National

Namibia’s rental prices take a knock due to COVID-19.


WINDHOEK, Nov. 19 -- Namibia's 12-month average growth in rental prices decreased 1.3 percent at the end of September, according to the FNB Residential Rental Index.
   Frans Uusiku, FNB market researcher, on Thursday in an analysis, said the sudden return of the rental index growth into negative territory affirms the pass-through effects of COVID-19 pandemic on the rental market.
   "This is unsurprising given the notable job losses and reduced income for the most part of the workforce as the country implemented COVID-19 containment measures during this period," he added.
   According to Uusiku, the government reported that 8,000 employees were dismissed during the first two quarters of 2020 compared to 950 employees dismissed over the same period of 2019.
   Uusiku said the shortage of quality tenants is likely to remain an issue as the economy continues to grapple with the prolonged economic recession.
   "Landlords will be compelled to offer competitive rates, especially in the upper market areas. That is to say, offering a discount of between 15 to 20 percent of the advertised rent," he added.
   Meanwhile, Uusiku maintains the view that the dynamics around the adoption of remote working and multi-family renting cultures are likely to be one of the key defining features of demand and supply forces in the rental market as the global community anticipates the resurgence of the second wave of COVID-19 pandemic. 
Xinhua