Commercial Projects Drive Windhoek Building Approvals

A total of 214 building plans valued at N$165,5 million were approved by the City of Windhoek in May, IJG Securities said on Friday in a report.

In the period, January to May, 1 104 plans were approved compared to 1 329 plans over the same period last year.

IJG said from a value perspective, however, plans approved in the first five months of this year are worth N$1,157 billion compared to N$965,4 million for the same period in 2013, which is an increase of 19,9%.

“This increase is mostly due to three large commercial projects that were approved by the municipality in February 2014. On a monthly basis, 33 fewer plans were approved in May when compared to April and the value of plans approved is down 11, 4% month on month,” the report said.

IJG said should the trend of value of plans approved be maintained for the remainder of the year, 2014 will most likely be equivalent to the record 2012 year.

Ignoring monthly volatility, the trend implies an average of N$167 million worth of building plans per month, which will match 2012, the report said.

A total of 185 residential units have been approved so far this year, down 8,4% on the comparable period of 2013, which is the first negative growth in 17 months.

Plans for flats and houses approved are valued at N$196, 6 million in contrast to the 202 plans worth N$401, 4 million in the same period last year.

On the additions front, 869 additions to the value of N$389 million were approved down 158 plans when compared to the same period last year and down N$49, 7 million in value terms.

The report said 50 commercial property plans were approved for the period, a notable increase over the 32 plans that got the go-ahead in 2013, while the value of commercial building plans approved is up 470,5% on last year this time.

“The value of commercial and industrial buildings approved thus far in 2014 is N$571,7 million compared to N$100,2 million in the same period last year.The higher figure for commercial properties is due to a few large projects approved, which make up more than half of the total value of plans approved for the year thus far,” IJG said.

The report said a commercial property to be situated in the central business district valued at N$40 million was approved during the month, another commercial property, valued at N$10 million is to be built in Goreangab and a N$6 million project to be built in Katutura was approved by the Windhoek municipality.

“In our view, the construction sector will remain one of the leading growth and development sectors in the Namibian economy through 2014, with both private sector and government having aggressive development plans. However, many such plans fall out of the Windhoek municipal area, and as such are not captured in the monthly building plan statistics,” the report said.

Source : The Namibian