Huge housing backlog in Windhoek

The government’s latest low-cost housing project in Windhoek will hardly make a dent in the rising demand for housing in the capital.

11 August 2020 | Infrastructure



The housing backlog in Windhoek is about 100 000 units and is rising at 3.5% per year, according to the latest report by First Capital, which monitors housing trends in Namibia.

The report said government has initiated a joint two-year pilot project estimated to cost N$139 million for 1 200 housing units for ultra-low-income earners in Windhoek.

“Currently the housing backlog is estimated in the range of 100 000 in Windhoek, rising at a rate of 3.5% per annum. This project would rarely make a dent in its pilot phase, unless scaled up beyond.

“Put differently, at a rate of 1 200 houses for two years, the housing backlog will continue to rise, albeit at a slightly reduced rate of 3% from 3.5%, without the project intervention,” the report said.

N$522k for a 3-bedroom home

It costs about N$522 320 to build a three-bedroom house in Windhoek, compared to N$332 040 at Keetmanshoop, because of varying land prices, the report said further.

It compared construction costs in Windhoek, Keetmanshoop, Swakopmund, Ondangwa, Rundu and Katima Mulilo for June.

Land measuring 375 square metres in Windhoek’s Khomasdal suburb, which is considered a middle-income area, costs 11 times more than the price of land in Keetmanshoop’s middle-income residential area.

Taking into consideration all costs involved, land accounts for 6% of total cost at Keetmanshoop, while in Windhoek it accounts for 40%.

Most significant cost component

The report found that the cost of building a standard three-bedroom house is around N$390 200 in Swakopmund, and around N$332 040 in towns such as Rundu, Ondangwa and Katima Mulilo.

Building materials remain the most significant cost component in the house construction value chain, on average accounting for 63% of total cost in Keetmanshoop, Rundu, Katima Mulilo and Ondangwa.

On average, the building materials needed for a standard three-bedroom house cost N$215 355 in Katima Mulilo, Ondangwa and Rundu, while the same materials averaged N$213 992 in Keetmanshoop, Windhoek and Swakopmund.

The total cost of building materials in Keetmanshoop is N$1 753 less than in Katima Mulilo.

“The differences in building materials cost by town reflects varying prices due to supply sources that are largely unique to every town.”

Serviced land

The cost of a serviced plot, measuring 375 square metres, is cheapest in Keetmanshoop at N$18 700, followed by Rundu at N$27 900.

The same size of land would cost N$208 700 in a middle-class area such as Khomasdal in Windhoek, making it the most expensive, followed by Swakopmund at N$76 300.

“Though average growth of land prices has declined from the five-year average of 9% to 3% for the year to date, land still remains exorbitantly elevated, especially in Windhoek and coastal towns,” the report said.

It said high prices of land in Windhoek and coastal towns can be explained by higher demand, as opposed to the supply of land in these towns.

Mismatched demand and supply

Furthermore, the rising supply deficit in land servicing and delivery continues to put pressure on prices. Other than the mismatch between demand and supply of land, inefficiencies in servicing, as well as speculative motives among private developers equally contribute to high urban land prices.

The report added that the budget allocation to service land for low-income settlements has declined significantly, from N$1.3 billion in 2018/19 to N$418 million in the current financial year.

Of the N$418 million allocated for urban land servicing countrywide, a combined 6%, or N$24 million, was allocated to cater for land servicing in Windhoek, Walvis Bay and Swakopmund, which accounts for half of the urban population in the country.

Similar News


20 low-cost houses for fire victims

1 week ago - 08 October 2020 | Infrastructure

LEANDREA LOUWWALVIS BAYTwo months after a fire swept through the Otweya informal settlement in Walvis Bay, destroying homes, leaving hundreds homeless and killing a two-year-old...

Health facilities handed over at southern border

3 weeks ago - 25 September 2020 | Infrastructure

Ariamsvlei • Elizabeth Joseph The Anglo American Namibia Foundation (AANF) in partnership with the DeBeers Group officially handed over and inaugurated brand new port health...

Govt launches housing census

1 month - 01 September 2020 | Infrastructure

JEMIMA BEUKESWINDHOEK The ministry of urban and rural development and the Namibia Statistics Agency (NSA) have embarked on a housing survey that will contribute...

Police village in the pipeline

1 month - 21 August 2020 | Infrastructure

NAMPAWINDHOEKWith many police officers unable to afford decent accommodation in Windhoek, the Namibian Police Force (NamPol) is looking at constructing a police village to house...

Housing high on the agenda in Erongo

2 months ago - 17 August 2020 | Infrastructure

ADOLF KAURESWAKOPMUNDErongo governor Neville Andre has announced that Farm 37 will be ready for occupation by October.“People living in backyard shacks, residents of Otweya informal...

Huge housing backlog in Windhoek

2 months ago - 11 August 2020 | Infrastructure

ELLANIE SMITWINDHOEKThe housing backlog in Windhoek is about 100 000 units and is rising at 3.5% per year, according to the latest report by First...

AR’s Goreangab plots still being serviced five years later

2 months ago - 28 July 2020 | Infrastructure

OGONE TLHAGEWINDHOEKLand that the Affirmative Repositioning movement proposed for mass housing in Windhoek’s Goreangab informal settlement as part of a deal struck with State House...

War vets furious over housing 'propaganda'

3 months ago - 15 July 2020 | Infrastructure

ILENI NANDJATOONESIPeople's Liberation Army of Namibia (PLAN) pioneer war veterans - most of whom are still living in poverty and squalor - say they are...

Harambee target still unachieved

4 months ago - 09 June 2020 | Infrastructure

KENYA KAMBOWERUNDUPresident Hage Geingob's administration has not yet attained the goal of water security outlined by the Harambee Prosperity Plan (HPP) - a national plan...

Massive capital projects delayed

4 months ago - 05 June 2020 | Infrastructure

Phillepus UusikuThe arrival of Covid-19 has had far-reaching consequences on Namibia, with major road-building projects delayed in the Windhoek area.There are three ongoing projects in...

Latest News

PDK bags Song of The...

3 hours ago | Art and Entertainment

Windhoek • Michael Kayunde The Namibian Annual Music Awards (NAMAs) hosted another exciting edition of its premium live stream concerts on Saturday, 17 October.Featuring the...

Agribank disburses loans worth millions

15 hours ago | Banking

Agribank disbursed loans worth over N$246 million in the financial year ended 31 March 2020.At its virtual annual general meeting on Thursday, Agribank said more...

1nvest gold, platinum ETFs list...

15 hours ago | Economics

Staff Reporter - Specialist index tracking fund provider 1nvest, a collaboration between Standard Bank, Liberty and STANLIB, on Friday announced the listing of its gold...

RCC’s 254 workers still paid...

15 hours ago | Labour

OGONE TLHAGEWINDHOEKEmployees of the Roads Contractor Company (RCC) continue to be paid from the government’s contingency fund, with Cabinet yet to reach a decision about...

State withdraws GBV case over...

15 hours ago | Justice

KENYA KAMBOWERUNDUThe State has withdrawn charges of gender-based violence (GBV) against the Swapo councillor for Rundu Rural Constituency, Michael Shikongo, on the grounds that the...

Geingob ‘attack’ on whites condemned

15 hours ago | Politics

JEMIMA BEUKESWINDHOEKPresident Hage Geingob has been roundly condemned for equating white Namibians registering for next month’s election to an act of ‘war’.Officially opening Swapo’s campaign...

What I need to know...

15 hours ago | Business

A little place to call one’s own and to hopefully retire in is a goal many of us share. Whether your intention is to buy...

Criminalise long suspensions

15 hours ago | Opinion

Hundreds of government and public enterprise employees are currently on suspension with full pay.Some of them have been on suspension for as long as two...

Air Namibia creditor rejects settlement...

15 hours ago | Transport

OGONE TLHAGEWINDHOEKBelgian company Challenge Air SA has rejected a settlement offered by Air Namibia, citing mistrust in the airline’s ability to make good on its...

Load More