Residential Real Estate Leases - Namibia

The Residential Real Estate Leases market market in Namibia is expected to generate a revenue of US$1.54bn by 2024.
House Leases, being the dominant segment, is projected to contribute to a market volume of US$800.30m in the same year.
Furthermore, the market is anticipated to exhibit an annual growth rate of 9.40% (CAGR 2024-2029), leading to a market volume of US$2.42bn by 2029.
Despite its vast natural beauty and growing economy, Namibia's residential real estate lease market remains relatively underdeveloped compared to other countries in the region.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Namibia is experiencing steady growth and development, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Residential Real Estate Leases market in Namibia are influenced by several factors. Firstly, there is a growing demand for rental properties due to the increasing urbanization and migration to urban areas. Many individuals and families are opting to rent rather than buy properties, as it provides flexibility and affordability. Additionally, there is a preference for properties with modern amenities and facilities, such as secure parking, access to recreational areas, and proximity to essential services like schools and hospitals. Trends in the market indicate a shift towards more sustainable and energy-efficient properties. With growing awareness of environmental issues and rising energy costs, there is a demand for properties that incorporate green technologies and practices. This includes features such as solar panels, energy-efficient appliances, and water-saving fixtures. Property developers and landlords are adapting to this trend by incorporating these features into their properties, attracting environmentally conscious tenants. Local special circumstances in Namibia also contribute to the development of the Residential Real Estate Leases market. The country has a young and growing population, with a significant portion of the population being in the rental age group. This demographic trend fuels the demand for rental properties, as young adults and families seek affordable housing options. Additionally, the tourism industry in Namibia is thriving, creating a demand for short-term rental properties such as vacation homes and serviced apartments. Underlying macroeconomic factors play a crucial role in the development of the Residential Real Estate Leases market in Namibia. The country's stable economic growth and political stability attract local and foreign investors, leading to increased construction and property development. Additionally, favorable government policies and incentives encourage investment in the real estate sector. For example, the government has implemented measures to streamline the process of obtaining construction permits and has provided tax incentives for property developers. In conclusion, the Residential Real Estate Leases market in Namibia is experiencing growth and development driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The demand for rental properties, preference for sustainable features, young population, and favorable government policies all contribute to the positive outlook for the market.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

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

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Residential Real Estate Leases - Namibia

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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