Seventy-three building plans valued at N$71.9 million approved
A total of 73 building plans valued at N$71.9 million were approved by the City of Windhoek in December 2015, while no data was recorded for the number of building plans that were completed during the month, a recent report by IJG indicated.
IJG said, “on a year to date basis, 2,467 plans were approved with a value of N$2.1 billion, versus 2,846 plans valued at N$2.2 billion for 2014. This represents a 4.4% decrease in the value of plans approved on a year to date basis, largely due to base effects.
382 residential units were approved by the municipality during 2015, with the yearly figure down 15.7% on 2014. Plans for flats and houses approved were valued at N$466 million in 2015 in contrast to the 453 plans worth N$477 million over 2014, down 2.4% while 136 commercial and industrial plans were approved through 2015, 16 more than the 120 projects that got the go-ahead in 2014. The value of commercial and industrial building plans approved, however, is down 31.7% on 2014 according to IJG.
“In our view, the Namibian construction sector will remain vibrant during 2016, with both private sector and government having aggressive development plans.
However, as the construction at the B2Gold mine and the Tschudi copper mine being completed during 2015 and construction of the Husab mine nearly completed, the growth contribution from the construction sector is expected to decline,” said IJG.
“A major concern is the possibility of water restrictions in Namibia, especially the central region. Water shortages and restrictions in Windhoek will directly affect economic activity in Namibia, impacting water dependent industries, such as construction. If water restrictions are implemented in Namibia, it would have a severe impact on the construction industry as they are heavily reliant on water supply,” IJG noted.