HouseFinder Magazine is a trusted property platform connecting developers, estate agents, businesses and homeowners through an online property portal, targeted digital marketing, inspiring content and the established HouseFinder Magazine.
Continued house price appreciation suggests that housing demand remains resilient, which is likely to sustain elevated housing costs and contribute to sticky inflation within the housing sub-category.
The FNB House Price Index continues to highlight a persistent supply-demand imbalance in Namibia's residential property market. House prices are being driven more by structural supply constraints, including shortages of serviced land, limited housing stock and elevated construction costs.
Regionally, price growth remained strongest in the central and coastal markets, where stronger economic activity and demand from higher-income households and foreign buyers continue to support market performance. Transaction volumes generally moderated across most regions, with the small housing segment recording the largest contraction in activity, while the medium and large segments showed some improvement, indicating that higher-value market segments continue to exhibit greater resilience.
Mortgage credit growth to households showed signs of recovery, rising to 2.1% y/y in June 2026. However, this improvement stems from a relatively low base and does not yet signal a broad recovery in housing demand. Household finances remain under pressure from elevated living costs and affordability challenges, limiting the ability of many potential buyers to take on new mortgage debt. Consequently, residential property activity appears increasingly concentrated among higher-income households and foreign buyers, who typically have stronger balance sheets and greater access to cash funding.
Adding to these pressures, the Bank of Namibia increased the repo rate by 25 basis points in June 2026, a surprise move that is expected to further dampen appetite for long-term credit and weigh on mortgage demand. Structural challenges, particularly delays in land servicing and the limited delivery of serviced plots, continue to constrain housing supply, while broader economic conditions hinder a more inclusive recovery in housing market participation.
Looking ahead, Namibia's residential property market is expected to remain relatively resilient. Persistent shortages of serviced land and limited housing supply should continue to underpin house price growth, particularly in the central and coastal regions.
While affordability constraints may continue to temper activity in the lower-value segment, It is also clear that growing mortgage credit , sustained economic activity and stronger demand in the medium- and upper-value segments provide grounds for cautious optimism.
Over the medium term, accelerated land servicing, increased housing delivery and firmer income growth could help broaden market participation and support a more balanced and inclusive expansion of the housing market.
For more information, please call: 061 – 299 2222 or visit www.fnbnamibia.com.na
KEY HIGHLIGHTS
