Windhoek’s approved building plans decrease as construction sector bottoms out
The number of building plans approved in May 2018 decreased by 1.1% to 178 units compared to an increase of 31.4% reported the prior month, statistics released by the City of Windhoek show.
According to the City, the value of building plans completed in May decreased by 3.5% to N$55.9 million, following a sharp decrease of 42.6% reported the prior month.
Both the decrease in numbers and value of completed buildings were driven by a decrease in additions and wall which decreased by 11.6% and 46.6% respectively. Moreover, on a yearly basis, approved plans decreased by 9.6% in May compared to an increase on 11.8% reported 2017.
Meanwhile, the first quarter data released by the Namibia Statistics Agency for 2018 suggest that the construction sector is bottoming out. According to the NSA, real value added increased to N$1,2 million, which is better than in any quarters of 2017.
Klaus Schade, Research Associate at the Economic Association of Namibia said, this could be good news for the labour market, since the construction sector is labour -intensive and growth is expected to result in job creation.
“This in turn would support the wholesale and retail trade sector, since additional jobs create additional income and hence additional spending power,” Schade said.