N$124m building projects completed in Windhoek

A TOTAL of 284 building projects worth more than N$124,1 million were completed in Windhoek during September 2021.

These comprised housing projects valued at N$75,5 million, additions worth N$44,7 million and walls costing N$3,8 million. This is in comparison to 81 projects completed in September 2020 with a total value of N$116,9 million.

According to a report by Simonis Storm Securities, the construction sector has been in an economic decline for the last six years, and weaker growth has been observed since mid-2015 already.

“As a result, many construction businesses closed down over the years and most construction companies currently operate at a loss. The last official figures show that employment in the sector dropped by 28,5% in 2018, and it is likely that additional jobs were lost between 2018 and 2021.

Debt instruments such as personal loans, business loans and overdrafts have largely assisted these companies in keeping their doors open, while low interest rates also somewhat reduced debt servicing costs.

“While Bank of Namibia expects the industry to record growth of 2,6% in 2021, we remain largely doubtful of the sector achieving positive growth in the short run,” Simonis said.

From a total of 147 building plans received, 247 including a carry-over of 100 plans from August, were approved during September 2021, compared to 274 approved during August 2021 according to building statistics released by the City of Windhoek.

Year to date, the city has received 2 317 plans and approved 1 951. This leaves a backlog of 366 plans still to be approved. August had a backlog of 100 plans waiting for approval that were finalised in September.

Year to date, 1 112 building projects have been completed. However, this also includes plans that were approved in prior years.

A total of 284 building projects were completed last month, compared to 166 in August 2021 and 81 in September 2020 (up by 250,6% y/y).

September was mixed across high-income and middle-to low-income neighbourhoods in Windhoek.

Year to date, the value of plans approved is below the value of building projects completed. On average, about N$85 million of value per month still needs to be unlocked, but this is dependent on whether project owners have funding to commence and complete their approved building plans.

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