The number of building plans approved within the capital city, Windhoek municipal area by July 2017 contracted by 6.2 percent year-to-date (YTD) to 2,050 units, compared to a contraction of 27.5 percent YTD in July 2016, as revealed by research firm, Simonis Storm Securities (SSS).

The firm on Thursday in an analysis of the construction industry said, on a monthly basis, building plans approved contracted further by 31.5 percent compared to a growth of 8.1 percent in the previous month.

“Alongside, the number of buildings completed also contracted by 16.2 percent YTD to 354 units compared to a contraction of 41.7 percent YTD to date in July 2016. On a monthly basis, buildings completed rebounded by 94.7 percent after a contraction of 62 percent was recorded in the prior month,” said SSS Economist, Frans Uusiku in a statement.

According to Uusiku, in monetary terms, the value of buildings completed continued to contract by 4.1 percent YTD to 32.7 million U.S. Dollars in July 2017, compared to a contraction of 33.1 percent YTD in July last year.

Uusiku in his analysis further said that overall, although the notable contraction in the number of building plans approved and buildings completed to date has relatively improved from 12 months ago, the research firm believes that the recession in the construction sector may be longer than expected.

“This is because most construction activity that drove output in the past was government activity, construction on mines and roads, which have come to a standstill, as government revenue squeeze lingers,” he added. Enditem

Source: Xinhua/Newsghana.com.gh