All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Bergen's property market is included in our pack
Considering buying a nice property in Bergen? You're not alone!
Many people are captivated by Bergen's scenic landscapes and dream of owning a cozy cottage or a contemporary apartment in this city.
Still, would it be a smart investment? Are property prices increasing in Bergen? Is it expensive? Is it better to invest in the city center or Bryggen? Is there any hidden tax? What yields can I expect?
We have all the answers you need.
The Investropa team has thoroughly explored this market. As a matter of fact, we've compiled all our findings in one pack. Get it now.
In the lines below, we'll share useful information and some practical tips.
How's the property market in Bergen?
Is the property market thriving or struggling? We'll find the answers through data analysis.
Types of properties
In Bergen, you can find various types of properties for sale, including apartments, houses, townhouses, and condos.
These properties come in different sizes and styles, ranging from cozy one-bedroom apartments to spacious family homes.
Some may have modern amenities like updated kitchens and bathrooms, while others might offer traditional charm with unique architectural features.
Whether you're looking for a compact urban dwelling or a larger suburban residence, Bergen's real estate market offers a diverse selection to suit different preferences and lifestyles.
Should you buy or rent?
(If you're buying for yourself and not to rent out)
If Bergen has captured your heart as your city of choice, you might be considering whether it's better to buy a property or opt for renting in this picturesque Norwegian city.
Obviously, it's better to buy if you are looking to build equity and secure long-term financial stability.
To make a good decision, consider the property price-to-rent ratio. You can think of it as the time it takes for rental income to equal the property's current purchase price.
According to Numbeo, the property price-to-rent ratio in Bergen is around 25.65, which is above the world average.
This value means that, on average, it would take you 26 years of paying rents to afford buying a property in Bergen.
Housing prices in Bergen
On average, according to the last data from Eiendom Norge/Real Estate Norway, purchasing a property in Bergen will cost you around $5,900 per square meter.
Naturally, prices are quite spread out. The value of a square meter for a waterfront property in Bergen might differ from a cozy cabin in the mountains. We actually offer a more in-depth analysis in our pack for buying property in Bergen and in Norway.
To give you a better idea, it is 3.2 times less than the property prices in the center of New York.
Also, housing prices in Bergen are 32% cheaper than in Oslo.
The most expensive neighbourhoods in Bergen are probably Fana, Ytrebygda, and Åsane, while the cheapest are Fyllingsdalen, Laksevåg, and Årstad.
Trends
First and foremost, we have to acknowledge that Norway is, today, an incredibly stable country. The last Fragile State Index that has been reported for this place is 15.6.
Keep this in view when pondering the viability of buying a property in in Bergen.
On the longer term, the growth will still be there since Norway's economy is expected to soar by 9.3% in the coming 5 years, resulting in an average GDP growth rate of 1.9%.
If you intend to invest in real estate in Bergen it's a good thing because a growing economy (usually) leads to higher incomes for citizens, enabling them to invest in real estate, which boosts demand and prices for properties.
Also, in Norway, the average GDP per capita has changed by 4.3% over the last 5 years. It's not much, but the growth is here.
These are cues signaling that property prices in Bergen might go up in 2024 and during the coming years.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Norway right now.
Buying property in Bergen
Buying real estate in Bergen can be challenging due to the difficulty of obtaining reliable and up-to-date information. That's why we have created the pack to buy property in Bergen and in Norway.
Buying process
In our pack, we've explained the entire process of buying properties in a detailed way. We've pointed out the mistakes to steer clear of, shared tips for finding properties that give you the best returns, and provided information about taxes and necessary documents.
Now, we're giving you a simplified version of the buying process.
This is the step-by-step process to purchase a property in Bergen:
- Determine budget and preferences.
- Engage a Norwegian real estate agent familiar with Bergen's market.
- Search for suitable properties on websites like Finn.no or through the agent.
- Conduct property inspections, keeping in mind Bergen's unique climate and landscape challenges.
- Research property history, including proof of ownership (Grunnbok) and encumbrances (Pantedokument).
- Secure financing and obtain a "Boliglån" (home loan) from a Norwegian bank.
- Make an offer through the agent, using a standard "Kjøpetilbud" form.
- Negotiate terms and price, considering local market trends and regulations.
- Sign a binding purchase contract (Kjøpekontrakt) prepared by a Norwegian lawyer.
- Pay a deposit, typically 10% of the property's value, into a designated escrow account.
- Complete property surveys and inspections, like "Tilstandsrapport" and "Takseringsrapport."
- Finalize the transaction at the closing (Overtakelse), pay the remaining balance, and register the property with the "Statens Kartverk."
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Norway.
Make a profitable investment in Bergen
Better information leads to better decisions. Save time and money. Download our guide.
Where to find a property
Find properties in Bergen using these websites:
- RE/MAX - A reputable real estate company operating in various regions across Europe, offering services for property buyers and sellers.
- Trulia - Providing neighborhood insights and real reviews to help you find the perfect home and community for your lifestyle.
- Realtor - Offering a comprehensive list of for-sale properties and empowering home shoppers with valuable tools and resources.
- Geoln - An international real estate search engine connecting buyers and developers with verified properties worldwide.
- Norwegian Property - A fully integrated commercial real estate company in Norway, specializing in property development and creating engaging meeting places.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Norway.
What you can get
As mentioned before, the average price per sqm in Bergen is $5,900. A 1-bedroom property with 60 square meters would cost approximately $354,000, and a 2-bedroom with 85 square meters would cost approximately $502,000.
However, prices will differ based on the attributes of the property and its specific location.
High-end property spots in Bergen usually have higher prices. In Sentrum, a house might cost around $1,120,000, while a residence in Sandviken could be priced at $1,330,000.
On the other hand, certain areas are friendlier to your budget. You may find a condominium in Loddefjord for $190,000, or you might locate one in Åsane priced only at $160,000.
We give more details about property types and areas in our full pack for buying property in Norway.
Mistakes to avoid
Here are the main pitfalls specific to buying a property in Bergen, Norway:
- Strict building regulations and historical preservation laws may limit property modifications.
- High property prices due to limited land availability and high demand in a picturesque city.
- Winter darkness and extreme weather can affect property condition and accessibility.
- Consideration of avalanche and landslide risks, especially for properties in hilly or mountainous areas.
- Cultural differences and language barriers can complicate negotiations and paperwork for international buyers.
- Potential issues with underground oil tanks, common in older properties, may require costly removal.
- Additional costs for winter-proofing properties, such as insulation and heating systems.
- Property-specific flood risks due to the city's coastal location and proximity to fjords and rivers.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Norway Property Pack
Living in Bergen
Living in Bergen is an idyllic experience, with its stunning natural surroundings, vibrant cultural scene, and endless opportunities for outdoor activities.
Cost of living
The cost of living in Bergen is generally considered to be high compared to other cities in Norway. Prices for groceries, rent, and other expenses are all higher than the national average.
Here are some examples to better understand the cost of living in Bergen, Norway:
- A cup of traditional Norwegian coffee (kaffe) at a local café: $4-$6.
- Rent for a one-bedroom apartment in the charming Bryggen neighborhood: $1,500-$2,500 per month.
- Monthly Skyss public transportation pass for buses and light rail: $80-$120.
- A bottle of Norwegian mineral water (e.g., Olden) at a grocery store: $2-$3.
- Utilities (electricity, heating, cooling) for an 85m² apartment in Bergen: $120-$180.
- A serving of traditional Norwegian fish soup (fiskesuppe) at a restaurant: $15-$20.
- Entrance fee to the Bergenhus Fortress, a historic landmark: $10-$15.
- Health insurance coverage for a family of four: $300-$500 per month.
Neighbourhoods
Since our intention is to provide information in a clear and reader-friendly way, we've created a summary table outlining the various neighborhoods in Bergen. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Bryggen | Bryggen is a UNESCO World Heritage site with colorful wooden houses and a historic Hanseatic wharf. It's a popular tourist attraction and offers charming waterfront views. | Historical significance, picturesque scenery, popular with tourists. | Can be crowded, limited parking options. |
Nygård | Nygård is a vibrant neighborhood with cultural institutions like the University of Bergen and art galleries. It's known for its youthful atmosphere and lively streets. | Home to the University, diverse cultural scene, lively streets. | Noisy at times, high student population can lead to occasional disturbances. |
Fana | Fana is a peaceful suburban area with a mix of residential and green spaces. It offers a quieter lifestyle and easy access to nature. | Tranquil surroundings, proximity to nature, family-friendly. | Limited public transport options, fewer entertainment venues. |
Sentrum | Sentrum is the heart of Bergen, with shopping streets, restaurants, and cultural landmarks like Bergenhus Fortress. It's a lively and convenient place to live. | Central location, excellent amenities, rich cultural heritage. | Higher cost of living, can be noisy and crowded. |
Sandviken | Sandviken is a picturesque neighborhood with traditional wooden houses and views of the harbor. It's a peaceful area with a maritime feel. | Scenic views, maritime atmosphere, close to hiking trails. | Limited public transport, steep hills in some areas. |
Årstad | Årstad is a residential area with a mix of housing types and green spaces. It's a family-friendly neighborhood with schools and parks. | Family-oriented, green areas, schools and amenities. | Not as many restaurants and entertainment options. |
Ytrebygda | Ytrebygda is a modern suburban area with residential developments and shopping centers. It's well-connected to the airport. | Proximity to the airport, modern housing, shopping options. | Less historical charm, can feel distant from city center. |
Laksevåg | Laksevåg is a diverse neighborhood with a mix of industrial areas and residential communities. It has a rich maritime history. | Maritime history, cultural diversity, affordable housing. | Industrial zones, limited green spaces. |
Fyllingsdalen | Fyllingsdalen is a suburb with a range of housing options and shopping centers. It offers a peaceful living environment. | Peaceful surroundings, shopping convenience, good schools. | Longer commute to city center, limited nightlife. |
Life in Bergen
The economy of Bergen is dominated by the service sector, which accounts for almost 80% of the city's total GDP. The city is also home to a number of large international companies, such as Statoil, Kværner, and Norsk Hydro, which are major contributors to the local economy.
What expats usually like the most about Bergen is its stunning natural scenery, with the nearby fjords, mountains, and waterfalls, as well as its unique cultural attractions, such as the Bryggen Hanseatic Wharf and the Fish Market.
Regarding safety, the crime rate of Bergen is around 25, which is a very impressive score. Bergen has a culture of respect and trust which has helped to create an environment of safety and security, resulting in almost no crime.
A good point for a property investor - Bergen has a light rail system called Bybanen, which connects the city center to the surrounding suburbs.
The access to healthcare in Bergen is generally good, with a range of public and private services available.
Finally, it is worth noting that the University of Bergen ranks among the top 250 universities in the world.
Don't lose money on your property in Bergen
100% of people who have lost money in Norway have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Renting out in Bergen
This section is for those who are looking to purchase a property not to live in themselves, but to rent it out and make an income from the rental.
Long-term
Tenant Profiles in Bergen
According to the data reported by Wikipedia, the home ownership rate in Norway is 80%, which is rather high.
It is probably a bit less in Bergen though.
If you decide to buy and rent out to long-term tenants, you should target young professionals, students, and families looking to settle down in the area. Bergen is also a popular tourist destination, so you could consider offering short-term rentals to visitors as well.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in Sentrum | Professionals, students | City center, amenities | $1,200 - $2,500 |
House in Nordnes | Families, artists | Quaint neighborhood, sea views | $2,000 - $3,800 |
Apartment in Fantoft | Students, young professionals | Proximity to university, quiet | $1,000 - $2,000 |
Studio in Årstad | Single professionals, couples | Suburban feel, green spaces | $1,100 - $1,800 |
Apartment in Laksevåg | Working-class families | Affordable housing, amenities | $900 - $1,600 |
House in Fyllingsdalen | Families, commuters | Quiet suburb, schools | $1,800 - $3,000 |
Apartment in Ytre Sandviken | Young professionals, couples | Scenic area, waterfront | $1,500 - $2,800 |
Rental yields
As of today, rental yields in Bergen are within the 3-4% range. It's low. A good rental yield generally falls within the range of 7% or more.
Bergen's best rental yields are generally found in properties located in central areas such as the city center and the Bryggen area, due to the higher demand for rental properties in these areas. Additionally, properties located near universities and public transport hubs tend to have higher rental yields as they are more attractive to tenants.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Finally, be aware that rental incomes in Bergen are taxed at 22%, which is not bad.
Short-term
You could also decide to rent short-term to tourists visiting Bergen, or to students studying at the University of Bergen.
If you decide to go with that option, look for properties in the city center, such as Nygård, Strandgaten, and Torgallmenningen, or in the popular tourist areas of Bryggen and Fløyen.
Currently, there are approximately 1,810 active Airbnb listings in Bergen, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $138.
You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Bergen can make around $2000 per month. Also, the average occupancy rate is estimated at 77%.
Is it worth buying real estate in Bergen then?
Buying a property in Bergen, Norway, can be a fantastic decision for those who plan to establish a long-term residence, have stable finances, and seek potential investment opportunities.
Bergen's stunning natural beauty and rich cultural offerings make it an attractive place to live, and owning a property can provide stability and potentially save money over time compared to renting.
Moreover, with historically low interest rates and the potential for property appreciation, it can be a smart financial move. However, thorough research into Bergen's real estate market, tax regulations, and local conditions is essential to ensure a successful purchase.
On the other hand, buying in Bergen may not be suitable for those planning a short-term stay, facing high property prices or uncertain market conditions, or seeking a maintenance-free lifestyle.
If your stay in Bergen is temporary or you're unsure about your long-term plans, renting may offer greater flexibility. Additionally, if property prices are in a bubble or exceptionally high, it might not be the right time to buy unless you have a solid investment strategy in place.
Ultimately, the decision to buy a property in Bergen should align with your unique circumstances and goals, and it's crucial to carefully assess the market, seek professional advice, and consider your financial readiness before taking the plunge.
Make sure you understand the real estate market in Bergen
Don't rush into buying the wrong property in Norway. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.