Namibia’s luxury house prices jumped by 21% in the second quarter of 2026, reaching an average of N$9.25 million, despite only six sales being recorded in the market.
The latest FNB Namibia House Price Index shows that homes priced above N$6.5 million recorded the biggest price increase of all residential property categories.
However, the number of sales remained unchanged compared with the same period last year.
Nationally, house prices increased by 7.4% year on year to an average of N$1.46 million.
FNB market research manager Mandisa van Wyk says the market continued to show a gap between rising prices and property sales.
“Namibia’s residential property market continues to exhibit a divergence between house price growth and transaction activity, highlighting the uneven nature of the current housing cycle,” Van Wyk says.
Homes priced at N$1.5 million remained the most active part of the market, with 498 sales recorded in the second quarter.
But sales fell by 1.1% compared with the same period last year, while average prices rose to N$942 000.
In comparison, homes priced at N$3.5 million recorded 213 sales. Average prices increased to N$2.17 million.
The market for homes priced at N$6.5 million performed more strongly.
Sales increased by 20% to 40 transactions, while average prices rose by 6.6% to N$4.47 million.
COASTAL PRICES RISE AS SOUTH RECORDS DECLINE
The regional figures also show a clear divide between Namibia’s property markets.
The coastal region recorded the strongest price growth, with average house prices increasing by 11.9% to N$1.58 million. The region accounted for 24.8% of national transactions.
The central region remained the country’s biggest property market, accounting for 37.8% of sales.
Average prices rose to N$1.88 million.
Meanwhile, average house prices in the north fell by 0.7% to N$971 000, while sales remained unchanged.
The southern region recorded an even bigger decline, with average prices falling by 5.2% to N$905 000. Only 23 properties were sold during the quarter, and sales were unchanged from a year earlier.
LAND SHORTAGES KEEP PRICES HIGH
Despite slower property sales, the cost of land continues to rise.
Residential plot sales fell by 26.7% nationally in the second quarter.
Sales dropped by 33.3% in the central region and 44.3% at the coast. The north recorded a 14.5% decline, while the south saw a smaller fall of 0.4%.
At the same time, average land prices per square metre rose by 35.1% in the central region, 21.6% at the coast and 38.3% in both the north and south.
This means fewer plots are being sold, but the cost of land is increasing.
First National Bank of Namibia (FNB) attributes the pressure to shortages of serviced land, limited housing supply and high construction costs, rather than strong demand across the entire market.
FNB expects these supply problems to continue supporting house prices.
The report says faster land servicing, more housing construction and stronger income growth will be needed to make homes more affordable and allow more Namibians to buy property.
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