Luderitz is Namibia's cheapest town for housing at N$376,260 as national prices rise 8.9%

Luderitz is the cheapest town in Namibia in which to buy a house, with an average price of N$376,260, while Windhoek remains the country's most expensive market at an average of N$1.8 million, according to FNB Namibia's third-quarter 2026 House Price Index.

The national average house price rose to N$1.5 million, and the bank's national house price index grew by 8.9 per cent year on year in the third quarter, up from 7.4 per cent in the previous quarter. Property transaction volumes, however, decreased by 3 per cent over the period.

Oranjemund recorded an average house price of N$383,572, followed by Oniipa at N$489,899, Mariental at N$543,770 and Karibib at N$551,000. At the higher end of the market, Henties Bay recorded an average of N$1.437 million, followed by Omaruru at N$1.431 million, Swakopmund at N$1.26 million and Okahandja at N$1.13 million.

Price movements differed sharply between towns. Omaruru recorded a 136.5 per cent year-on-year increase in average house prices to N$1.43 million, while Okahao grew 96.4 per cent to N$1.03 million. Luderitz recorded a 40.4 per cent decline over the year and Oranjemund prices fell 53.7 per cent, the index shows.

FNB Namibia market research manager Mandisa van Wyk attributed the pressure on prices partly to limited housing supply. "Persistent supply constraints, including limited housing stock and slow land servicing, continue to support property values, while affordability pressures are increasingly weighing on demand," she said.

Van Wyk added that inflation is reducing households' ability to enter the property market. "Higher inflation, fuelled in part by ongoing geopolitical tensions, has eroded household disposable income, reducing the capacity of many consumers to enter the housing market," she said. FNB expects limited housing supply to keep prices elevated, while higher borrowing costs could further affect affordability.