FNB Namibia house price index reports 7% growth in Q3 2024

 

 

The FNB Namibia House Price Index for the third quarter of 2024 has revealed a growth of 7%, with notable increases observed in the central, coastal, and northern regions. However, the southern regions continued to experience sluggish growth. According to Market Research Manager at FNB Namibia, Mandisa Van Wyk, the growth in house prices was also supported by improved transaction volumes, although they remain in contraction.

 

 

While the house price index has shown positive growth, FNB Namibia forecasts a slower pace moving forward. The primary factors contributing to this are slow growth in mortgage credit demand and challenges related to affordability. These issues are expected to dampen the demand in the residential property market, leading to more modest price growth in the coming months.

Van Wyk emphasized that the affordability constraints faced by households could have an impact on future market activity, further slowing the upward trend in house prices. Despite this, the overall outlook remains positive, though at a more cautious pace.