During Q4 of 2025, housing prices gained momentum while volumes growth tempered. The improved index growth of 7.6% signals sustained demand in the residential market, with buying activity remaining resilient.

Growth across market segments was mixed and continues to illustrate a broad-based growth across the country.

Transaction volumes grew by 17.0% on a 12-month moving average in 4Q25. Despite the slight quarterly slowdown, volumes growth remains robust and has remained in double-digit territory since the 1Q25.

Buying activity continues to be supported by strong consumer demand, reflected in the sustained price growth observed since 1Q23, when prices began accelerating.

Growth in the FNB House Price Index in 4Q25 was driven by rising housing prices and steady buying activity. The strong consumer demand coupled with the persistent shortage of serviced land continues to create a demand-and-supply mismatch exerting in upward price pressure. This is evident in firm house-price growth (7.6%), contrasted with softening yet still strong transaction volumes (17.0%) and a deep contraction in residential serviced plot delivery (34.7%). Regionally, price growth has been strongest in the central and coastal areas, while the northern and southern regions have slowed. Transaction volumes have moderated in most regions, except the north, where activity increased noticeably driven by the small and medium segments.

The subdued growth in mortgage credit (0.2%) points to elevated household indebtedness, suggesting that current market momentum may be driven primarily by higher income buyers and increased foreign interest. Although the Bank of Namibia has eased the repo rate, structural constraints remain including slow land servicing and broader economic limitations which continue to hinder greater uptake of household mortgage credit.

Furthermore, the government has also indicated that it is considering measures such as introducing a cap on housing and rental prices as part of its efforts to address affordability pressures. This potential policy direction reflects an acknowledgement of the challenges posed by rising housing costs and the limited availability of affordable housing options.

Looking ahead, Namibia’s residential property market is expected to remain firm but uneven, shaped by persistent supply shortages, selective demand, and structural economic conditions. Housing prices are likely to remain elevated, particularly in the central and coastal regions where demand continues to outpace available supply. Transaction activity may remain moderate, with growth concentrated in regions offering relatively more affordable options, such as the northern region. Overall, the residential property market is likely to maintain its upward price trajectory, driven by resilient demand coupled with limited land availability, within a narrowing consumer segment.

For more information, please call: 061 – 299 2222 or visit www.fnbnamibia.com.na