Introduction

The policies of Donald Trump are expected to shape international economic relations in 2025. Domestically, GDP growth is projected to improve, accompanied by a gradual decline in interest rates. The office rental market is anticipated to recover following a relatively weak 2024. Despite persistently high interest rates, we foresee continued improvement in the transaction market.

Donald Trump has now been inaugurated as President of the United States, and market participants expect his policies to drive high economic activity in the U.S., albeit with increased inflationary pressures, which could slow the pace of interest rate cuts. In Europe and China, concerns persist that Trump's policies may dampen economic growth. However, global business sentiment indicates that economic expansion will remain resilient in the coming year. In Norway, GDP growth is expected to strengthen further, reaching normal growth levels during the year before stabilizing. The first interest rate cut in Norway is likely to occur in March, with additional reductions anticipated throughout 2025.

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The office rental market experienced a slowdown in 2024 after two consecutive years of strong growth. However, due to limited new office space supply, vacancy rates have remained low and are expected to remain stable throughout 2025. Given the anticipated improvement and stabilization in the Norwegian economy, demand for office space is expected to increase, driving rental prices higher, particularly in central business districts.

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The transaction market saw a significant upturn in activity last year, and this momentum has carried into 2025 despite elevated interest rates. Current indicators suggest that transaction volumes will increase further this year. Declining credit spreads, coupled with expectations of rental price growth and future interest rate reductions, are contributing to heightened activity in the market.

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