House prices in Namibia accelerated sharply toward the end of 2025, even as fewer households were able to afford homeownership, according to the latest First National Bank (FNB) House Price Index.
The index rose to 7.6% in the fourth quarter of 2025 (4Q25), up from 5.9% in the previous quarter, highlighting growing pressure in the property market. At the same time, growth in housing transaction volumes slowed to 17.0%, compared to 18.4% previously, pointing to an increasingly uneven market.
Central and Coastal Regions Drive Price Growth
FNB’s Market Research Manager for Treasury, Mandisa Van Wyk, said the sharpest price increases were recorded in the central and coastal regions, while the northern region continued to lead in transaction volumes.
She noted that although the Bank of Namibia has reduced interest rates and inflationary pressures are easing, affordability remains a major obstacle for most households.
Mortgage credit growth stood at just 0.2%, indicating that lower interest rates have not translated into increased borrowing.
“The market remains resilient, but participation is narrow. Demand continues to outpace supply, which is keeping upward pressure on house prices, even as many households are priced out,” Van Wyk said.
Average House Prices Hit N$1.79 Million
The Central House Price Index climbed to 7.9% in 4Q25, up from 4.8% in the previous quarter and above the earlier 7.2% growth rate. The average house price nationwide now stands at N$1.79 million.
The central region has continued its recovery after emerging from contraction in early 2023, though transaction growth slowed slightly to 11.7%, down from 12.1%.
In the coastal region, house price growth strengthened to 4.2%, up from 1.2% in the third quarter. The average house price rose to N$1.54 million, while transaction volumes expanded by 36.4%, driven mainly by activity in the small and medium housing segments.
Northern Region Remains Most Affordable
The northern region recorded the strongest growth in housing activity, with transaction volumes rising to 15.5%, up from 11.8% in the previous quarter, following a rebound from contraction in 2024.
Although house price growth in the north eased slightly to 9.5%, it remains significantly higher than last year’s levels. The average house price of N$980,000 continues to attract buyers seeking more affordable options.
“The northern region continues to attract buyers due to relatively lower prices,” Van Wyk said.
In contrast, the southern region saw house price growth slow to 6.5%, with transaction volumes remaining flat. Only 22 housing transactions were recorded over the year, prompting FNB to caution that data from the region remains highly volatile.
Land Shortages and High Costs Fuel Housing Crisis
FNB identified robust demand and limited housing supply, particularly a shortage of serviced land, as the primary drivers of rising prices. The delivery of residential serviced plots declined by 34.7%, further widening the demand-supply gap.
Van Wyk noted that market momentum is increasingly being driven by higher-income buyers and international interest, while typical households remain constrained by elevated debt levels and affordability challenges.
Rising building material costs have also contributed to higher home prices, especially in urban centres such as Windhoek, Swakopmund, and Walvis Bay, forcing some buyers to consider smaller towns or northern regions.
Outlook: Prices to Remain Elevated
Looking ahead, FNB expects Namibia’s housing market to remain firm but uneven, with prices likely to stay elevated, particularly in the central and coastal regions.
“Housing prices are expected to remain elevated, supported by resilient demand and limited land availability. Transaction activity may continue to shift toward more affordable regions, particularly the north,” Van Wyk said.
The government has indicated it is considering measures such as housing and rental price caps to help address worsening affordability.
