Housing Prices Rise By 8.9% In Q3 Of 2026

House prices has increased by 8.9% in the third quarter of 2026, up from 7.4% in the previous quarter, while property transaction volumes contracted by 3%, pointing to continued affordability pressures in Namibia's housing market.

According to the First National Bank Namibia's Market Research Manager, Mandisa Van Wyk the 12-month national weighted average house price has reached N$1.5 million, compared to N$1.4 million in the second quarter and N$1.3 million ecorded during the same period last year.

Van Wyk reported that transaction volume growth contracted by 3% during the quarter, reversing the 2.8% growth recorded in the second quarter and falling below the 18.4% expansion reported in the third quarter of 2025.

Regionally, the central region recorded the strongest house price growth at 11.4%, with the average house price reaching N$1.936 million, with the coastal region reported growth of 3.7%, with an average price of N$1.532 million, while the northern region recorded a 1.6% increase to N$991,000.

In addition, the southern region reported a 3.4% contraction in house prices, with the average standing at N$892,000.

Meanwhile, housing market activity weakened across most regions. Van Wyk reported that transaction volumes contracted by 9.5% in the northern region and 25% in the southern region, while the coastal region recorded no growth. The central region accounted for 48.2% of all property transactions nationally during the quarter.

Van Wyk attributed the continued increase in house prices to limited housing stock, slow land servicing and shortages of serviced residential plots, which continued to restrict the supply of properties available to buyers.

She also noted that rising inflation and reduced household disposable income had weighed on consumers' ability to purchase homes, although mortgage credit growth improved to 2.8% year-on-year in August 2026.

Van Wyk indicated that housing supply shortages would continue supporting property prices, while a further 25-basis-point increase in the repo rate was likely to add pressure to borrowing costs and affordability.

She further reported that residential plot transactions declined by 15.5% during the quarter on a 12-month moving average basis, compared to a 26.7% contraction in the second quarter.