Building plans valued at N$190 million approved for February

Martin Endjala

The City of Windhoek has approved 192 building plans for February 2024

This marks a significant increase from 76 building plans approved in January 2024.

The plans approved in February translate into a total value of N$190.7 million which is substantially more than the N$53.8 million recorded in January.

It also translates to a monthly growth rate of 152.6 percent and an 8.5 percent increase compared to February 2023.

According to Simonis Storm Securities Economist, Halleluya Ndimulunde, the CoW, in February, recorded the receipt of 186 building plans, representing an uptick from the 122 plans submitted in January.

However, it also marks a decline from the 202 plans submitted in the same month of the previous year.

In February 2024, a total of 31 building plans were completed with a combined value of N$22.9 million.

The bulk of these completed projects were situated in the Otjomuise and Wanaheda neighbourhoods.

Among these completed projects, residential houses were the most common, followed by additions to existing structures.

Ndimulunde stressed that the pressing demand for affordable housing presents both a challenge and an opportunity for the industry, adding that government policies and initiatives are crucial in supporting this sector.

She stated that actions that boost infrastructure development, promote affordable housing projects, and encourage sustainable building practices are vital for the construction industry’s long-term sustainability.

Additionally, between 15 January 2024, and 14 February 2024, the Municipality of Swakopmund received building plans estimated at a total value of N$42.9 billion.

This includes N$578,149 in building application fees, N$5,011 in building compliance fees, and N$57,744 in building fines issued.

In February 2024, the Municipality of Swakopmund approved 50 building plans with a total value of N$125.3 million. Among these approvals, 40 were for new residential buildings, six for institutions, two for industrial buildings, and two for commercial buildings.

Furthermore, the municipality recorded an increase in completed projects, with 28 projects completed in February 2024, compared to only six in January 2024. The total value of these completed projects amounted to N$27.1 million.

During the recent tabling of the National budget, the Minister of Finance Iipumbu Shiimi, announced measures aimed at accelerating the implementation of the approved National Housing Policy.

A total of N$700 million has been allocated in the 2024/25 financial year budget for upgrading informal settlements, extensive land servicing, and other programmes to enhance access to housing opportunities nationwide.

In a move to enhance access to housing, adjustments will be made to transfer duties and stamp duties brackets in line with inflation. Consequently, the exemption level will be raised from N$600,000 to N$1.1 million.

In addition, the threshold to trigger the 8 percent transfer duty rate will be increased to N$3.15 million, effective from the 2024/25 financial year.

With these measures in place, it is anticipated that there will be a resurgence in local construction activity and an increase in building plan engagements in 2024.