Mixed signals amid strong growth potential

Namibia’s property market entered Quarter 1 of 2025 with improving macroeconomic conditions, ongoing housing shortages and infrastructure constraints.

The Ongos Valley development, valued at N$900 million, has already created over 14 000 jobs and is expected to deliver 4 500 homes in Phase 1, according to the Ongos spokesperson Abed Erastus. Meanwhile, the City of Windhoek has paused the Cimbebasia low-cost housing project to implement flood mitigation measures, says City spokesperson Lydia Amutenya.

With Windhoek’s population projected to hit 500 000 this year, and informal settlements expanding at 6% annually, the city estimates that N$7.8 billion is needed to service land and address the growing demand for affordable housing.

The City of Windhoek approved 1 941 building plans valued at N$2.22 billion over the 12 months ending March 2025, reflecting a 4.6% increase in plan numbers and a 21.3% rise in value. Upcoming projects, such as the N$750 million NUST Kleine Kuppe campus and Oryx Properties’ Goreangab and Maerua Mall upgrades, are expected to drive further momentum. Such anticipated growth underscores the CIF’s renewed call for a national construction council to ensure local businesses are supported and prioritized amid this infrastructure boom.

To cushion consumers from an 8% electricity tariff hike, government disbursed N$89.2 million in subsidies, while 95% of prepaid meters were updated in the ECB’s Token Identifier roll-over campaign. The national electrification target has been extended to 2040, aiming to reach 432 000 households with a mix of grid and off-grid solutions.

The Brief publication’s monthly hardware basket survey confirmed Pupkewitz Megabuild as the most affordable retailer for the third consecutive month in 2025, offering price relief to builders and homeowners.

MTC has also expanded its fibre network to 2 738 km, enhancing broadband reliability across Windhoek and coastal areas in response to rising demand.

Parliament has proposed a Ministry of Land Delivery and Housing Provision to address delays and inefficiencies in affordable housing delivery. At the same time, the launch of the Namibian Council for Property Valuers Profession is expected to professionalise property valuations and prevent price manipulation.

The National Housing Enterprise (NHE) saw a 35% revenue surge to N$229 million, with housing unit sales doubling from 223 to 445. Despite the growth, NHE continues to face land access challenges that could hinder future delivery.

Namibia’s improved fiscal health and forecasted 4.5% GDP growth in 2025 are boosting buyers’ confidence. Windhoek’s ranking as the 9th most affordable city for expats, according to Mercer, further enhances its appeal. In response to rising demand, the Namibia Tourism Board has cracked down on unregistered Airbnb operators, enforcing registration laws to ensure quality and regulatory compliance in the growing short-term rental market.

External risks to the property sector are evident for Q2. Donald Trump’s tariffs may affect regional trade, potentially increasing construction material costs.
As a small economy closely tied to SA, Namibia must remain vigilant, with investor sentiment, affordability, and housing delivery hanging in the balance.

The information presented in this article is intended for informational purposes only and should not be construed as definitive market analysis or financial advice.

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