Housing market shows steady growth, says FNB Namibia

The residential property market continued its upward trajectory in the second quarter of 2025, according to the latest FNB House Price Index. The 12-month average growth stood at 7.7%, slightly down from 9.4% in the first quarter but still well above the 1.7% recorded in 2Q24.

Price trends varied across property segments, with small homes rising by 5.9%, medium properties barely moving at 0.2%, large homes declining by 6.6%, and luxury properties falling sharply by 32.5%. Regionally, the southern and northern areas led growth with 14.6% and 14.4% increases, respectively, while the coastal region saw a small contraction of 0.3%. The national average house price reached N$1,360,664, up from N$1,345,270 in 1Q25.

Transaction volumes were strong, rising 15.5% on a 12-month moving average, driven by the central, coastal, northern, and southern regions, which saw growth of 12.5%, 35.6%, 8.1%, and 16.7%, respectively. Despite high prices, the market remains resilient, supported by sustained consumer demand, local investment in rental housing, and interest from foreign buyers.

Mortgage credit uptake remains subdued, with only a 0.2% monthly increase in July 2025. Authorities hope a 25-basis-point reduction in lending spreads will ease borrowing costs, encouraging broader participation in the housing market.

Looking ahead, municipalities are accelerating plot servicing, and combined with easing lending conditions, this is expected to enhance access to residential property and sustain strong market demand.

The above is extracted from the FNB Namibia House Price Index report

Published by: FNB Namibia @Parkside, 130 Independence Avenue, Windhoek
Authored by: Mandisa Van Wyk