The real estate market is expected to remain weak due to a depressed economic environment


According to the latest FNB house price index, the gloomy economic environment continued to weigh on house prices, with the index contracting 3.7% at the end of June 2019, compared to a 2% contraction during the same period last year.

The poor performance of the index is the worst performance recorded since 2009 and is explained by the contraction of prices in the four regions of the country. According to the index, the contraction brings the national average house price at the end of June 2019 to N $ 1,066,908, which is similar to the average price recorded in February 2016.

FNB Namibia’s market research director Ruusa Nandago said the real estate market is likely to remain stuck given the depressed economic environment, precarious unemployment situation and sluggish consumer spending.

“We therefore expect the housing market to remain in the red with any improvement likely to be slow and gradual. We believe that an economic recovery that will spur real wage growth and consumer spending is the critical catalyst that will put real estate market growth on a more solid footing, ”said Nandago.

Real estate prices in central Namibia showed a contraction of 6.1% at the end of June 2019 compared to a growth of 0.3% seen during the same period last year , bringing the average house price down to N $ 1.4 million from N $ 1.5 million recorded during the same period last year.

Meanwhile, the coastal region is the worst performer, with house prices contracting 11.4% deeper, bringing the average house price in the region to N $ 1,025,000 from N $ 1,157,000. $. The northern and southern regions contracted by 6.5% (average house price N $ 822,000) and 5.1% (average house price N $ 832,000), respectively.



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