Housing Finance in Namibia


This profile is also available in French here.

To download a pdf version of the full 2023 Namibia country profile, click here.

The overall population of Namibia increased from 1 409 920 920 in 1991 to 2 113 077 in 2011 and was estimated at 2 587 344 in 2021. With an average growth rate of 1.4% a year, Namibia’s population is projected to increase from 2.3 million in 2015 to three million by 2030. The percentage of the population that is urbanised is expected to rise to almost 60% in 2025. The Namibian housing crisis is characterised by high housing costs due to the slow and costly delivery of serviced land and negligible affordable formal housing production.

Namibia’s Gross Domestic Product (GDP) per capita levels are high by Sub-Saharan Africa standards, estimated at N$77 614 (US$4 729 in 2021). Real GDP growth is projected to increase to 3.2% in 2022 before moderating slightly to 2.9% in 2023. The projected improvement in 2022 is mainly on account of growth in the mining sector, particularly in diamonds and gold. Namibia’s unemployment rate is expected to be 21.68% in 2021, with a youth unemployment rate of 40.44% and an aggregate of 22.7% unemployed men and 20.62% unemployed women.

In July 2022, Namibia’s annual inflation rate jumped to a more than five-year high of 6.8%. This was caused by rising prices for food and transportation, as well as the effects of COVID-19 lockdowns and extreme weather that are still being felt.This has a negative impact on people’s borrowing attitudes and, in turn, their access to housing finance.

Namibia has a harsh desert and a low-precipitation climate, which are worsened by other existing vulnerabilities. The country has made significant progress in implementing various climate change mitigation and adaptation frameworks.

The most recent estimate of Namibia’s housing backlog was from the NDP4, estimated at 300,000 units. It will require N$76 billion (US$4.6 billion) to clear the backlog. The main barrier to housing delivery is a lack of available serviced land.

In Namibia, there are seven private lenders for mortgage loans. The fact that these mortgage loans are primarily given to higher-income households highlights the unequal access to housing finance. By August 2022, there were 426 institutions that had been registered and regulated, and the total book value of all outstanding microloans was N$7.4 billion (US$451 million).

The National Housing Institution (NHE) of Namibia is looking for partners to help it build more homes. High property prices and a soaring housing supply backlog are creating opportunities for private sector developers.

Find out more information on the housing finance sector of Namibia, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2023 edition, which has up-to-date profiles for 55 African countries.

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