Category Archives: Building Plans

191 building plans were approved by the City of Windhoek in November, representing a 27.1% m/m decline from the 262 building plans approved in October. In value terms, the approvals were valued at N$134.6 million, down 38% m/m from the N$157.3 million worth of plans approved in October. Year-to-date, 2,357 building plans worth N$1.71 billion have been approved, up 0.2% y/y in number terms but falling by 7.6% y/y in value terms compared to the same period last year. On a twelve-month cumulative basis, the number of approvals fell by 0.5% y/y to 2,455 and in value terms declined by 5.2% y/y to N$1.82 billion. 84 building plans worth N$42.7 million were completed in November.

148 additions to properties were approved in November valued at N$80.9 million, 34 fewer than the 182 units worth N$84.6 million approved last month. Year-to-date, 1,592 additions to properties worth N$865.8 million were approved, representing a 5.4% y/y increase in number terms and a 20.8% y/y jump in value terms. On a 12-month cumulative basis, 1,655 additions to the value of N$902.2 million were approved in November, 60 more than over the same period last year, and a 21.9% y/y increase in value terms. A total of 36 additions worth N$16.4 million were completed in November, up from the 36 additions worth N$9.94 million completed in October.

38 New residential units were approved in November, notably down from the 67 approved in October and the monthly average of 65 for the year. In value terms, N$48.5 million worth of residential units were approved during the month, representing a 23.2% m/m drop from the N$63.18 million approved in October and 54.0% less than a year ago. Year to date, 711 residential units valued at N$680.4 million were approved, representing a 12.0% y/y decline in number terms and a 29.8% y/y contraction in value terms. November saw 743 residential units approved over the last twelve months, an 11.3% y/y decline from the 838 units approved over the same period a year ago. In value terms, N$749.4 million worth of residential units were approved over the past 12 months, representing a 24.6% y/y decrease. 42 New residential units worth N$18.63 million were completed during November, down from the 52 residential units worth N$62.92 million completed in October.

5 New commercial and industrial units valued at N$5.18 million were approved in November, down from the 13 commercial units worth N$9.55 million approved last month. Year-to-date, 54 commercial and industrial buildings valued at N$158.9 million were approved, compared to the 34 commercial buildings worth N$160.3 million over the same period last year. This represents a 58.8% y/y increase in number but a 0.9% y/y contraction in value. On a rolling 12-month perspective, 57 commercial and industrial buildings valued at N$169.9 million were approved in November, compared to the 35 buildings approved worth N$186.5 million over the corresponding period a year ago. This represents an increase of 62.9% y/y in the number of units approved but an 8.9% y/y contraction in value. 6 Commercial and industrial units worth N$7.65 million were completed in November, the highest number of commercial and industrial units since May 2019 after only 2 units worth N$2.98 million were completed last month.

November saw the 12-month cumulative value of building plans approved continue to fall in both nominal and inflation-adjusted terms, as shown in the figure above. The 12-month cumulative value of both commercial and residential units approved dropped in November with the latter contracting for the 8^th consecutive month on an annual basis.

The 12-month cumulative value of completed plans also dipped in both nominal and real terms, as displayed below. The cumulative number of building plans completed declined for the 19^th consecutive month (year-on-year) to 1,004 in November.

The demand for the construction of new buildings hit a new low in November with the year-to-date value of building plans approved as the lowest value reported over the past decade. As observed last month, 2022 is on course to close out with the lowest annual building plan approval value over the past 10 years. We do not see support for a turnaround in construction demand in the short term. Instead, lacklustre construction activity is likely due to high inflation and ever-rising borrowing costs, conditions which are unfavourable to ignite demand for construction.

The City of Windhoek approved a total of 262 building plans in October, representing a 10.5% m/m increase from the 237 building plans approved in September. In value terms, the approvals were valued at N$157.4 million, rising 5.3% m/m from the N$149.4 million worth of plans approved in September. Year-to-date, 2,166 building plans worth N$1.57 billion have been approved, up 3.6% y/y in number terms but down 3.6% y/y in value terms than at the same time last year. On a twelve-month cumulative basis, the number of approvals climbed by 2.1% y/y to 2,527 but in value terms declined by 1.9% y/y to N$1.90 billion. A total of 88 building plans worth N$75.8 million were completed in October.

October saw 182 additions to properties approved valued at N$84.6 million, up 7.7% m/m in number terms and 46.6% m/m higher in value terms. Year-to-date 1,444 additions to properties worth N$784.8 million received the nod, representing an 8.9% y/y increase in number terms and a 29.0% y/y increase in value terms. On a 12-month cumulative basis, 1,692 additions to the value of N$929.3 million were approved in October which represents a 7.4% y/y increase in number terms and a 27.7% y/y jump in value terms. 34 Additions worth N$9.94 million were completed in October, notably down from the 52 additions worth N$17.78 million completed in September.

67 New residential units were approved in October, slightly up from the 62 approved in September. In value terms, N$63.2 million worth of residential units were approved during the month, representing a 30.0% m/m rise from the N$48.6 million approved in September but 22.4% lower than a year prior. Year to date, 673 residential units valued at N$631.9 million were approved, representing an 8.2% y/y decline in number terms and a 26.8% y/y contraction in value terms. October saw 780 residential units approved over the last twelve months, registering a 10.0% y/y decline from the 867 units approved a year ago. In value terms, N$806.4 million worth of residential units were approved over the past 12 months, representing a 21.0% y/y decrease. 52 New residential units worth N$62.92 million were completed during October, up 85.1% m/m from the N$33.99 million worth of plans completed in September.

13 New commercial and industrial units valued at N$9.55 million were approved in October. While the number of approvals reached double digits for the first time since February 2020, the value of the approvals was tepid and came in below the monthly average reported for the year thus far. Year-to-date, 49 commercial and industrial buildings valued at N$153.7 million were approved, compared to the 31 commercial buildings worth N$156.8 million over the same period last year. This represents a 58.1% y/y increase in number but a 2.0% y/y drop in value. On a rolling 12-month perspective, 55 commercial and industrial buildings valued at N$168.3 million were approved in October, compared to the 34 approved buildings worth N$193.0 million over the corresponding period a year ago. This represents an increase of 61.8% y/y in number but a 12.8% y/y contraction in value. Only 2 commercial and industrial units worth N$2.98 million were completed in October, a sizable drop from the N$55.7 million worth completed last month.

The 12-month cumulative value of building plans approved dipped slightly in both nominal and inflation-adjusted terms, as shown in the figure above. This was largely led by the 12-month cumulative y/y decline in the value of commercial and industrial approvals as well as residential units approved. The 12-month cumulative value (and number) of residential units approved also contracted for the 7^th consecutive month on a year-on-year basis. The cumulative number of building plans approved also dipped slightly in October.

The 12-month cumulative value of plans completed picked up slightly in both nominal and real terms, as displayed below. The cumulative number of building plans completed declined for the 18^th consecutive month (year-over-year) to 1,059 in October.

Overall, appetite for new construction remains mute evident from the fact that October recorded the second lowest year-to-date building plan approvals in value terms over the past 10 years, and only marginally higher than the lows of 2020. With high inflation and rising borrowing costs continuing to put pressure on the demand for building construction, 2022 is on course to end with the lowest annual building plan approvals value over the past decade.

A total of 237 building plans were approved by the City of Windhoek in September, representing a 2.2% m/m increase from the 232 building plans approved in August. In value terms, the approvals were valued at N$149.4 million, a 34.0% m/m decline from the N$226.3 million approved in August. Year-to-date, 1,904 building plans worth N$1.41 billion have been approved, 4.7% y/y higher in number terms and 0.4% higher in value terms than at the same time last year. On a twelve-month cumulative basis, the number of approvals climbed by 1.0% y/y to 2,536 but in value terms declined by 3.8% y/y to N$1.96 billion. 86 building plans worth N$107.5 million were completed in September.  

Additions to properties once again made up the largest portion of approvals in both number and value terms. In September, 169 additions to properties were approved valued at N$57.7 million, the same number as last month, but 60.9% m/m lower in value terms. The month-on-month drop in the value of additions was somewhat expected given that last month’s data contained N$100 million worth of additions to the Lady Pohamba Hospital, which was an outlier. Year-to-date 1,262 additions to properties have been approved worth N$700.2 million, representing a 12.1% y/y jump in number terms and a 32.1% y/y increase in value terms. September saw 52 additions worth N$17.8 million completed, slightly down from the previous month.

New residential units were the second largest contributor to the number and value of building plans approved. 62 new residential units were approved in September compared to the 55 recorded in August. In value terms N$48.6 million worth of residential units were approved during the month, representing a 19.0% m/m rise from the N$40.9 million approved in August but declining by 44.1% on a y/y basis. Year to date, 606 residential units valued at N$568.7 million were approved, representing an 8.7% y/y drop in number terms and a 27.3% y/y decline in value terms. The twelve-month cumulative number and value of residential units approved fell for a 6^th consecutive month on a year-on-year basis in September. 782 residential units were approved in the last twelve months to September, a 14.3% y/y decline from the 913 units approved in September last year. In value terms, N$824.7 million worth of residential units were approved over the past 12 months, representing a 30.2% y/y drop. 29 New residential units worth N$33.99 million were completed during September, up 78.9% m/m from the N$19.0 million completed in August.

Approvals of commercial and industrial units remained in the single-digit territory as has been the case since February 2020. 6 new commercial and industrial units valued at N$43.1 million were approved in September, the highest value recorded since October last year. Year-to-date, 36 commercial and industrial buildings valued at N$144.2 million were approved up until the end of Q3, compared to the 29 commercial buildings worth N$94.8 million at the end of Q3 2021. This represents a 24.1% y/y jump in number terms and a 52.0% y/y rise in value terms. On a rolling 12-month perspective, 44 commercial and industrial buildings valued at N$220.7 million were approved in September, compared to the 37 approved buildings worth N$149.0 million over the corresponding period a year ago. 5 commercial and industrial units worth N$55.7 million were completed in September, the highest value recorded this year.

The twelve-month cumulative value of both building plans approved and completed fell in nominal, as well as inflation-adjusted, terms in September as reflected in the graphs above and below.

On a 12-month cumulative basis, 2,536 building plans worth N$1.97 billion were approved, representing a 1.0% y/y increase in number terms but a 3.8% y/y drop in value terms. Additions to properties which made up over two-thirds of this number of approvals rose by 9.9% y/y to 1,710, and is trending at levels last seen in late 2018. Encouragingly, the 12-month cumulative number of commercial and industrial building plan approvals have steadily been ticking up over the last couple of months, and has reached the levels last seen in October 2020. The cumulative number of residential unit approvals fell by 14.3% y/y but at 782 remains well above historical levels. The 20-year average 12-month number of plan approvals remained steady at 2,451 in September.

Completed building plans once again saw strong growth in 12-month cumulative value growing by 26.9% y/y to N$971.2 million in September but falling by 23.4% y/y in number terms to 1,057, the lowest 12-month cumulative figure recorded since March 2018.