Windhoek – Namibia’s housing market seems to be correcting itself, as prices, especially in the upper tiers, are dropping sharply. This comes after a decade during which Namibia’s property prices shot through the roof to be among the highest in the world.
An 8.8% drop in prices in the last seven months has seen a reversal of the trend that was witnessed during the period between 2009 and 2015 when property prices shot up by 87.8% (from an average R400,000 to R900,000).
High demand and a limited supply of houses pushed prices in Namibia’s capital, Windhoek, skywards resulting in a decent middle-income house now costing on average R1.1 million (US$80,000), according to the latest housing price index released by the First National Bank of Namibia (FNB) in December 2017.
The average sluggish rise in house prices in the past three years, especially in the upmarket suburbs ‑ coupled with the country’s economic downturn – point to an imminent decrease in the general housing price index in all income brackets, if this trend continues.