Commercial Real Estate - Namibia | Statista Market Forecast

The projected value of the Commercial Real Estate market market in Namibia is expected to reach US$10.81bn in 2024.
This estimate indicates a potential annual growth rate (CAGR 2024-2029) of 1.29%.
As a result, the market volume is anticipated to reach US$11.53bn by 2029.
In a global context, the United States is set to generate the highest value in the Real Estate sector, with an estimated worth of US$25.3tn in 2024.
Namibia's commercial real estate market is experiencing a surge in demand due to its growing tourism industry and stable economy.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Namibia is experiencing significant growth and development.

Customer preferences: Customers in the Commercial Real Estate market in Namibia are increasingly looking for modern and well-equipped office spaces. They prefer properties that offer amenities such as high-speed internet, ample parking, and access to public transportation. Additionally, there is a growing demand for flexible office spaces that can accommodate the changing needs of businesses.

Trends in the market: One of the key trends in the Commercial Real Estate market in Namibia is the increasing demand for commercial properties in prime locations. Businesses are looking to establish their presence in well-established business districts, which offer easy access to key amenities and a strong customer base. This trend is driven by the desire to enhance brand visibility and attract a larger customer base. Another trend in the market is the rise of coworking spaces. With the growth of startups and small businesses, there is a need for affordable office spaces that provide a collaborative environment. Coworking spaces offer flexible lease terms and shared amenities, making them an attractive option for entrepreneurs and freelancers.

Local special circumstances: Namibia has a stable political environment and a growing economy, which makes it an attractive destination for foreign investors. The government has implemented policies to encourage foreign direct investment, which has led to an influx of businesses and an increased demand for commercial real estate. Additionally, Namibia has a young and growing population, which creates a strong consumer base and drives demand for commercial spaces.

Underlying macroeconomic factors: The growth of the Commercial Real Estate market in Namibia can be attributed to several underlying macroeconomic factors. The country's GDP has been steadily increasing, driven by sectors such as mining, tourism, and agriculture. This economic growth has resulted in increased business activity and the need for commercial spaces. Furthermore, Namibia has a stable currency and low inflation rates, which provide a favorable investment climate for both local and foreign investors. The government has also implemented policies to promote economic diversification and attract foreign direct investment, which has further stimulated the Commercial Real Estate market. In conclusion, the Commercial Real Estate market in Namibia is experiencing significant growth and development due to customer preferences for modern and well-equipped office spaces, the increasing demand for commercial properties in prime locations, and the rise of coworking spaces. The stable political environment, growing economy, and favorable investment climate are also contributing factors. These trends and underlying macroeconomic factors are driving the growth and development of the Commercial Real Estate market in Namibia.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.