Demand strong, prices rising in Namibia’s coastal areas

The Namibian coastal property market, which has been less affected by the global recession thanks to its uranium wealth, is performing well on the back of high demand and rising property price growth.

“Property prices have increased by between 15% and 25% over the last few months and the demand for property is high,” says Claudia Ramos, Broker/Owner of RE/MAX Coastline Property Centre, which has specialised in property in the coastal areas of the Erongo region, including Walvis Bay, Swakopmund and Henties Bay since 2005.

“Prices for entry-level properties in Kuisebmond average around N$199 000, while a mid-level property in the central regions will cost around N$800 000. In Meersig and Lagoon, upmarket properties are priced at N$2,5 million and above. Vacant land prices average N$250 000 and up,” explains Ramos. “There are very few overpriced properties in the market, given the current market conditions of high demand coupled with a shortage of supply, particularly evident in Swakopmund. As a result, the profit margins on properties sold are solid – as much as 20 – 30% on a property bought last year and sold this year.”

Referring to the FNB Namibian House Price Index released earlier this year, Adrian Goslett, CEO of RE/MAX of Southern African says that Namibia’s residential market recorded double-digit increases (14.1%) by the 4th quarter of 2009. “This indicates that the country’s property market may be further down the path of recovery than that of neighbouring South Africa,” he says.

Several developments underpin the performance of the coastal property market in Namibia. “The Walvis Bay International Airport, as well as the harbour, continues to support the economy in this area,” adds Ramos. “Swakopmund remains one of the most sought-after destinations in Namibia due to its charming atmosphere, friendly people and good infrastructure. Its popularity among tourists, homebuyers, retirees and property investors alike, has been boosted by extensive uranium mining activity. Three mines are in operation, while explorations for several other mines are underway. This has brought families from all over the world to Namibia and to Swakopmund,” she says.

Residential and commercial sales remain buoyant, while the rental market is heating up. The demand for rentals in Swakopmund in particular far outstrips the supply of rental units, driving up prices. This is in part due to the slow pace of property development in previous years, and the phenomenal growth of the town.

Article by: www.remax.co.za