Residential
There has been strong demand in recent years for residential property, both for development projects and private rented housing. This trend has continued in 2022. Land plot transaction volumes, however, are still lower than in an historical perspective.
Transaction market
Despite rising interest rates, demand for residential property remains strong among professional investors. The transaction volume for private rented property are well on the way to reach the historic highs witnessed last year. We have great confidence in this segment, both due to the increasing professionalisation and consolidation in the professional private rented market and because of the continued strong demand from tenants looking to lease. Land plot transaction volumes are surprisingly low in 2022, but this is thought unrelated to demand, and is rather due to the limited availability of large plots.
Y-o-y growth residential resale prices
8 Residential
22
%
4.
Resale property - Seasonal adjusted
Rental market
The lettings sector in Norway is relatively small compared to other European countries as some 80 per cent of Norwegian households own their own home. In the larger Norwegian cities, with large student populations and a young demographic, the proportion of renters is far higher than in the country as a whole. After the summer, newspapers flourished with stories about tenants complaining about limited selection and rising rents. According to Finn.no there are half as many available rental properties in Oslo now compared to a year ago. Eiendom Norge's rental housing price statistics show a historically strong rise in rental housing prices in Norway and it is the cities of Stavanger and Oslo that are experiencing the strongest growth.
Y-o-y growth newbuild prices
0
%
8.
Housing price growth
House prices in Norway have so far risen by 6.7 per cent in 2022, but are still only 4.3 per cent higher than 12 months ago. After a long period of rising house prices, prices fell in September by 2.2 per cent - the largest house price fall in a single month since the financial crisis, and the worst September ever recorded according to figures from Eiendom Norge. It is expected that prices will continue to fall this year and next, before picking up in late 2023 and 2024.
Construction cost index, incl. Components
Den høye aktivitetsveksten vi har hatt i norsk økonomi inntil nylig har bidratt til et brennhett kontormarked med svært lav arealledighet og uvanlig høy leieprisvekst. Selv om etterspørselen etter kontorareal skulle kjøle seg ned framover, antar vi at arealledigheten vil bli holdt nede av historisk lav tilførsel av nytt areal. Sammen med høy vekst i KPI, venter vi at lav arealledighet vil bidra til å støtte oppunder veksten i kontorleie til neste år.
Outlook