Namibia’s urban construction landscape is sending mixed but telling signals about the state of the economy, with recent data revealing a clear shift from large-scale commercial projects toward smaller residential upgrades and coastal town development. According to the latest Macro Pulse report by Simonis Storm Securities, building plan approvals and project completions in Windhoek and Swakopmund reflect a nation adapting to tighter financial conditions, higher input costs, and cautious investor sentiment—yet one showing resilience through incremental growth.
In September 2025, Windhoek saw a strong monthly increase in approved building plans, rising 28.4% from August to reach 226 approvals. By contrast, Swakopmund recorded a modest 4.9% monthly increase, with approvals climbing from 81 to 85. However, the annual comparison reveals a more nuanced story: while Windhoek experienced a 15.8% year-on-year decline, Swakopmund posted a remarkable 91% annual increase, albeit from a low base.
Quarterly figures further underscore this divergence. In the third quarter of 2025, total approvals in Windhoek and Swakopmund rose by 19% and 30% year-on-year, respectively. Yet, the number of completed building projects fell by 14% compared to the previous quarter, pointing to delays or a slowdown in construction activity as projects move from approval to completion.
From January to September 2025, Windhoek averaged 177 building plan approvals per month, far outpacing Swakopmund’s average of 70. This disparity reaffirms Windhoek’s position as Namibia’s primary urban growth hub. Nevertheless, Swakopmund’s steady improvement relative to historical averages suggests the coastal town is emerging as a secondary growth pole, supported by rising interest in residential, commercial, and tourism-linked projects.
Year-to-date, Windhoek received 1,808 building plan submissions, slightly lower than the 1,783 recorded during the same period in 2024. Swakopmund, however, recorded 630 submissions—a significant jump from 454 in the first nine months of 2024—highlighting growing investor interest in the Erongo coastal region.
Shift in project value and type
The value of approved building plans also tells a story of changing priorities. In Windhoek, the total value fell by 12% month-on-month to N$190 million in September. Despite this recent moderation, the cumulative value of approvals in 2025 reached N$2.3 billion year-to-date—nearly double the N$1.6 billion recorded in the same period last year. This suggests that significant investment commitments, particularly in commercial and mixed-use projects, were secured earlier in the year.
Swakopmund’s approved building plans were valued at N$95 million in September, down 6.83% from August. The year-to-date total stands at N$658 million, well below the N$2.5 billion recorded in the same period in 2024. However, last year’s figure was inflated by several large one-off projects. The 2025 trend indicates a return to a more normalized development pipeline, dominated by smaller-scale residential and commercial builds.
When it comes to completed projects, Windhoek’s construction activity remained steady in September, with 31 projects finalized—the same as in August but far below the 77 completed in September 2024. The value of completed projects in Windhoek was N$23.3 million, less than half the N$59 million recorded a year earlier.
Most of Windhoek’s activity was concentrated in additions and alterations, which accounted for 31 projects valued at N$50 million. Only 10 new houses were completed, and no commercial buildings were finalized—a clear sign that property owners are prioritising upgrades over new builds amid economic uncertainty.
Swakopmund, on the other hand, saw a modest rebound in September, with 28 projects completed at a value of N$20.3 million. Residential projects dominated, including 16 new housing units and 11 extensions or alterations, alongside two commercial developments. This distribution underscores sustained housing demand in coastal areas, driven by population growth, urban expansion, and interest from retirees and holiday-home buyers.
Monetary policy offers a lifeline
The recent 25-basis-point interest rate cut by the Bank of Namibia is expected to provide some relief to the construction and real estate sectors. By lowering borrowing costs and improving credit affordability, the rate cut may stimulate demand for smaller-scale housing projects and renovations, particularly in the residential market. Developers and homeowners who had postponed projects due to high financing costs may now be encouraged to resume activity.
However, the sector continues to face structural headwinds. Elevated construction input costs—especially for cement, steel, and imported materials—are compressing profit margins and deterring large-scale investments. Business confidence remains fragile, constrained by global uncertainty, slow growth in disposable incomes, and delays in public infrastructure projects.
As a result, the near-term recovery is likely to remain selective and incremental, driven largely by small-scale residential upgrades, extensions, and mid-income housing—rather than major commercial or industrial developments. A sustained recovery will depend on continued monetary easing, fiscal support for infrastructure, and improved investor sentiment heading into 2026.
Adapting to a new normal
Namibia’s construction sector is at a crossroads. Windhoek’s caution reflects broader economic hesitancy, while Swakopmund’s steady growth illustrates the potential of secondary urban centres. Both cities are seeing a move away from mega-projects and toward smaller, more manageable investments.
This adaptive approach may well be the sector’s strength in the coming months. Until macroeconomic conditions improve and investor confidence returns, it is the modest, incremental projects—home extensions, townhouse complexes, and coastal residential builds—that will keep the industry moving forward.
For now, Namibia’s builders and developers are building not just structures, but resilience.