CoW approves 146 building plans in March
Stock-broking firm IJG Securities this week released its report on building plans for the month of March. IJG noted that while a lesser number of plans was approved comparatively year-on-year, it was significantly more in value terms.
A total of 146 building plans to the value of N$188.8 million were approved by the City of Windhoek in March 2016. On a year-to-date basis, 444 plans were approved compared to 672 plans over the same period last year, down 33.9%. However, in value terms, plans approved year-to-date are worth N$529.4 million compared to N$462.3 million for the same period in 2015, up 14.5%. This year to date increase in value of plans approved is mostly due to base effects as large commercial projects were approved by the municipality so far in 2016.
On a monthly basis, 36 less plans were approved in March than in February, and the total value of plans approved was down 3.2% month on month. 14 residential units and 126 additions were approved by the municipality during March. The value of the plans approved for houses and additions were valued at N$60.4 million and N$85.9 million respectively, while 6 commercial and industrial plans valued at N$42.4 million got the go-ahead in March. We have experienced a massive boom in the construction industry since 2010, especially over the last 4 years, with an average of N$2.2 billion worth of building plans that were approved over this period. From a GDP perspective, the Namibian construction industry contributes about 4% to GDP, or N$5.7 billion recorded 2014,” IJG said. Added 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 were completed during 2015 and construction of the Husab mine nearly completed, the growth contribution from the construction sector is expected to decline.”