Rent prices slip back into negative territory

The FNB Residential Rental Index shows that the 12-month moving average growth in rent prices took a dip of -1.3% at the end of September 2020.
This brings the national weighted average rent to N$7 091 at the end of September 2020 compared to N$7 164 recorded over the same period in 2019, according to the market research manager at FNB Namibia, Frans Uusiku.
“The sudden return of the rental index growth into negative territory affirms the pass-through effects of Covid-19 pandemic on the rental market,” Uusiku says.
He continues: “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. 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.”