City of Windhoek approves 170 building plans worth N$169.4 million in April
In April the City of Windhoek approved 170 building plans, an increase by 12 more than the 158 approved in March. The plans value increased by N$40.4 million to N$169.04 million in April from N$128.6 million recorded in March.
According to City of Windhoek, a total of 62 building plans were completed at a value of N$55.2 million in April while about 2200 building plans were approved worth approximately N$2.06 billion on a twelve-month cumulative basis which is 7% lower in value terms than cumulative approvals in April 2018.
The largest number of building plan approvals in April were made up of additions to properties, showing that 132 additions to properties were approved with a value of N$59.3 million while new residential units accounted for 32 (worth N$33.8 million) of the total 170 approvals registered in April. Furthermore, only 6 New commercial units valued at N$76.0 million were approved in April.
According to IJG Research, growth in commercial and industrial construction activity remains extremely subdued as the decrease (on a 12-month cumulative basis) in credit extended to corporates also reflects.
“Commercial banks currently carry a healthy monthly average liquidity position of N$3.79 billion, providing sufficient levels of loanable funds. Consumers and corporates alike therefore seem curtailed by waning appetite for credit, or are simply not meeting affordability requirements for loans with which to pursue construction projects. A lack of confidence in the economy is acting on both willingness to invest form individuals and corporates as well as appetite for risk from banks,” IJG stated.