Namibia’s housing market is showing surprising resilience, with property buyers surging back into the market even as house price growth continues to ease. New data from FNB’s latest House Price Index for the third quarter of 2025 reveals a sharp rebound in transaction volumes that is masking a slowdown in price momentum, underscoring strong underlying demand despite persistent affordability pressures.
The FNB House Price Index recorded a 12-month average growth rate of 5.9% in 3Q25. While resilient since exiting negative territory in the first quarter of 2023 (1Q23), this growth rate eased compared to the 7.7% seen in 2Q25 and 7.0% recorded in 3Q24. The overall national house price now stands at N$1,380,042.
The most striking trend was the robust performance of market activity. Transaction volumes growth surged to 18.4% in 3Q25 on a 12-month moving average, marking a strong rebound from the -8.2% contraction recorded during 3Q24. This upward momentum in volumes has been resilient for three consecutive quarters since 4Q24.
The continuous rise in housing transaction volumes, even with slowing price growth, points to sustained demand in the residential property market.
Price growth momentum was broad-based across the regions in 3Q25:
- The Northern Region surged to 10.9% growth. The average house price there is N$975,000.
- The Southern Region advanced by 8.5%. The average house price stands at N$923,000.
- The Central Region recorded 4.8% growth. Despite this easing rate, the Central region remains elevated, maintaining the highest average house price nationally at N$1,738,000.
- The Coastal Region saw growth of 1.2%, an improvement from the -0.3% recorded in 2Q25. The average house price in this region is N$1,477,000.
The Central region still claims the largest share of national housing transactions at 39.6% in 3Q25, while the Northern region retains the second largest share at 36.7%. Coastal volumes grew buoyantly at 41.5%.
Volume growth was driven primarily by the small, medium, and large segments. On a 12-month moving average, small segment transactions grew by 14.5%, medium segment volumes rose 20.8%, and large segment transactions surged by 83.3%.
In stark contrast, the luxury segment suffered a significant decline, recording a price contraction of -23.9% and a volume contraction of -50.0% in 3Q25. Nationally, this segment recorded only three total transactions over the period. Notably, the luxury segment recorded no transactions over the quarter in both the Central and Coastal regions.
While sustained buying activity remains evident, it appears to be driven by a smaller segment of consumers possessing sufficient financial resources. The broader population continues to face affordability constraints.
Key market drivers include persistent foreign appetite for residential property, especially along the coast, and increased local investment in rental housing.
In light of lacklustre GDP growth, which softened to 1.6% year-on-year in 2Q25, and easing inflation (averaging 3.6% in September 2025), the Bank of Namibia reduced the repo rate by 25 basis points to 6.50% in October 2025. This measure aims to stimulate economic activity and should offer some reprieve to borrowers. However, the magnitude of this impact may be limited due to prevailing high unemployment rates and weak wage growth.
A major headwind identified in the report is the persistent decline in land delivery. Residential plot sales growth contracted sharply, registering -32.3% in 3Q25, a significant drop from the 9.8% growth seen in 3Q24.
This continued slowdown is noticeable across all regions, highlighting persistent supply-side constraints where the shortage of serviced land is increasingly impacting plot sales. This decline underscores the urgency for accelerated land servicing and infrastructure development to unlock new residential opportunities and support broader market participation.
Despite facing notable headwinds such as high unemployment and weak wage growth, the overall housing sector outlook is cautiously optimistic due to robust underlying demand and supportive policy measures. Strategic interventions focused on accelerating land servicing and improving credit access are critical for sustaining momentum and ensuring inclusive growth in the residential property market.
This report is based on bonds registered in the names of natural persons at the Deeds Office and uses bond values as a proxy for house prices, which should be used as a general guide to property values.
Source: Mandisa Van Wyk, Market Research Manager at FNB Namibia
Picture for illustrative purposes only. Photo: National Housing Enterprise – Namibia
