Despite the majority of ordinary Namibians being unable to afford skyrocketing property prices, Windhoek has been ranked as one of the least expensive cities in Africa in terms of renting office space, retail, residential and industrial space.
The capital was ranked 30th out of 35 cities in the Africa Prime Rent Ranking compiled by Knight Frank, an international real estate company.
According to the report, Windhoek’s office space rentals average N$168 per square metre, while retail space costs about N$288. Industrial space averages N$60 per square metre, while the residential rent for a four-bedroom executive house is in the region of N$33 600 per month.
The most expensive city for renting property is Luanda in Angola, followed by Lagos and Abuja in Nigeria.
In Luanda, office rent costs the equivalent N$1 800 per square metre, retail costs about N$1 440 per square metre, while industrial space is going for N$252 per square metre. An executive four-bedroom home costs in the region of US$25 000 to rent, which is the equivalent of N$300 000.
In Lagos, office space rates are N$1 020 per square metre, while retail rent costs N$960 per square metre. It costs on average N$96 per square metre to rent industrial space and N$96 000 per month for a four-bedroom house.
In South Africa, Johannesburg was rated the 12th most expensive city in Africa followed by Cape Town at number 13.
Office space in Johannesburg costs an average of N$264 per square metre, while retail space is N$720 per square metre, and a four-bedroom executive house goes for N$54 000 per month.
In Cape Town, office space costs an average N$216, retail space N$720 per square metre and a four-bedroom executive house averages N$60 000 per month.
The results of the survey come as rental and property prices in Namibia continue to soar as a result of increased demand and limited property availability and development.
According to the report, Namibia experienced steady house price growth during 2014, supported by limited supply. In Windhoek, the prime residential locations are mostly found in leafy suburbs such as Ludwigsdorf, Eros Park and Klein Windhoek.
However, the Central Business District (CBD) has also seen increased residential developments, supported by continuous development activity in the capital city. In recent years, the limited availability of land in the CBD has pushed development activity to peripheral areas.
Meanwhile, Klein Windhoek has seen increasing office development, which has mostly involved the conversion of older residential buildings into boutique offices.
The report also notes that significant volumes of retail space have been added to the Windhoek market recently, both in stand-alone malls and mixed-use developments.
By Ellanie Smit: Namibian Sun