Category Archives: Building Plans

A total of 73 building plans valued at N$71.9 million were approved by the City of Windhoek in December 2015, while no data was recorded for the number of building plans that were completed during the month. Figures are seasonally lower over the festive period. On a year to date basis, 2,467 plans were approved with a value of N$2.196 billion, versus 2,846 plans valued at N$2.298 billion for 2014. This represents a 4.4% decrease in the value of plans approved on a year to date basis, largely due to base effects. The below chart illustrates the value of plans approved on a year to date basis compared to previous years and as one can see that 2015 missed the 2012, 2013 and 2014 mark.

382 residential units were approved by the municipality during 2015, with the yearly figure down 15.7% on 2014. Plans for flats and houses approved were valued at N$466.4 million in 2015 in contrast to the 453 plans worth N$477.9 million over 2014, down 2.4%.

The City of Windhoek approved 1,949 additions in 2015, a decrease of 14.3% from 2,273 plans approved in 2014, however, from a value perspective, the value of additions approved increased from N$897.3 million to 1.093 billion in 2015.

136 commercial and industrial plans were approved through 2015, 16 more than the 120 projects that got the go-ahead in 2014. The value of commercial and industrial building plans approved, however, is down 31.7% on 2014. The value of commercial and industrial buildings approved in 2015 is N$636.9 million, where as the value in 2014 was shy of the billion dollar mark at N$933.0 million. The lower year to date figure for commercial properties is mostly due to base effects as three large commercial projects were approved by the municipality in February 2014.

In our view, the Namibian construction sector will remain vibrant during 2016, with both private sector and government having aggressive development plans. However, as the construction at the B2Gold mine and the Tschudi copper mine being completed during 2015 and construction of the Husab mine nearly completed, the growth contribution from the construction sector is expected to decline. A major concern is the possibility of water restrictions in Namibia, especially the central region. Water shortages and restrictions in Windhoek will directly affect economic activity in Namibia, impacting water dependent industries, such as construction. If water restrictions are implemented in Namibia, it would have a severe impact on the construction industry as they are heavily reliant on water supply.

A total of 218 building plans valued at N$332.9 million were approved by the City of Windhoek in November 2015, with one project classified as an addition to be built in Rocky Crest, valued at N$180.0 million. On a year to date basis, 2,394 plans were approved with a value of N$2.124 billion, versus 2,710 plans valued at N$2.054 billion for the same period last year. This represents a 3.4% increase in the value of plans approved on a year to date basis, posting growth for the first time in eleven months, largely due to the Rocky Crest property approved in November this year and a commercial property to be built in Lafrenz, valued at N$102.0 million approved in October. The below chart illustrates the value of plans approved on a year to date basis compared to previous years.

The 12-month cumulative value of plans approved increased from N$2.166 billion in October to N$2.369 billion this month, illustrated on the chart below. The figure is 8.3% more than a year ago, turning positive for the first time in eleven months. However, the cumulative number of plans approved continued to fall, down from 2,543 in October to 2,531 in November.

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, since many of these plans occur outside the Windhoek municipal area, they are not captured in the monthly building plan statistics.

A total of 211 building plans valued at N$248.4 million were approved by the City of Windhoek in October 2015, with one commercial property to be built in Lafrenz, valued at N$102.0 million. On a year to date basis, 2,176 plans were approved with a value of N$1.792 billion, versus 2,479 plans valued at N$1.924 billion for the same period last year. This represents a 6.9% decrease in the value of plans approved on a year to date basis. This decrease is mainly due to base effects as three large commercial projects were approved by the municipality in February 2014, however, this rate improved from 16.0% in September, largely due to the Lafrenz property approved in October this year. The below chart illustrates the value of plans approved on a tear to date basis compared to previous years.

The 12-month cumulative value of plans approved increased for the first time in six months, up from N$2.004 billion in September to N$2.166 billion this month, however, the figure is still 3.4% less than a year ago. The cumulative number of plans approved continued to fall, down from 2,553 in September to 2,543 in October. These figures are presented in the charts below.

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, since many of these plans occur outside the Windhoek municipal area, they are not captured in the monthly building plan statistics.