Regions

↑  Bergen prime yield

Water, Cloud, Building, Boat, Sky, Mountain, Watercraft, Nature, House, Lake

25

%

4.

4  Regions

Bergen

Like the other big Norwegian cities, Bergen has also seen less activity in the transaction market in recent months. In 2022 we recorded 38 transactions and a total transaction volume of NOK 4.1 billion. Given the sharp interest rate rise, we have raised our prime yield estimate for Bergen from 3.75 per cent last year to 4.50 per cent as of April 2023.

Kyte Næringsmegling reports that the top rent for Bergen is NOK 3,200, where some of the most attractive rental properties with particularly good attributes can achieve higher rental levels than this. According to Kyte Næringsmegling, office vacancy in Bergen has been stable at around 8 percent.

↑  Trondheim prime yield

45

%

4.

Trondheim

In Trondheim, Norway’s third largest city, we recorded 19 transactions and a volume of NOK 5.5 billion during 2022. The biggest transaction by far was Statskog’s acquisition of Meraker Brug, one of the country’s largest privately owned estates, for NOK 2.65 billion. The property, which extends to 1,300 square kilometres, stretches from the east of Trondheim to the Swedish border and was sold by the Hans Rasmus Astrup foundation and the Thomas Fearnley, Heddy and Nils Astrup foundation.

Prime rent in Trondheim in the fourth quarter was NOK 2,500, with the most attractive properties with especially good attributes able to achieve rents of NOK 3,000. According to Norion Næringsmegling, the difference in rents between the best and second to best office properties increased during 2022. It is still difficult to predict how uncertainties in the economy will play out in the rental market, but a moderate increase in rents is expected in 2023.

Akershus Eiendom increased its prime yield estimate to 4.75 per cent in Q4 2022 with further upward pressure expected in 2023.

↑  Stavanger prime yield

45

%

4.

Stavanger

The Stavanger region has seen a boom in economic activity with new investments in the oil and gas sector as energy prices have surged. In 2022, we recorded 36 transactions and a total transaction volume of NOK 9 billion. ORO’s acquisition of Tjelta Eiendom, a property portfolio of 22 properties with a total value of NOK 1.9 billion, was the single largest transaction in 2022.

Like in other cities in Norway, the required rate of return has increased, and according to our observations, the prime yield estimate for Stavanger rose by 75 basis points from 4.00 per cent to 4.75 per cent during 2022. Prime rent in Q4 2022 remained stable at NOK 2,700 per sqm., although considerably higher rates have been observed for certain premises in the best buildings. The vacancy rate in Stavanger stands at 9.2 per cent, according to Eiendomsmegler 1.