Windhoek and Swakopmund’s construction landscapes are being shaped overwhelmingly by residential developments, as recent data reveals a stark contrast between housing demand and sluggish commercial activity. According to the latest building statistics from Simonis Storm, residential projects accounted for 73% of all approved building plans in Windhoek and a staggering 96% in Swakopmund in June 2025, underscoring a persistent focus on housing needs even as broader economic challenges slow large-scale developments.
The numbers paint a clear picture: Windhoek saw a 17% month-on-month decline in approved building plans in June, dropping to 158 from 191 in May. While this dip could reflect administrative delays, analysts suggest it also signals a maturing construction cycle after an active first quarter. Swakopmund, however, bucked the trend with a 22% monthly increase in approvals, rising from 64 to 73, alongside a 16% year-on-year growth. This divergence highlights regional disparities, with the coastal town benefiting from stronger developer confidence and targeted infrastructure investments.
A deeper look at quarterly figures reveals broader challenges. Windhoek retired 677 building plan applications in Q2 2025, approving 436 and completing just 126. Over the first half of the year, completions plummeted to 224—less than half the 577 recorded in the same period in 2024. The widening gap between applications, approvals, and completions points to systemic bottlenecks, likely driven by high construction costs, financing constraints, or logistical hurdles. Swakopmund fared slightly better, with 205 approvals and 117 completions in Q2, but even here, completions dropped year-on-year, reflecting nationwide pressures in turning plans into finished projects.
Residential demand outpaces commercial growth
The dominance of residential projects is unmistakable. In Windhoek, 115 of June’s 158 approvals were for residential additions—typically home expansions or upgrades—while new housing developments made up just 6%. Commercial projects lagged at a mere 4%, with activity concentrated in suburbs like Khomasdal, Katutura, and Klein Windhoek. This trend suggests a market driven by incremental housing improvements rather than large-scale developments, possibly due to affordability constraints or cautious developer sentiment.
Swakopmund’s figures are even more striking. Of its 78 approvals in June, 75 were residential, leaving commercial and institutional projects at less than 3% combined. The near-absence of non-residential activity indicates a market still heavily focused on private housing, with little momentum in retail, office, or industrial spaces. Analysts attribute this to oversupply in certain segments, subdued investor appetite, or a wait-and-see approach amid economic uncertainty.
Despite the slowdown in volume, the value of completed projects in Windhoek rose to N$441 million in the first half of 2025, up from N$319 million the previous year. This suggests a shift toward higher-value residential upgrades or boutique commercial builds, even as overall completions decline. Quarterly data, however, reveals volatility: Q2 completions in Windhoek totalled N$104 million (103 projects), a sharp drop from N$538 million in Q1 (97 projects). This erratic performance underscores the challenges developers face in sustaining project pipelines.
Swakopmund mirrored this trend, with completions falling to 204 in the first half of 2025 from 294 a year earlier. The total value also dipped to N$128 million from N$164 million, signalling smaller-scale, lower-value projects. Yet, June brought a glimmer of hope: completions nearly doubled from May, and values rebounded to N$49 million. While this may reflect delayed projects finally crossing the finish line, it offers cautious optimism for the sector.
Swakopmund’s strategic infrastructure push
Beyond residential demand, Swakopmund’s construction outlook is being reshaped by strategic infrastructure investments. The town’s airport upgrade—a key project approved by the municipality—aims to boost tourism and logistics, with adjacent land earmarked for industrial and commercial use. Road upgrades, such as Libertina Amathila Avenue, and public space enhancements like the Mole Cubicle project, are further priming the town for growth.
Land servicing initiatives in areas like Kramersdorf Extensions and Mondesa Heights are unlocking new residential zones, with public-private partnerships accelerating delivery. These efforts, coupled with streamlined municipal planning, could eventually diversify Swakopmund’s construction mix, drawing in commercial and industrial projects. For now, though, housing remains the undisputed leader.
The road ahead
The residential sector’s dominance reflects both enduring demand and broader economic headwinds. With high interest rates, rising material costs, and financing hurdles, developers are prioritizing smaller, lower-risk housing projects over large commercial ventures. For policymakers, the data underscores the need for targeted support—whether through streamlined approvals, incentives for affordable housing, or infrastructure investments to unlock new development corridors.
As Namibia’s construction sector navigates these challenges, the focus on housing is unlikely to wane soon. But with strategic planning and sustained investment, the balance may gradually shift, paving the way for a more diversified and resilient built environment in the years ahead.