Category Archives: Building Plans

A total of 116 building plans valued at N$128.7 million were approved by the City of Windhoek in January 2016. It looks like a good start for 2016 as 43 more plans were approved in January compared to a seasonally slower December, however it is significantly less than the 220 average number of building plans approved in January over the last 10 years.

The 12 month cumulative number of plans approved continued to lose momentum during January, falling to 2,398 compared to 2,467 in December, with the year-on-year growth rate contracting by 14.4%, posting negative growth for the 21st consecutive month. As shown in the graph below, the level of the 12 month cumulative number of plans approved is now more in line with the 2500 20-year average number of plans approved. The period between September 2012 and September 2013 saw a significant increase in number of plans approved as new regulation stipulates all plans of exiting property must be updated with any additions made before the property can be sold, together with a construction boom in flats and houses during that period.

The 12-month cumulative value of plans approved totalled N$2.230 billion, up 0.8% in January compared to a 4.4% decrease in December.

15 residential units were approved by the municipality during January, down 58.3% year on year. Plans for flats and houses approved were valued at N$23.7 million in contrast to the 36 plans worth N$35.3 million in January 2015, down 32.8%.

The City of Windhoek approved 95 additions in January 2016, a decrease of 31.2% from 138 plans approved in January last year, however, from a value perspective, the value of additions approved increased from N$32.6 million in January 2015 to 63.0 million this year.

6 commercial and industrial plans were approved through January, 5 less than the 11 projects that got the go-ahead in January 2015. The value of commercial and industrial building plans approved, however, is up 55.7% on January last year. The value of commercial and industrial buildings approved in January is N$41.9 million, where as the value in 2014 was N$26.9 million.

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 in the central region. NamWater announced yesterday, 18 February 2016, that water supply to Windhoek will be cut by 20% as of 1 March 2016 in an attempt to postpone dams running dry in August this year to April 2017. 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 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.