Category Archives: Building Plans

The City of Windhoek approved 211 building plans in July, a 77.3% m/m increase from the yearly low of 119 approvals in June. The value of the approvals increased by 13.4% m/m to N$145.6 million, compared to the N$128.4 million recorded in June. 2021 has now seen 1,338 approvals, valued at N$1.09 billion, 19.4% higher in number terms and 12.5% higher in value terms than during the same period last year. The increase is from a low base due to the strict lockdown measures early last year. On a twelve-month cumulative basis, building plan approvals rose by 24.5% y/y to 2,499, while the value of approvals rose 0.7% y/y to N$1.97 billion. A total of 36 completions to the value of N$24.4 million were recorded in July. Year-to-date, 838 building plans, valued at N$449.5 million have been completed, a 23.3% decline in number terms, and a 50.1% contraction in value terms, compared to the same period a year-ago.

Additions to properties made up most approvals. In July, 137 additions valued at N$64.9 million were approved, breaking a two-month streak of consecutive declines in both number and value terms. Year-to-date, 818 additions have been approved with a value of N$408.9 million, a 4.9% decrease in number, but a 4.9% y/y increase in value terms. Only 6 additions to properties were completed in July at a value of N$3.27 million, a 80.4% m/m decrease in value.

New residential units were the second largest contributor to the number of building plans approved with 73 approvals registered in July, 22 more than in June. In value terms, N$80.4 million worth of residential units were approved in July, a 4.0% m/m and 11.2% y/y increase. So far in 2021 500 units worth N$610.8 million have been approved. This translates to a year-to-date increase in value of 93.6% . On a 12-month cumulative basis the number of residential units approved increased by 146.6% y/y and by 86.3% y/y in value terms. 30 new residential units worth N$21.1 million were completed in July.

Only one commercial unit, valued at N$280,000 was approved in July. This brings the total number of commercial buildings approved in 2021 to 20, at a value of N$67.4 million. While 30 commercial buildings, valued at a N$137.6 million, have been approved in the last 12 months, no commercial units were completed for the fourth month running. Year-to-date, commercial and industrial completions account for only 1.3% of the total value of completions, well below the pre-pandemic 2019 average contribution.   

On a 12-month cumulative basis, the number of building plans approved increased by 24.5% y/y. This increase is however from a low base. 2,499 building plans to the value of N$1.97 billion were approved in the last 12 months, representing a 0.7% y/y increase in value. Additions to properties made up 63.9% of the cumulative number of approvals, but only 36.3% of the total value of approvals. Commercial and industrial building plan approvals are on course to be even lower in 2021 than in 2020 with only 20 approvals worth N$67.4 million thus far, compared to 31 approvals worth N$261.0 million at the same point last year. As building plan approvals is a forward-looking measure of expected construction activity this does not bode well for economic activity in the capital in general. The construction industry thus remains fragile.

The City of Windhoek rubber stamped 119 building plans in June, the lowest for the year and 55.9% lower than the 187 approvals in May. The value of the approvals fell by 25.7% m/m to N$128.4 million, compared to the N$173.0 million recorded in May. The first half of 2021 has seen 1,127 approvals, valued at N$941.5 million, 28.7% higher in number terms and 14.1% higher in value terms, than during the same period last year. The increase is however from a low base, following the strict lockdown measures early last year. On a twelve-month cumulative basis, building plan approvals rose by 30.4% y/y to 2,533, while the value of approvals rose 1.9% y/y to N$1.97 billion. A total of 124 completions to the value of N$58.6 million were recorded in June. Year-to-date, 802 building plans, valued at N$425.1 million have been completed this year, representing a 4.4% decline in number terms, and a 25.7% contraction in value terms, compared to the same period a year-ago, when construction activity halted for one out of the first six months.

In terms of the number of approvals, additions to properties once again made up the majority of approvals. Only 65 additions, worth  N$35.1 million were approved in June, representing a third consecutive month of decline in both number and value terms. 73 additions worth N$16.6 million were completed in June, representing a decrease in value of 40.8% m/m.

New residential units were the second largest contributor to the number of building plans approved with 51 approvals registered in June, 27 fewer than in May. In value terms, N$77.3 million worth of residential units were approved in June, a decrease of 16.5% m/m, but an increase of 6.9% y/y. In the first half of 2021, 427 new residential units were approved worth N$530.4 million, representing a 168.6% y/y increase in number and 118.0% y/y increase in value. This increase is however from a very low base, and shows just how severe last year’s contraction was. On a 12-month cumulative basis the number of additions approved has increased by 176.0% y/y as well as by 103.4% y/y in value terms. 51 new residential units worth N$41.9 million were completed during the month.

Three commercial units, valued at N$16.0 million got the nod in June, translating to a 16.5% m/m decrease in value terms. Nineteen commercial buildings, valued at N$67.1 million were approved in the first half of 2021. Despite the 32 approvals, valued at N$146.1 million in the last 12 months, no commercial units were completed for the third consecutive month. Year-to-date, commercial and industrial completions have accounted for 1.3% of the total value of completions, cementing the first half of 2021 as the worst 6 months in the last 31 years.

The 12-month cumulative number of building plans approved increased by 30.4% y/y in June, although the increase came from a low base. A total of 2,533 building plans to the value of N$1.97 billion were approved over the last 12 months, representing an increase in value of 1.9% y/y. Additions to properties have made up 62.9% of the cumulative number of approvals, but only 36.2% of the total value of approvals. Completed building plans increased 9.5% y/y in value terms to N$1.39 billion on a 12-month cumulative basis in June. Overall, each sub-category of completions as well as approvals experienced contractions in number terms compared to last month, indicating that construction activity will remain subdued over the short- to medium term.

The City of Windhoek approved a total of 187 building plans in May, representing a 25.2% m/m decrease from the 250 building plans approved in April. In monetary terms, the approvals were valued at N$173.0 million, a 26.1% m/m decrease. 183 buildings with a value of N$67.13 million were completed during May, a 27.9% m/m decrease in value terms. Year-to-date building approvals are 66.3% and 24.8% higher in number and value terms, respectively, than during the same period in 2020. This increase is however mostly due to stagnant construction activity during the lockdown last year. Year-to-date, the number of completed buildings increased by 23.3% y/y to 678, while the value of these completions fell marginally by 3.6% y/y from N$380.0 million in 2020 to N$366.5 million in 2021. On a twelve-month cumulative basis, 2,684 buildings with the value of N$2.01 billion were approved, an increase of 47.7% y/y in number, and 10.7% y/y in value.

In May, 105 additions to properties were approved with a value of N$55.4 million, while 125 additions worth N$28.1 million were completed during the month, as the category continues as the main contributor to the total approvals and completions. Additions to properties approved fell 36.7% m/m in number and 40.4% m/m in value terms.

New residential units were the second largest contributor to the total number of building plans approved in May, and the largest contributor in value terms. 78 new units worth N$92.6 million were approved in May, representing a 28.5% m/m decrease from the N$129.5 million worth of approvals in April. On a 12-month cumulative basis, residential units approvals recorded a 125.3% y/y increase in value. 58 new residential units worth N$39.0 million were completed during the month, representing an increase in value of 17.7% m/m, but a decrease of 21.6% y/y.

Four new commercial units, valued at N$25.0 million, were approved in May, translating to a 115.3% m/m increase in value terms. Year-to-date, there have been sixteen commercial building approvals valued at N$51.1 million, which is 33.3% lower in number terms and a 79.3% decrease in value terms compared to the same period last year. On a rolling 12-month perspective, the number of commercial and industrial approvals have slowed to 33 units worth N$135.3 million as at May, compared to the 56 approved units worth N$652.9 million over the corresponding period a year ago. No commercial and industrial units were completed in May.

The 12-month cumulative number of building plans approved increased by 47.7% y/y in May. A total of 2,684 building plans to the value of N$2.01 billion were approved over the last 12 months, representing an increase in value of 10.7% y/y. Additions to properties have made up 64.0% of the cumulative number of approvals, but only 38.4% of the total value of approvals. Completed building plans increased 17.0% y/y in value terms to N$1.52billion on a 12-month cumulative basis in May. The commercial sector has contributed a lacklustre 1% in terms of number of approvals and 6% in terms of value in 2021. This reflects the prolonged hardships experienced amongst corporates, which is unlikely to recover in the short-term, as the heightened infection levels of Covid-19 have resulted in a new economically restrictive lockdown measures.