Despite a slight slowdown in price growth during the first quarter of 2026, the Namibian housing market remains resilient.

The FNB House Price Index continues to highlight a persistent supply–demand imbalance in the housing market. House prices remain resilient and elevated despite a moderation in buying activity, largely reflecting ongoing constraints in the availability of serviced land. The index rose by 7.1% in 1Q26, while transaction volumes eased by 10.4%. Although buying momentum has begun to slow as is typical in the first quarter of the year, activity remains in double-digit growth territory, underscoring the market’s underlying strength.

From a regional perspective, price growth has been strongest in the central and coastal regions, while momentum has eased in the northern and southern regions. Transaction volumes have similarly slowed in the northern and southern areas, whereas activity in the central and coastal regions remains robust, supported by demand across the small, medium, and large housing segments.

Mortgage credit growth remains lacklustre, rising by 1.9% y/y in March 2026. This slow pace reflects ongoing pressure on household finances, which continues to limit the ability of a broader consumer base to take on new home loans. As a result, buying activity appears to be increasingly concentrated among foreign buyers and higher income households with stronger and more stable cash flows. Although the Bank of Namibia has held the policy rate steady at 6.50% since the final quarter of 2025, interest rate stability alone has not been sufficient to substantially lift mortgage demand. Structural challenges, particularly the delays in land servicing, alongside broader economic constraints, remain key obstacles to broader participation in mortgage credit.

The Namibian residential property market is expected to remain resilient in the near term, with house prices continuing to be supported by a persistent shortage of serviced land despite some moderation in buying activity.

While demand has slowed from earlier highs, price growth is likely to remain firm especially in the central and coastal regions preferred by higher-income and foreign buyers. Weak mortgage credit growth and ongoing pressure on household finances are, however, expected to limit a more broad-based recovery.

As a result, market activity is likely to remain uneven and skewed toward cash-based purchasers. Other buyers remain dependent on improved land servicing, stronger income growth and eased affordability.