Staff Writer
Namibia’s residential property market showed mixed results in the final quarter of 2025, according to the latest FNB House Price Index report.
House price growth remained modest due to weak economic conditions, strained household finances and uneven activity across regions.
The FNB House Price Index rose to 7.6% in the fourth quarter of 2025 from 5.9% in the previous quarter. Over the same period, growth in transaction volumes eased to 17% from 18.4%.
“This reflects an uneven market, with strong price growth observed in the central and coastal regions, while the northern region continues to lead in transaction volume activity. Despite the Bank of Namibia’s efforts to stimulate activity through repo rate reductions and easing inflation, these conditions have not translated into stronger uptake of mortgage credit. Many households remain priced out of the market, and the housing sector continues to expand even as broader consumer participation stays limited. Overall, Namibia’s residential property market remains resilient, with demand consistently outpacing supply, which should continue to place upward pressure on housing prices,” FNB said.
The report shows that while nominal house prices continued to rise, real price growth remained under pressure after accounting for inflation.
This indicates that the market has not yet entered a strong recovery phase, despite some areas showing steady demand. High interest rates, slow income growth and cautious consumer sentiment continued to affect affordability, especially for first-time buyers.
FNB said overall housing market activity remained restrained, reflecting wider economic pressures.
Although inflation eased compared to earlier periods, higher living costs and borrowing expenses continued to limit households’ ability to commit to property purchases. Many buyers chose to delay decisions while waiting for better conditions.
Regional trends showed differing patterns across the country. Windhoek continued to record relatively stronger demand and accounts for a large share of residential transactions, though price growth in the capital remained moderate due to affordability limits and cautious lending.
Coastal towns showed signs of stabilisation after earlier volatility, supported by lifestyle demand and investor interest in rental properties. Several inland towns continued to record weaker demand and slower property turnover.
The report also highlighted ongoing challenges related to land delivery and housing supply.
Limited availability of serviced land remained a key constraint, particularly in urban areas where demand for affordable housing is high.
While some progress has been made in releasing serviced plots, the pace has not been sufficient to reduce housing shortages or ease upward pressure on prices in certain parts of the market.
