Category: Construction

Executive summary

• The City of Windhoek approved a total of 314 building plans valued at N$ 496,124,632 in July 2022. See figure 1
• Out of 314 building plans approved, 179 were additions plans, 112 were house plans, 16 wall plans, 5 commercial plans, and 2 pool plans
• The number of building plans approved declined by 26% 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$ 51,692,910  
• Total buildings completed declined by 18% when compared to the buildings completed in June 2022. 

Analysis

• On an annual basis, the number of building plans approved for Windhoek increased by 41%
• Total building plans approved were mainly driven by additions and house plans between July 2021 and July 2022
• For the month under review, the highest number of building plans approved were from Windhoek suburbs with a total of 54 plans (25 addition plans, 25 house plans, 2 wall plans, and 1 commercial plan), valued at N$ N$ 45,929,422
• Goreagab suburb had the second highest number of building plans approved with a total of 47 plans valued at N$ N$ 45,579,200

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

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

Outlook

• The nominal value of the building plans approved during July 2022 increased to N$ 496 million when compared to N$ 399 million recorded in June 2022. The construction sector continues to show signs of improved activities amidst rising building material costs, rising interest rates, and rising fuel costs. We anticipate continued improvements in the construction environment in the short to medium term.

Executive summary

• The City of Windhoek approved a total of 249 building plans valued at N$ 399, 510, 320 in June 2022. See figure 1
• Out of 249 building plans approved, 153 were additions plans, 69 were house plans, 20 wall plans, 5 commercial plans, and 2 pool plans
• The number of building plans approved increased by 62% in relation to the previous month. See Figure 2
• A total of 1256 building plans were received during the first half of 2022
• During the month under review, a total number of 74 buildings were completed for Windhoek at the value of N$ 43, 881, 404
• Total buildings completed increased by 64% when compared to the buildings completed in May 2022. 
• Total buildings completed for Windhoek were driven by houses followed by additions

Analysis

• On an annual basis, the number of building plans approved for Windhoek increased by 95%
• Total building plans approved were mainly driven by additions and house plans between June 2021 and June 2022
• For the month under review, the City of Windhoek indicated that the highest number of building plans approved were from Windhoek suburbs with a total of 44 plans (30 addition plans, 8 house plans,4 wall plans, and 2 commercial plans), valued at N$ 319, 649, 906
• Katutura suburb and Okuryangava had the second highest number of building plans approved with a total of 23 plans each at a cumulative value of N$  14, 209, 778

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

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

Outlook

The nominal value of the building plans approved during June 2022 increased substantially to N$ 399 million compared to N$ 118 million recorded in May 2022. The performance of Namibia's construction sector shows signs of improvement this is an indication of an uptick in construction activities amid elevated prices (building materials costs). The improvement can be attributed to the continuous NHE Informal Settlement Upgrading Affordable Housing Pilot Project. We project for further improvements in the construction environment for Windhoek in the short to medium term.

Executive summary

• The City of Windhoek approved a total of 153 building plans in May 2022
• Out of 153 building plans approved, a total number of 45 buildings were completed during the month under review
• Total buildings completed were driven by houses and additions
• The number of building plans approved and buildings completed declined by 18% and 47% respectively. See Figure 1
• During the month under review, the City of Windhoek approved a total of 114 addition plans, 30 house plans, 5 wall plans, and 2 commercial plans
• Additions plans were the main drivers of the building plans approved for May 2022
• Total building plans approved were valued at N$ 118,285,226 and total buildings completed were valued at N$ 56,231,060 for May 2022

Analysis

• On an annual basis, the number of building plans approved for Windhoek declined to 2.2% from 33.77% recorded during the same period last year. (See figure 2).
• The decline in the number of building plans approved and completed in May 2022 by the City of Windhoek could be ascribed to high building operational costs
• The City of Windhoek indicated that the highest number of building plans approved for May 2022, was from Windhoek suburb, with a total of 30 plans (22 addition plans, 5 house plans, 1 pool plan, and 2 commercial plans), valued at N$ 25,370,000
• Klein Windhoek had the second-highest number of building plans approved with a total of 18 plans (1 pool plan), valued at N$  8,950,000 for the month under review

Figure1: Monthly Building Plans Approved Vs. Buildings Completed, Windhoek

Figure 2: Building Plans Approved Annual Growth Rates, Windhoek

Outlook

• We project the construction sector to remain subdued for June 2022 owing to an increase in building operational expenses resulting from high energy prices due to global economic challenges.

Executive summary

• The City of Windhoek approved a total of 188 building plans for April 2022
• Out of 188 building plans approved, a total number of 86 buildings were completed during the month under review
• Total buildings completed were driven by houses and additions
• The number of building plans approved and buildings completed declined by 24% and 33% respectively. See Figure 1
• During the month under review, the City of Windhoek approved a total of 114 addition plans, 58 house plans,15 wall plans, and 1 commercial plan
• Additions plans were the main drivers of the building plans approved for April 2022
• Total building plans approved were valued at N$ 107, 556, 928 and total buildings completed were valued at N$ 43,426,778 for April 2022

Analysis

• On an annual basis, the number of building plans approved for Windhoek declined to 5.1% from 21.95% recorded during the same period last year. (See figure 2).
• The decline in the number of building plans approved and completed for April 2022 by the City of Windhoek could have been influenced by delays in the building projects due to the high costs of most of the building materials
• The City of Windhoek indicated that the highest number of building plans approved for April 2022 was from Windhoek suburb with a total of 33 plans (19 addition plans, 11 house plans,2 wall plans, and 1 commercial plan) valued at N$ 52,678,500
• Katutura suburb had the second-highest number of building plans approved with a total of 19 plans (16 additions, 2 house plans, and 1 wall plan) valued at N$  1,885,812 for the month under review

Outlook

• Windhoek’s construction sector faces strong headwinds as consumers and businesses are under pressure due to  rising building material costs, rising interest rates, and rising fuel and food prices which increases the operational costs for contractors
• We project a subdued construction environment in the medium term

Figure1: Monthly Building Plans Approved Vs. Buildings Completed, Windhoek

Source: COW & HEI RESEARCH

Figure 2: Building Plans Approved Annual growth rates, Windhoek

Executive summary

• The City of Windhoek approved a total of 290 building plans valued at N$ 221 287 275 for November 2021. The number of building plans approved remained the same in relation to the previous month. See figure 1
• The highest number of building plans approved were additions plans followed by house plans and the least building plans were the commercial and pool plans  
• On a monthly basis addition plans declined to 185 from 200 recorded for October 2021
• Wall plans increased to 23 from 17 recorded for October 2021 
• On a 12 months cumulative basis, the City of Windhoek approved  a total of 2849 building plans from November 2020 to November 2021

Analysis

• The highest number of building plans approved for November 2021, came from Windhoek suburb, with 48 plans (30 additions, 15 house plans, and 3 wall plans) valued at N$ 84 073 300
• Khomasdal recorded the second highest number of building plans approved for November 2021, with a total of 41 plans (27 addition plans and 7 wall plans , 6 house plans and 1 commercial ) valued at N$  39 548 372
• On an annual basis, the number of building plans approved for Windhoek declined to (6.89%) from (25.60%), this could be attributed to a low consumer confidence to uptake credit for construction activities. See figure 2

Outlook

• Windhoek’s construction sector continues to face strong headwinds as a result of the continuous negative impact of the Covid-19 pandemic on consumers and businesses confidence
• We anticipate a subdued construction environment for December 2021 due to a mute in most construction activities for the holiday season

Figure1: Monthly Building Plans Approved, Windhoek

Figure 2: Building Plans Approved Annual Growth Rates, Windhoek (November 2020- November 2021)

Executive summary

• The City of Windhoek approved a total of 290 building plans valued at N$ 191 366 961 for October 2021. The number of building plans approved increased by 17% when compared to the previous month. See figure 1
• An increase in the number of building plans approved for October 2021 was mainly driven by additions, house and wall plans
• Addition plans increased to 200 for October 2021 from 143 recorded for September 2021
• House plans declined to 69 for October 2021 from 81 recorded for September 2021 
• Wall plans increased to 17 for October 2021 from 14 that were recorded for September 2021
• On a 12 months cumulative basis, the City of Windhoek approved  a total of 2 995 building plans from October 2020 to October 2021

Analysis

• The highest number of building plans approved for October 2021, came from Windhoek suburb, with 50 plans (39 additions, 7 house plans, and 3 wall plans) valued at N$  32 085 000
• Khomasdal recorded the second highest number of building plans approved for October 2021, with a total of 34 plans (27 addition plans and  7 house plans) valued at N$ 14 888 000
• On an annual basis, the number of building plans approved for Windhoek declined to (8.23%) from (21.28%), this could be attributed to a low consumer and business confidence to uptake credit for construction activities. See figure 2

Outlook

• We anticipate a moderate growth for Windhoek’s construction sector for November 2021 before the construction holiday commence. This is driven by the rush to the year end.

Figure1: Monthly Building Plans Approved, Windhoek

Figure 2: Building Plans Approved Annual Growth Rates, Windhoek (October 2020-October 2021)

By Turimuye Uandara

Executive summary

• The City of Windhoek approved a total of 247 building plans valued at N$ 162 211 756 for September 2021. The number of building plans approved declined by 9.9% when compared to the previous month. See figure 1
• A decline in the number of building plans approved for September 2021 was driven by additions, house and wall plans
• Addition plans decreased to 143 for September 2021 from 165 recorded for August 2021
• House plans decreased to 81 for September 2021 from 83 recorded for August 2021 
• Wall plans decreased to 14 for September 2021 from 19 that were recorded for August 2021
• On a 12 months cumulative basis, the City of Windhoek approved  a total of 2 959 building plans from September 2020 to September 2021

Analysis

• The highest number of building plans approved for September 2021, came from Khomasdal, with 40 plans (18 additions, 18 house plans, and 4 wall plans) valued at N$ 31 966 800
• Windhoek suburb, recorded the second highest number of building plans approved for September 2021, with a total of 33 plans (18 addition plans, 9 house plans, 3 commercial, 1 pool plan, and  2 wall plan) valued at N$ 31 965 000
• On an annual basis, the number of building plans approved for Windhoek experienced a growth of (26.12%) from (12.95%) that was recorded for the same period last year due to the rebound after the Covid-19 restrictions were lifted. See figure 2

Outlook

• We anticipate for a moderate recovery for Windhoek’s Construction sector in the short to medium term.

Figure1: Monthly Building Plans Approved, Windhoek

Figure 2: Building Plans Approved Annual Growth Rates, Windhoek

By Monika Kristof

Executive summary

• The City of Windhoek approved a total of 193 building plans for May 2021, down from 268  building plans  approved in April 2021. See figure 1
• The decline in the number of building plans approved for May 2021 was driven by additions and wall plans.
• The City of Windhoek approved  a total of 105 addition plans,78 house plans,6 wall plans and 4 commercial plans, valued at  N$ 173 225 878  for May  2021.
• Addition plans  makes up the largest contribution to the Windhoek’s construction sector with a contribution of about 57.1% during the first five months of 2021.

Analysis

• On an annual basis the number of building plans approved for Windhoek experienced a robust  growth from (-13.29) to ( 33.27%),this was driven by additions and house plans. See figure 2
• The highest number of building plans approved for May 2021, were from Khomasdal  suburb, with a total of 26  plans ( 13 addition plans, 11 house and 2 wall plans, valued at N$ 17 394 000.
• Goreangab suburb recorded the  second highest  number of building plans approved for May 2021 recording a total of 25 plans (22 house plans and 3 addition plans valued at N$ 22 846 906.

Outlook

•  We project  for an upward trend for Windhoek  construction sector and  driven  by additions for June  2021.

Figure1: Monthly Building Plans Approved, Windhoek

Figure 2: Building Plans Approved Annual growth rates, Windhoek

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

Executive summary

• The City of Windhoek approved 268 building plans for April 2021 , up from 247  building plans  approved in March 2021. See figure 1
• On a cumulative basis the City of Windhoek approved  a total of 166 addition plans ,80 house plans,13 wall plans ,4 commercial plans  and 5 pool plans ,valued at N$  N$ 235 147 991 for April 2021
• An increase in monthly building plans approved  for April  2021 was driven by addition plans

Analysis

• On an annual basis the number of building plans approved for Windhoek experienced a robust  growth from (1.76%) to ( 21.95%),this was driven by addition and house plans. See figure 2
• The highest number of building plans approved for April  2021 , were from Khomasdal  suburb, with a total of 54 plans ( 34 addition plans, 15 house,3 wall plans,2 commercial plans valued at N$  39 128 000
• Windhoek suburb, had the second highest number of building plans approved for April 2021, with a total of 45 plans (26 addition plans,14 house plans,3 pool plans,1 commercial and 1 wall plan), valued at N$  97 846 600
• Prosperita ,Lafrenz and Hakahana suburb, had the least number of building plans approved for April 2021

Outlook

• We project  for an upward trend for Windhoek  construction sector for the second quarter of 2021

Figure1: Monthly Building Plans Approved, Windhoek

Figure 2: Building Plans Approved Annual growth rates, Windhoek