Transactions

Transaction market activity has seen a significant rebound since 2023. Despite volatility in the interest rate market, expectations of a soft economic landing and a functioning credit market have fueled optimism entering the new year.

Recovery in the Transaction Market

Following the weakest transaction year since 2013, market activity picked up again in 2024. Total recorded transaction volume reached NOK 80 billion, marking a 37 percent increase from 2023. Transaction activity is closely linked to long-term interest rate developments, which have been characterized by high volatility over the past year. Periods of declining long-term interest rates have stimulated increased market activity. Additionally, reduced economic uncertainty has led to significantly lower risk premiums in the credit market. Throughout 2024, liquidity visibly returned to the market, and this positive sentiment has carried over into 2025.

The strong increase in transaction volume last year can partly be attributed to several large-scale transactions. A total of 18 transactions of NOK 1 billion or above were recorded, accounting for approximately half of the total transaction volume in 2024. The largest was Reitan’s acquisition of Entra’s Trondheim portfolio for NOK 6.4 billion.

Akershus Eiendom assisted as a sales advisor for Eiendomsspar in the sale of Henrik Ibsens gate 36. Photo: Knut Neerland – Magent Fotografer

Transaction volume per segment

Prime Yield

The prime yield for office properties has remained stable at 4.75 percent since Q4 2023. Further developments in prime yield will be contingent on interest rate movements and benchmark transactions in the market.

Akershus Eiendom assisted as a sales advisor for Christen Wikborg in the sale of Torggata Bad. Photo: Knut Neerland – Magent Fotografer

Development in prime yield and interest rates
Last updated 05/02/2025

Outlook

Despite rising interest rates and significant volatility, there is a slight downward pressure on yields. This trend is driven by multiple factors beyond interest rate developments. Credit spreads have approached historical levels, with potential for further tightening. Life insurance companies remain underweighted in real estate, and institutional real estate funds hold substantial capital earmarked for investment. We estimate a total transaction volume of NOK 100 billion in 2025.

Akershus Eiendom assisted as a sales advisor for Erling Storm in the sale of Stormgården at Vinderen. Photo: Knut Neerland – Magent Fotografer