-date, 29 commercial buildings have been approved at a combined value of N$94.8 million. September also marks the sixth consecutive month with zero commercial building project completions. Over this time, 25 projects have been approved. So, while projects are not being completed the fact that commercial projects continue to be approved is encouraging, although the value of these projects are significantly smaller than they were pre-pandemic.

On a 12-month cumulative basis, the number of buildings completed fell by 30.5% y/y and 57.3% y/y in terms of value. As alluded to in the previous paragraph, and as explained in the conclusion of the previous report, there is a simple mechanical explanation for this and now the 12-month cumulative value of plans completed simply gives a more accurate picture of short-term construction trends than it did two months ago. Additionally, the year-on-year change of the 12-month cumulative value of plans completed will remain negative for several more months while the overall health of the construction industry is likely to hover around its early 2019 level.

12-month cumulative approvals do paint a better picture, with a 20.7% y/y increase in number terms and 25.1% y/y in value, however these increases are from a low base and the majority of approvals continue to be made up of additions to properties which are of lower relative value.