Factors Determining House Prices in Windhoek

The main purpose of the study was to examine determinants of property or house prices in Windhoek and their effects on house prices using the Hedonic Pricing Model. The study also aimed to identify variables that can be targeted by policy makers in order to make housing affordable in Windhoek. This is because house prices have escalated astronomically in recent years to levels that are beyond what the majority of the population can afford. Results show that erf-size, which is a portion of land marked off for building purposes has the most impact on House prices. Due to lack of serviced land in Namibia, most specifically in the city, large portions of land tend to increase house prices.Time has a significant impact on property price or house prices. House prices have been changing with time. House prices fall and rise with changes in demand and supply factors in the market as a whole. Location has a significant impact on house prices, house price tend to differ from location to location, for example in this case locations from the urban side of city tend to experience higher house price increase compared to locations of the informal settlements.