By Monika Kristof
Executive summary
- The City of Windhoek approved a total of 128 building plans for June 2021 , down from 193 building plans approved in May 2021. See figure 1
- The decline in the number of building plans approved for June 2021 was mainly driven by additions and house plans.
- Addition plans declined to 65 from 105 that was recorded for May 2021
- House plans declined to 51 from 78 plans that were recorded for May 2021.
- On a cumulative basis the City of Windhoek approved a total of 65 addition plans, 51 house plans, 8 wall plans , 3 commercial plans and 1 pool plan, valued at N$ 129 171 723 for June 2021
Analysis
- On an annual basis the number of building plans approved for Windhoek experienced a robust growth from (-19.70%) to ( 44.46%), this was due to an increase in addition and house plans. See figure 2
- The highest number of building plans approved for June 2021, were from Windhoek and Khomasdal suburb, recording 24 plans each at the value of N$ 46 218 350
- Otjomuise, recorded the second highest number of building plans approved for June 2021, with a total of 11 plans (5 addition plans, 6 house plans), valued at N$ 9,632,281
Outlook
- We project ,the approval of building plans, which is a leading indicator of Windhoek’s construction sector, to remain under pressure for July 2021 , due to delays in several public and private sector projects owing to uncertainty around the COVID-19 pandemic that resulted in raw materials shortages due to supply chain disruptions
- Similarly, weak private sector investment in construction activities due to low credit appetite as a result of the uncertainty around future income will likely persist until the economy shows prospects of recovery
Figure1: Monthly Building Plans Approved, Windhoek
Figure 2: Building Plans Approved Annual growth rates, Windhoek
