Category: Construction

Executive summary

• The City of Windhoek approved a total of 202 building plans valued at N$ 100,756,635 in June 2023. See figure 1
• Out of 202 building plans approved, 142 were additions plans, 42 were house plans, 11 were wall plans, 6 were commercial plans, and 1 pool plan
• The number of approved building plans increased by 14% when compared to those approved in May 2023. See Figure 2
• During the month under review, a total number of 49 buildings were completed for Windhoek at the value of N$ 22,365,684
• Total buildings completed increased by 32% when compared to the buildings completed in May 2023

Analysis

• On an annual basis, the number of building plans approved for Windhoek declined by 19%. This could have stemmed from the drop in major construction projects in the economy
• For the month under review, the highest number of building plans approved were from Windhoek suburbs with a total of 37 plans (22 addition plans, 12 house plans, 1 commercial plan, 1 wall plan, and 1 pool plan) valued at N$ 25,034,729
• Khomasdal had the second-highest number of building plans approved with a total of 27 plans valued at N$ 12,212,500
• Klein Windhoek had the third-highest number of building plans approved with a total of 14 plans valued at N$ 10,406,000

Outlook

• We anticipate construction activities to improve from its declining trajectory in the short to medium term. The improvement is anticipated to result from the recovery in SACU revenue and the renewed emphasis on prioritizing capital and infrastructure spending for the financial year 2023/24.

Figure 1: Monthly Building Plans Approved Vs. Buildings Completed, Windhoek (June 2022 – June 2023)

Source: CoW & HEI RESEARCH

 Figure 2: Building Plans Approved Monthly % Growth Rates, Windhoek (June 2022 - June 2023)

Source: CoW & HEI RESEARCH

Executive summary

• The City of Windhoek approved a total of 144 building plans valued at N$ 140,436,252 in April 2023. See figure 1
• Out of 144 building plans approved, 93 were additions plans, 29 were house plans, 12 were wall plans, 9 were commercial plans, and 1 pool plan
• The number of approved building plans declined by 26% when compared to those approved in March 2023. See figure 2
• During the month under review, a total number of 54 buildings were completed for Windhoek at the value of N$ 65,615,744
• Total buildings completed declined by 31% when compared to the buildings completed in March 2023

Analysis

• On an annual basis, the number of building plans approved for Windhoek declined by 23%. This could be attributed to a decline in construction spending as a result of high inflation and interest rates
• For the month under review, the highest number of building plans approved were from Windhoek suburbs with a total of 41 plans (26 addition plans, 6 house plans, 5 commercial plans, 3 wall plans, and 1 pool plan) valued at N$ 33,888,000
• Otjomuise and Katutura had the second-highest number of building plans approved with a total of 12 plans valued at N$ 14,130,003 and N$ 5,024,312, respectively

Outlook

We expect construction activity to maintain modest growth in the short to medium term, owing to rising interest rates, which raises the cost of borrowing for new construction projects.

Figure 1: Monthly Building Plans Approved Vs. Buildings Completed, Windhoek (April 2022 - April 2023)

Source: CoW & HEI RESEARCH

Figure 2: Building Plans Approved Monthly % Growth Rates, Windhoek (April 2022 - April 2023)

Source: CoW & HEI RESEARCH

Executive summary

• The City of Windhoek approved a total of 195 building plans valued at N$ 103,818,571 in March 2023. See figure 1
• Out of 177 building plans approved, 136 were additions plans, 46 were house plans, 11 were wall plans, and 2 were commercial plans
• The number of approved building plans increased by 10% when compared to those approved in February 2023. See Figure 2
• During the month under review, a total number of 78 buildings were completed for Windhoek at the value of N$ 41,986,838
• Total buildings completed increased by 47% when compared to the buildings completed in February 2023

Analysis

• On an annual basis, the number of building plans approved for Windhoek declined by 21%. This could be attributed to a decline in construction spending
• For the month under review, the highest number of building plans approved were from Windhoek suburbs with a total of 38 plans (27 addition plans, 10 house plans, and 1 commercial plan) valued at N$ 22,374,000
• Klein Windhoek had the second-highest number of building plans approved with a total of 18 plans valued at N$ 10,319,200

Figure 1: Monthly Building Plans Approved Vs. Buildings Completed, Windhoek (March 2022- March 2023)

 Figure 2: Building Plans Approved Monthly % Growth Rates, Windhoek (March 2022- March 2023)

Outlook

• We anticipate construction activities to maintain modest growth in the short to medium term

Executive summary

• The City of Windhoek approved a total of 177 building plans valued at N$ 73,208,438 in February 2023. See figure 1
• Out of 177 building plans approved, 127 were additions plans, 37 were house plans, 10 were wall plans, and 3 were commercial plans
• The number of building plans approved increased by 105% when compared to building plans approved in January 2023. See Figure 2
• During the month under review, a total number of 53 buildings were completed for Windhoek at the value of N$ 41,423,636
• Total buildings completed decreased by 20% when compared to the buildings completed in January 2023

Analysis

• On an annual basis, the number of building plans approved for Windhoek declined by 24%. This could be attributed to subdued construction activities influenced by high-interest rates and inflation
• For the month under review, the highest number of building plans approved were from Windhoek suburbs with a total of 31 plans (24 addition plans, 6 house plans, 1 commercial plan) valued at N$ 23,098,300
• Klein Windhoek had the second-highest number of building plans approved with a total of 21 plans valued at N$ 13,609,752

Figure 1: Monthly Building Plans Approved Vs. Buildings Completed, Windhoek (February 2022- February 2023)

Figure 2: Building Plans Approved Monthly % Growth Rates, Windhoek (February 2022- February 2023)

Outlook

• The construction sector picked up momentum for the month of February 2023 compared to December 2022 and January 2023. The construction activity for the country looks moderately promising going forward into 2023 as it pins hope on green hydrogen projects
• We anticipate modest growth in construction activities in the short to medium term

Executive summary

• The City of Windhoek approved a total of 86 building plans valued at N$ 23,095,218 in January 2023. See figure 1
• Out of 86 building plans approved, 56 were additions plans, 20 were house plans, 6 were wall plans, and 3 were commercial plans
• The number of building plans approved declined by 29% when compared to building plans approved in December 2022. See Figure 2
• During the month under review, a total number of 67 buildings were completed for Windhoek at the value of N$ 35,273,896
• Total buildings completed decreased by 17% when compared to the buildings completed in December 2022 

Analysis

• On an annual basis, the number of building plans approved for Windhoek declined by 54%
• For the month under review, the highest number of building plans approved were from Windhoek suburbs with a total of 21 plans (13 addition plans, 4 house plans, 2 commercial plans) valued at N$ 13,622,500
• Klein Windhoek had the second-highest number of building plans approved with a total of 9 plans valued at N$ 922,000

Figure 1: Monthly Building Plans Approved Vs. Buildings Completed, Windhoek (January 2022- January 2023)

Figure 2: Building Plans Approved Monthly % Growth Rates, Windhoek (January 2022- January 2023)

Outlook

• We expect an uptick in the construction sector for 2023. This is supported by the allocations made towards the sector as per the budget statement for FY2023/24. Construction activities include; three new Vocational Training Centres (VTCs) which are under construction in Keetmanshoop, Khorixas, and Nkurenkuru, work has commenced towards the construction of the second Direct Portable Water Reclamation Plant (DPR II), and the upgrading of the Gammams and Otjomuise sewage systems.  Moreover, more than N$570 million has been availed in the development budget to cater for the construction and renovation of classrooms as well as other education infrastructures such as hostels and offices

Executive summary

• The City of Windhoek approved a total of 121 building plans valued at N$ 49,231,600 in December 2022. See figure 1
• Out of 121 building plans approved, 83 were additions plans, 24 were house plans, 11 were wall plans, and 3 were commercial plans
• The number of building plans approved declined by 41% in relation to the previous month. See Figure 2
• During the month under review, a total number of 81 buildings were completed for Windhoek at the value of N$ 39,637,754
• Total buildings completed declined by 9% when compared to the buildings completed in November 2022 

Analysis

• On an annual basis, the number of building plans approved for Windhoek increased by 15%
• For the month under review, the highest number of building plans approved were from Windhoek suburbs with a total of 33 plans (19 addition plans, 8 house plans, 2 commercial plans, and 4 wall plans) valued at N$ 22,055,000
• Katutura had the second-highest number of building plans approved with a total of 11 plans valued at N$ 537,000

Figure 1: Monthly Building Plans Approved Vs. Buildings Completed, Windhoek (December 2021- December 2022)

Figure 2: Building Plans Approved Monthly % Growth Rates, Windhoek (December 2021- December 2022)

Outlook

• The number of building plans approved for Windhoek continues on a downward trend as such we anticipate the construction industry to remain subdued for the first months of 2023

Executive summary

• The City of Windhoek approved a total of 204 building plans valued at N$ 134,924,618 in November 2022. See figure 1
• Out of 204 building plans approved, 148 were additions plans, 38 were house plans, 13 were wall plans, and 5 were commercial plans
• The number of building plans approved declined by 27% in relation to the previous month. See Figure 2
• During the month under review, a total number of 89 buildings were completed for Windhoek at the value of N$ 52,651,886
• The total buildings completed increased by 36% when compared to the buildings completed in October 2022 

Analysis

• On an annual basis, the number of building plans approved for Windhoek declined by 22%
• For the month under review, the highest number of building plans approved were from Windhoek suburbs with a total of 34 plans (25 addition plans, 6 house plans, 3 commercial plans) valued at N$ 28,728,200
• Katutura had the second-highest number of building plans approved with a total of 23 plans valued at N$ 4,339,906

Outlook

• The decline in the number of building plans approved for Windhoek could be ascribed to low consumer confidence to uptake credit for construction activities due to high-interest rates
• We anticipate the construction industry to remain subdued for December 2022 due to the closure of the majority of construction companies for the holiday.

Figure 1: Monthly Building Plans Approved Vs. Buildings Completed, Windhoek (November 2021- November 2022)

                                                                                                                                                                                                                       Figure 2: Building Plans Approved Monthly % Growth Rates, Windhoek (November 2021- November 2022)

Executive summary

• The City of Windhoek approved a total of 280 building plans valued at N$ 158,211,436 in October 2022. See figure 1
• Out of 280 building plans approved, 182 were additions plans, 67 were house plans, 16 were wall plans, 13 were commercial plans, and 2 were pool plans
• The number of building plans approved increased by 6% in relation to the previous month. See Figure 2
• During the month under review, a total number of 88 buildings were completed for Windhoek at the value of N$ 75,847,232

Analysis

• On an annual basis, the number of building plans approved for Windhoek declined by 3%
• For the month under review, the highest number of building plans approved were from Windhoek suburb with a total of 57 plans (39 addition plans, 9 house plans, 7 commercial plans, 2 wall plans) valued at N$ 52,577,750
• Katutura had the second-highest number of building plans approved with a total of 43 plans valued at N$ 12,063,216

Figure 1: Monthly Building Plans Approved Vs. Buildings Completed, Windhoek (October 2021- October 2022)

                                                                                                                                                                                                                       

Figure 2: Building Plans Approved Monthly % Growth Rates, Windhoek (October 2021- October 2022)

Outlook

• We anticipate modest growth for Windhoek’s construction sector for November 2022. This will be driven by the urgency to complete construction work before the holiday season.

Executive summary

• The City of Windhoek approved a total of 264 building plans valued at N$ 150,821,972 in September 2022. See figure 1
• Out of 264 building plans approved, 169 were additions plans, 62 were house plans, 21 were wall plans, 6 were commercial plans, and 6 were pool plans
• The number of building plans approved increased by 8% in relation to the previous month. See Figure 2
• During the month under review, a total number of 88 buildings were completed for Windhoek at the value of N$ 107,571,936
• The total buildings completed increased by 3.5% when compared to the buildings completed in August 2022 

Analysis

• On an annual basis, the number of building plans approved for Windhoek increased by 79.6%
• Total building plans approved and completed increased for September 2022 amidst rising interest rates and commodity prices
• For the month under review, the highest number of building plans approved were from Windhoek suburbs with a total of 59 plans (32 addition plans, 18 house plans, 4 commercial plans, 4 wall plans, and 1 pool plan) valued at N$ 43,819,137
• Klein Windhoek had the second-highest number of building plans approved with a total of 29 plans valued at N$  8,685,000

Figure 1: Monthly Building Plans Approved Vs. Buildings Completed, Windhoek (September 2021- September 2022)

Figure 2: Building Plans Approved Monthly % Growth Rates, Windhoek (September 2021- September 2022)

Outlook

• The poor economic performance of the construction sector reflected in the second quarter of 2022 indicates that construction activities are under pressure. This can be attributed to a decrease in real government expenditure for the sector  
• We project the construction sector to remain under pressure in the short to medium term.

Executive summary

• The City of Windhoek approved a total of 244 building plans valued at N$ 179,165,469 in August 2022. See figure 1
• Out of 244 building plans approved, 169 were additions plans, 55 were house plans, 10 wall plans, 8 commercial plans, and 2 pool plans
• The number of building plans approved declined by 22% in relation to the previous month. See Figure 2
• During the month under review, a total number of 85 buildings were completed for Windhoek at the value of N$ 41,342,482
• Total buildings completed declined by 3.4% when compared to the buildings completed in July 2022 

Analysis

• On an annual basis, the number of building plans approved for Windhoek declined by 10.9%
• Total building plans approved and completed declines for August 2022 could be ascribed to an increase in operational costs
• For the month under review, the highest number of building plans approved were from Windhoek suburbs with a total of 45 plans (22 addition plans, 20 house plans, and 3 commercial plans), valued at N$ 25,582,040
• Okuryangava suburb had the second highest number of building plans approved with a total of 22 plans valued at N$ 2,712,242

Outlook

• Over the last 3 months, there was a slight uptick in the number of building plans approved for Windhoek. This was mainly driven by additions displaying signs of improved activities and consumer confidence. Positive performance in corporate and household mortgages might also suggest that we might see an uptick in additions or new houses and commercial properties for 2022. However, the decline in building plans approved between August and July 2022 could be a result of an increase in construction costs and an increase in interest rates. We anticipate modest growth in construction activities in the short to medium term.

Figure 1: Monthly Building Plans Approved Vs. Buildings Completed, Windhoek (August 2021- August 2022)

Figure 2: Building Plans Approved Monthly % Growth Rates, Windhoek (August 2021- August 2022)