Real Estate Investor Magazine South Africa August 2015 | Page 64

AFRICA

The Namibian Property Market

The value growth in the commercial sector is on par with South
African commercial property portfolios

N

amibia is a stable country to invest in. The
economy is expected to expand by 5.6%
in 2015, supported by robust construction
works, recovery in agriculture and sustained growth in
wholesale and retail trade.
Namibia offers a wealth of business and property
investment opportunities to both local and foreign
investors.
The Property Valuations Act is set to regulate the
transparency of valuations done in Namibia. A possible
property reform may introduce amendments to laws,
which will regulate foreign land/property ownership,
urban land development, as well as measures to curb
escalating rentals and sales prices.
The industrial sector is currently stable and offers
good rental income with long-term tenants in sought
after locations such as Prosperita, northern and
southern industrial areas as well as the Brakwater areas.
There is currently an under supply for units
measuring between 250m2 and 500m2 thus pushing
asking rentals upwards. In the northern part of
Windhoek there are plans to develop smaller industrial
parks, an industrial business park in the Brakwater area
as well as another in Lafrenz.

“Namibia offers a wealth
of business and property
investment opportunities to both
local and foreign investors.”
In general, office demand has improved and smaller
to medium sized developments will come on stream
over the next two to three years. There is an increasing
demand for newly built prime office properties
with a couple of developments on the northern and
southern boundaries of the Windhoek CBD as well
as the southern suburbs of Windhoek currently under
construction or near completion.
Interest in the Windhoek CBD is improving,
however, parking still remains a constraint. The
Winhdoek Maerua Mall area located on the southern
fringes of the Windhoek CBD and Oshakati in
northern Namibia are the most popular office nodes.
62

AUGUST 2015 SA Real Estate Investor

Retail performed well in 2014 with demand for retail
space at regional centres very high while Northern
Namibia has seen exceptional expansion, as well as
future growth for value centres. Walvis Bay is expected
to see substantial retail growth over the next two to
three years.

The opening of The Grove Mall, a 55, 000m2 regional
centre in October 2014 had a significant impact on
the Windhoek retail landscape bringing new national
retailers to the local market. Going forward, The
Grove Mall can impact existing retail centres trading
in Windhoek with expected decreases in retailer
turnovers. Auas Valley Shopping Mall, a convenient
shopping centre opened in September 2014, West
Lane Centre in Pioneers Park in the western areas of
Windhoek also opened.
Pozular nodes for retail include Windhoek Central,
Kleine Kuppe/Grove Area (Windhoek), Maerua
Mall area (Windhoek), Swakopmund CBD, Walvis
Bay CBD, Oshakati CBD and Rundu in Northern
Namibia.

NAMIBIA AT A GLANCE

Urban Population: 2.3 million, 38% (2013)
GDP: $13.11 billion (2013)
GDP Growth: 5.1% (2013)
Inflation: 5.6% - 6.7% (2013)
Current account as % of GDP: -3.8% (2013)
Price to Income Ratio: 5.42 (2014-2015)
Mortgage as % of Income: 63.99% (2014-2015)
Loan Affordability Index: 1.56 (2014-2015)
Price to Rent Ratio (in city centre): 10.76% (2014-2015)
Price to Rent Ratio (out of city centre): 3.32 (2014-2015
Gross Rental Yield (in city centre): 9.29% (2014-2015)
Gross Rental Yield (out of city centre): 30.16% (2014-2015)
Sources: The Africa Report, World Bank, Numbeo,
First National Bank (FNB) Housing Index.

RESOURCES
The Broll Report 2014-2015. French, I, ‘Real Estate:
Building the Future of Africa’ (2015),
PriceWaterhouseCoopers.
www.reimag.co.za