More flats, houses building plans completed in Jan

On an annual basis, 2 283 building plans worth approximately N$1.75 billion were approved.

17 February 2021 | Economics

It is evident that the Namibian construction industry continues to tread water as the value of approvals continues to decline in real terms. IJG Research.

PHILLEPUS UUSIKU

Only 34 out of the 122 building plans approved by the City of Windhoek (CoW) in January this year were completed with the flats and houses category dominating the chart.

50 flats and houses building plans were approved and 30 of them have been completed, while 71 additions were approved and only 4 of them were completed. This implies that 30 of the 34 completed building plans are flats and houses.

The total 122 buildings plans were valued at 84 million, a 6.1% month-on-month increase from the 115 building plans approved in December 2020.

According to IJG, buildings with a value of N$57.6 million were completed during January, a 79.9% month-on-month increase. 2021 is off to a slower start in terms of value of approvals, compared to January 2020 when 121 building plans worth N$189.4 million got the nod.

On an annual basis, 2 283 building plans worth approximately N$1.75 billion were approved, an increase in number of 14.7% year-on-year, but a decline of 8.5% year-on-year in value terms over the prior 12-month period, IJG pointed out.

Additions

In terms of number of approvals, additions to properties made up the largest portion of approvals. For the month of January, 71 additions to properties were approved with a value of N$25.7 million, 7 more than the number of additions approved in January 2020, IJG said.

The value of the additions approved in January is however 55.6% lower than those observed in the first month of 2020. 4 additions worth N$890 000 were completed during the month.

Additions to properties have made up 68.9% of the cumulative number of approvals, but only 39.4% of the total value of approvals, indicating that the planned construction activity will mostly consist of smaller building projects, IJG added.

New residential units were the second largest contributor to the total number of building plans approved in January. 50 new units worth N$51.3 million were approved in January, representing a 102.9% increase from the N$51.3 million worth of approvals in the first month of 2020.

On an annual basis, residential units recorded a 74.6% year-on-year increase in value. 30 new residential units worth N$57.6 million were completed during the month, IJG pointed out.

Commercial

Only 1 new commercial unit, valued at N$7 million, was approved in January. This compares to 6 units valued at N$136 million approved in January 2020. On average over the last 20 years, 4 commercial units valued at N$26.5 million were approved in the first month of the year.

On a rolling 12-month perspective, the number of commercial and industrial approvals have slowed to 36 units worth N$202.2 million as at January, compared to the 51 approved units worth N$641.6 million over the corresponding period a year ago. No commercial and industrial units were completed in January.

The low single digit number of commercial approvals witnessed over the last 11 months indicates that most businesses are not planning on expanding their existing operations. It is evident that the Namibian construction industry continues to tread water as the value of approvals continues to decline in real terms, IJG said.

Overall, the 12-month cumulative number of building plans approved increased by 14.7% year-on-year in January. A total of 2 283 building plans to the value of N$1.75 billion were approved over the last 12 months which represents a decline in value terms of 8.5% year-on-year, IJG [email protected]

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