Building plans approved by City outperforms 2012
A total of 269 building plans to the value of N$192,7million were approved by the City of Windhoek in February 2013. On a year-to-date basis (January to February), 508 plans were approved compared to 436 plans last year this time.
According to the City of Windhoek building statistics for last month released by IJG Securities, the plans approved year-to-date is worth N$363 million compared to N$279.2million for the same period in 2012. On a month to month basis, 30 more plans were approved than in January, which is mainly due to the high seasonality present in the numbers during December and January.
“Of the 269 plans, 27 were in the Katutura area and 86 in Khomasdal, while 40 plans to the value of N$84.5million was in the “Windhoek” area. The 70 residential units approved year-to-date continued to receive growth impetus from the strong growth numbers posted by flats and houses with the year-to-date figure up 59.1% on the comparable period,” said the report.
The statistics showe that flats and house plans approved are valued at N$115.1million for 2013 year-to-date in contrast to the 44 plans worth N$46.3m for same period last year. One property valued at N$40million represents 45.6% of the total value residential plans approved in February 2013.
“425 additions to the value of N$206.3 million were approved year-to-date. This is already 46 plans more compared to the same period last year and N$53.1 million more in value terms.
“13 more non-residential plans were approved this year than in 2012, although the value of commercial building plans approved is down 47.8% on 2012. The value of commercial and industrial buildings approved is N$41.6 million in 2013 compared to N$79.7million in the same period last year. A commercial property valued at a significant N$20 million was approved during February.
The statistics also show that the 12-month cumulative figure for the number of plans approved increased to 2,976, with the year-on-year growth rate continuing its strong upward trend to 17.9% in February from 13.0% in January.
“The 12-month cumulative [figure] for value of plans approved increased to N$2.4 billion, the highest level on record, with annual growth accelerating to 51.5% compared to 45.0% in January. Strong increases were noted in October 2012, with the Grove Mall contributing to the spike in value of plans approved then.
However, what is also promising is that the number of plans approved also increased strongly, suggesting a broad-based increase in construction activity, as opposed to just one or two big projects. “In our view the construction sector will be one of the leading sectors in the Namibian economy in 2013, with both private sector and government having aggressive development plans. This is evident in this set of building statistics” said IJG Securities adding that according to various construction companies operating in Namibia, order books for 2013 are at record levels, which imply a strong growth trajectory for the year ahead.