Construction Continues On g Path

THE construction industry, especially in Windhoek, has continued on its g growth path.

Statistics from IJG Securities this week showed that a total of 257 building plans to the value of over N$188 million were approved by the City of Windhoek in June.

From January to June, 1 361plans were approved compared to 1 619 plans over the same period last year. In value terms, however, plans approved from January to June were N$1,34 billion compared to N$1,09 billion for the same period in 2013, up 22,6%.

This increase is mostly due to three large commercial projects that were approved by the municipality in February.

On a monthly basis, 43 more plans were approved in June when compared to May and the value of plans approved is up 13,8% month-on-month.

IJG Securities 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,” he said.

A total of 228 residential units have been approved from January to June, down 5,4% on the comparable period of 2013, the fourth consecutive month recording negative growth.

Plans for flats and houses approved from January to June, were valued at N$239 million in contrast to the 241 plans worth N$438 million in the same period last year.

In terms of additions, 1 071additions to the value of N$468 million were approved down 267 plans when compared to the same period last year and down N$90 million in value terms.

IJG said 62 commercial property plans were approved, a notable increase over the 40 plans that got the go-ahead in 2013, while the value of commercial building plans approved is up 446 %.

The value of commercial and industrial buildings approved so far this year is N$637 million compared to N$116 million in the same period last year.

IJG said 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.

“A commercial property to be situated in the CBD, valued at N$10 million was approved during the month, another commercial property, valued at N$43 million, is to be built in Kleine Kuppe.

IJG said 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,” IJG said.

Source : The Namibian