Category Archives: Building Plans

A total of 170 building plans were approved by the City of Windhoek in April, 12 more than in March. In values terms, approvals rose by N$40.4 million to N$169.04 million in April from N$128.6 million worth of approvals in March. A total of 62 building plans were completed  at a value of N$55.2 million in April. Year-to-date, N$743.5 million worth of building plans have been approved, 41.3% higher than the corresponding period in 2018. On a twelve-month cumulative basis, 2,200 building plans were approved worth approximately N$2.06 billion, 7.0% lower in value terms than cumulative approvals in April 2018.

The largest number of building plan approvals in April were made up of additions to properties. 132 additions to properties were approved with a value of N$59.3 million, 24.3% more in value terms than in April 2018. Year-to-date 527 additions to properties have been approved with a value of N$300.0 million, a 19.3% y/y decline in value terms.

New residential units accounted for 32 of the total 170 approvals registered in April, an increase of 14.3% m/m compared to the 28 residential units approved in March. In value terms, N$33.8 million worth of residential units were approved in April, 5.3% more than the N$32.1 million worth of residential approvals in March. Year-to-date 121 residential units have been approved, 25 more than the corresponding period in 2018. In monetary terms, N$275.1 million worth of new residential plans have been approved year-to-date, an increase of 126.0% when compared to the corresponding period last year.

6 New commercial units valued at N$76.0 million were approved in April, bringing the year-to-date number of approvals to 14, worth a total of N$168.4 million. On al rolling 12-month perspective the number of commercial and industrial approvals have slowed to 43 units worth N$N$515.9 million as at April, compared to the 51 approved units worth N$680.0 million over the corresponding period a year ago.

In the last 12 months 2,200 building plans have been approved, increasing by 13.6% y/y in terms of number of approvals, but contracting by 7.0% y/y in terms of value. The growth in the cumulative number of plans approved has been driven mainly by approvals in additions to properties and new residential units which are of lower relative value. Growth in commercial and industrial construction activity remains extremely subdued as the decrease (on a 12-month cumulative basis) in credit extended to corporates also reflects.

Commercial banks currently carry a healthy monthly average liquidity position of N$3.79 billion, providing sufficient levels of loanable funds. Consumers and corporates alike therefore seem curtailed by waning appetite for credit, or are simply not meeting affordability requirements for loans with which to pursue construction projects. A lack of confidence in the economy is acting on both willingness to invest form individuals and corporates as well as appetite for risk from banks.

A total of 158 building plans were approved by the City of Windhoek in March, 14 fewer than the 172 approvals recorded in February. The value of approvals was N$44.5 million lower at N$128.6 million in March, a 25.7% m/m decrease. The number of completions for the month of March stood at 37, valued at N$75.0 million. The year-to-date value of approved building plans reached N$574.5 million, 33.7% higher than in the first quarter of 2018. On a twelve-month cumulative basis, 2,194 building plans have been approved as at the end of March, an increase of 14.5% y/y. The 12-month cumulative value of plans approved reached approximately N$1.98 billion, a decrease of 11.0% y/y.

Additions to properties made up 127 of the 158 approved building plans recorded in March. This is a 7.3% m/m decrease in additions from the 137 additions recorded in February. Year-to-date 395 additions to properties have been approved with a value of N$240.8 million, a 25.7% y/y drop in terms of value.

New residential units were the second largest contributor to the number of building plans approved with 28 approvals registered in March, a 12.5% m/m decrease compared to the 32 residential units approved in February. In value terms, N$32.1 million worth of residential units were approved in March, 22.5% less than the N$41.4 million worth of residential approvals in February. 89 New residential units have been approved in the first quarter of 2019, 48% more than during the corresponding period in 2018. The year-to-date value of residential approvals reached N$241.3 million, 198.6% higher than during the first quarter of 2018.

Commercial and industrial building plans approved in March amounted to 3 units, worth N$6.1 million. This is the same number of units approved as in the prior month, but a decrease of 62.4% m/m and 15.9% y/y in value terms. Year-to-date, 8 plans for commercial and industrial purposes have been approved, valued at N$92.4 million. On a rolling 12-month perspective the number of commercial and industrial approvals have slowed to 38 units as at March, compared to the 54 approved over the corresponding period a year ago.

The 12-month cumulative number of building plans approved increased by 14.5% as at the end of March when compared to the corresponding period in 2018. A total of 2,194 building plans to the value of N$1.98 billion were approved over the last 12 months which represents a decrease in value of 11.0% y/y. The number of building plans approved, on a cumulative 12-month basis, has been increasing steadily since December 2017, but the value of cumulative plans has been decreasing since May 2018. We expect the economy, and construction activity as a result, to remain under pressure over the short-term, as both consumer and business confidence remains low.

A total of 172 building plans were approved by the City of Windhoek in February. This is a slight increase in the number of plans approved on a monthly basis when compared to the 162 building plans approved in January. In monetary terms, the approvals were valued at N$173.2 million, a decrease of N$99.5 million compared to last month. 49 Buildings with a value of N$34.36 million were completed during February. The year-to-date value of approved building plans currently stands at N$445.8 million, 28.4% higher than the corresponding period in 2018. On a twelve-month cumulative basis, 2,165 building plans worth approximately N$1.94 billion were approved, an increase in number of 9.4% y/y, but a decrease of 13.8% in value terms over the prior 12-month period.

The largest portion of building plan approvals was once again made up of additions to properties, from both a number and value perspective. 137 additions were approved in February, almost matching the number of additions approved in January. Year-to-date 268 additions to properties have been approved with a cumulative value of N$150.3 million, a decline of 45.0% y/y in terms of value compared to the same period in 2018.

New residential units were the second largest contributor to the number of building plans approved with 32 approvals registered in February, 3 more than in January. 61 new residential units worth N$209.3 have been approved year-to-date, an increase of 271.8% when compared to the value of approvals in the corresponding period last year. This increase is, however, off of a low base figure in 2018.

3 Commercial and industrial building plans were approved in February, worth N$16.3 million. This is one more than in the prior month, bringing the total number of commercial approvals for 2019 to 5. In value terms, commercial building plan approvals decreased by 76.8% m/m, but increased 186.5% y/y. On a 12 month-cumulative basis, the number of commercial and industrial approvals has decreased by 23.5% y/y in February to 39 units, worth approximately N$449.0 million, a decrease of 33.3% in value terms over the prior 12-month period.

During the last 12 months 2,165 building plans have been approved, increasing by 9.4% compared to February 2018. These approvals amounted to N$1.94 billion, which is a decrease in value of 13.8% y/y. The overall decrease in value of cumulative plans approved is concerning, as this shows a considerable decrease of construction activity in the city, especially when taking into account that the measure is in nominal value terms and does not account for inflation.

Growth in commercial and industrial construction activity remains extremely subdued as the decrease (on a 12-month cumulative basis) in credit extended to corporates also reflects. It is evident from the commercial figures that business confidence is low, as businesses are not investing in expansionary projects and, as a result, the economy is likely to remain under pressure over the short-term.