About 150 people will get a chance to live in quality houses at affordable rent through a German-based company, Housing For Future Initiative.
Twenty-five houses were constructed for those living in shacks in Windhoek's Otjomuise Extension 10.
Namibia is faced with a housing backlog and access to home loans is made extremely difficult for low-income earners.
Those living in shacks are now able to rent in these modern houses at 50 percent of the market rent with a space of 55 to 70 square meters.
A father of three, Mwetuinda Tobias says, moving out from a small shack gives him a chance to live with his family in a decent shelter.
"My living condition will improve a lot because where I was living previously it was just a shack and the space is small, here even the use of a toilet is nice because you don't need to carry a bucket and go flush a toilet outside."
The Housing! For Future Project is initiated by a Germany-based company with long-term experience in affordable housing for rent.
Managing Director, Konstanze Duerotin explains the tenant selection process.
" We get in contact with them and collect information and documents like IDs and income then we have an interview with them and the criteria is that they are living in shacks and we can improve their lives and the other ones is the social aspect of living with big families or disabilities."
The Shack Dwellers Federation of Namibia's National Facilitator Edith Mbanga urged the new owners to maintain their new space.
" When other partners join in to fight the housing backlog in Namibia it assists a long way and I am happy for the new owners. when you look at the housing situation today in Namibia for low-income earners, it is very bad."
The 25 houses were built at a cost of over N$ 48 million.