protection of ownership, the Namibian government
can alter the sectors in which foreign nationals may
8. More extensive retail development then becomes
feasible
Our recent research also indicated that completing
licensing requirements to start a new business can exceed
100 days in total and corruption is perceived as extensive.
In addition, applying for what is called a Certificate of
Status Investment in order to obtain the right to invest
in and own properties in Namibia is a lengthy process.
Opportunities
Thus, property investors and developers should and they are, at present - tap into the development
cycle which is play ing itself out in Namibia
by contributing at the most appropriate place,
inc lud ing bu l k infrastr uct u re development,
industrial catalyst development (such a mining
infrastructure and container wharf development),
housi ng de velopment , reta i l opp or t u n it ie s
and tertiary sector (off ice) development. There
a re development oppor t unities in a l l of the
aforementioned sectors.
invest. However, this has not impacted negatively on
the property sector as yet and this provision cannot
be applied retrospectively.
Real estate
A substantial contributor towards Namibia’s
economic growth during 2012, 2013 and 2014
remains construction activity, both in residential and
commercial fixed property. The catalyst for property
development in Namibia has been the expanding
mining sector and the increased spending on public
works by government: both of these has seen the
enhanced need for housing, shopping centres, tertiary
sector offices and, even, further industrial development.
Development in the Namibian property sector is
following the typical development model which is
globally recognised as comprising the roll out of new
property development.
Development model
1. A catalyst presents propert y development
opportunities
2. Industrial and manufacturing development is
usually the first property development to occur
3. Limited residential development then follows
4. Limited social development (including schools,
medical centres and places of worship)
5. Retail development follows
6. Office development to accommodate the tertiary
business sector then follows
7. More extensive residential developments are then
practical
www.reimag.co.za
Rentals in the commercial property market
CATEGORY
GROSS RENTAL RATE
Retail in Windhoek
N$ 220
Retail in Walvis Bay
N$ 100
Retail in Oshakati
N$ 120
Office in Windhoek
N$ 125
Office in Walvis Bay
N$ 110
Office in Oshakati
N$ 45
Industrial in Windhoek
Industrial in Walvis Bay
N$ 50
N$ 35
Returns on commercial property
CATEGORY RETURN
Retail
9.5 %
Office
8.2 %
Industrial
12 %
Returns on commercial property in Namibia
correlate to South African returns. However, Namibia
does not have a formal property return index, per se,
and our research into this aspect (property returns)
was conducted by telephone and email and is reliant
upon mainly market sentiment.
RESOURCES
Courtwell Consulting
Offshore Handbook 2014
25