City of Windhoek woos investors to tackle housing crisis
Ogone Tlhage
City of Windhoek CEO, Moses Matyayi, is urging fund managers to invest in Namibia’s housing market, highlighting the significant opportunities for high returns.
Matyayi made this appeal at a recent investor showcase hosted by Makalani Fund Managers, where he emphasised that the severe housing backlog, particularly in Windhoek, offers a vast market for investment.
“We have set a target of building approximately 12 000 houses, or 12 000 erven. An area that is close to 300 properties for you to service will cost around N$80 000 if you’re lucky and everything is in order within a good nine to 12 months,” Matyayi said, outlining the costs and timeframes involved in developing Windhoek’s property market.
According to him, this presents an investment opportunity worth N$2.7 billion, should it be realised.
“We have an upgrade plan that needs to be implemented. When you look at our backlog – and I’ll elaborate on this – the backlog in Namibia’s housing sector was previously 300 000 houses. A 300 000-house backlog is a serious market. You cannot go wrong investing in that market because there is certainly demand for such a development across the country.”
Massive backlog
Despite the backlog and the potential to recoup investments, investors must also consider what the average citizen can afford and what the market can realistically provide, so as not to exacerbate the housing crisis, Matyayi said.
“In this market, how many people can afford housing, and what can they afford? This is what complicates the situation, because it’s a policy decision that is centralised within the government. It is policy-driven. There must be a call for radical transformation in this space, because, otherwise, the issue will continue to escalate – it’s cumulative and increasingly compounded,” Matyayi continued.“There needs to be a radical shift in understanding, to remove some of the bureaucracy and jargon, and to accelerate the process without, in my view, compromising quality or space,” he added.
City of Windhoek CEO, Moses Matyayi, is urging fund managers to invest in Namibia’s housing market, highlighting the significant opportunities for high returns.
Matyayi made this appeal at a recent investor showcase hosted by Makalani Fund Managers, where he emphasised that the severe housing backlog, particularly in Windhoek, offers a vast market for investment.
“We have set a target of building approximately 12 000 houses, or 12 000 erven. An area that is close to 300 properties for you to service will cost around N$80 000 if you’re lucky and everything is in order within a good nine to 12 months,” Matyayi said, outlining the costs and timeframes involved in developing Windhoek’s property market.
According to him, this presents an investment opportunity worth N$2.7 billion, should it be realised.
“We have an upgrade plan that needs to be implemented. When you look at our backlog – and I’ll elaborate on this – the backlog in Namibia’s housing sector was previously 300 000 houses. A 300 000-house backlog is a serious market. You cannot go wrong investing in that market because there is certainly demand for such a development across the country.”
Massive backlog
Despite the backlog and the potential to recoup investments, investors must also consider what the average citizen can afford and what the market can realistically provide, so as not to exacerbate the housing crisis, Matyayi said.
“In this market, how many people can afford housing, and what can they afford? This is what complicates the situation, because it’s a policy decision that is centralised within the government. It is policy-driven. There must be a call for radical transformation in this space, because, otherwise, the issue will continue to escalate – it’s cumulative and increasingly compounded,” Matyayi continued.“There needs to be a radical shift in understanding, to remove some of the bureaucracy and jargon, and to accelerate the process without, in my view, compromising quality or space,” he added.
