Authored by the expert who managed and guided the team behind the Norway Property Pack
Everything you need to know before buying real estate is included in our Norway Property Pack
This article covers the current housing prices in Norway as of the first half of 2026, including trends, forecasts, and everything you need to understand before entering this market.
We constantly update this blog post to reflect the latest available data from official Norwegian sources like Eiendom Norge, Statistics Norway (SSB), and Norges Bank.
Whether you are an expat, an investor, or simply curious about Scandinavian property values, you will find everything broken down in simple terms here.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Norway.
Insights
- Norway's housing market grew 5% nationally in 2025, but Stavanger alone surged 14%, making regional differences more important than the national average for buyers.
- The average Norwegian home now costs around NOK 4.4 million, yet only about 1,000 new homes were completed in Oslo in 2025, creating a severe supply squeeze.
- Norges Bank held interest rates at 4% in December 2025, signaling only 1 to 2 cuts expected in 2026, which means mortgage relief will come slowly.
- Urban apartments in Norway typically sell 3% above asking price, reflecting persistent buyer competition even at current interest rate levels.
- Bergen and Tromsø outperformed Oslo in 2025 and are forecast to beat it again in 2026, with projected gains of 8.5% and 9% respectively versus Oslo's 5%.
- Norway's lending regulation caps how much buyers can borrow relative to income, which structurally limits how fast prices can surge even when demand is strong.
- First-time buyers now account for about 50% of new mortgage loans in Norway, up from 40% three years ago, signaling a generational shift in the market.
- The down payment requirement dropped from 15% to 10% as of January 2025, making homeownership more accessible for new entrants in Norway.
- Oslo is experiencing a sell-off of rental properties due to tax changes, which is temporarily increasing housing supply and moderating price growth in the capital.
- SSB forecasts Norway's housing prices to grow roughly 5% annually through 2028, implying cumulative gains of around 30% by 2030 if the trend holds.
What are the current property price trends in Norway as of 2026?
What is the average house price in Norway as of 2026?
As of early 2026, the average home price in Norway is approximately NOK 4.4 million, which translates to roughly $435,000 or €370,000 at current exchange rates.
When it comes to price per square meter, Norway averages around NOK 60,000 per sqm (about $5,900 or €5,000 per sqm), though this figure varies dramatically depending on whether you are looking at urban apartments in Oslo or detached houses in rural areas.
For most buyers, the realistic price range that covers roughly 80% of property purchases in Norway falls between NOK 2.5 million and NOK 8 million (approximately $245,000 to $785,000 or €210,000 to €670,000), with urban apartments clustering toward the lower end and family houses in popular areas reaching the upper end.
How much have property prices increased in Norway over the past 12 months?
Over the past 12 months, Norway's property prices increased by approximately 5% nationally, though this headline figure masks significant regional variation.
Depending on the property type and location, price increases in Norway ranged from about 3% in some slower markets to as high as 14% in Stavanger, which experienced the strongest growth of any major Norwegian city in 2025.
The single most significant factor driving this price movement in Norway was the combination of limited new housing supply and continued real wage growth, which allowed households to bid more aggressively even as interest rates remained elevated.
Which neighborhoods have the fastest rising property prices in Norway as of 2026?
As of early 2026, the neighborhoods with the fastest rising property prices in Norway are concentrated in Stavanger (areas like Våland, Storhaug, and Madla), Bergen (Sandviken, Nordnes, and Minde), and Tromsø (Tromsdalen and Hamna).
Annual price growth in these top-performing neighborhoods ranges from approximately 9% in Tromsø's central districts to 12% or more in Stavanger's most sought-after family areas like Hinna and Jåttåvågen.
The main demand driver behind these fast-rising neighborhoods is the combination of strong local economies, particularly in energy and technology sectors, paired with severely constrained housing supply and limited new construction.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Norway.
We have made this infographic to give you a quick and clear snapshot of the property market in Norway. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which property types are increasing faster in value in Norway as of 2026?
As of early 2026, apartments in urban areas are appreciating fastest in Norway, followed by terraced houses and small homes (rekkehus and småhus), with detached houses (enebolig) showing more mixed results depending on location.
The top-performing property type, urban apartments in supply-constrained cities like Stavanger and Bergen, is seeing annual appreciation of approximately 8% to 12%.
The main reason apartments are outperforming other property types in Norway is affordability: as interest rates remain elevated, more buyers are trading down from larger homes to apartments, which concentrates demand in this segment while supply remains tight due to low new-build completions.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
What is driving property prices up or down in Norway as of 2026?
As of early 2026, the top three factors driving property prices in Norway are the severe shortage of new housing supply (with only about 1,000 new homes completed in Oslo in 2025), continued real wage growth that improves household purchasing power, and the interest rate environment which remains restrictive but is expected to ease gradually.
Among these factors, the new-build supply shortage is exerting the strongest upward pressure on Norway's property prices, because even modest demand growth translates into price increases when there simply are not enough homes being completed to absorb buyers.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Norway here.
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What is the property price forecast for Norway in 2026?
How much are property prices expected to increase in Norway in 2026?
As of early 2026, property prices in Norway are expected to increase by approximately 6% over the course of the year.
The realistic range of forecasts from different analysts spans from about 4% on the conservative side to 8% on the optimistic side, depending on how quickly interest rates decline and whether new housing supply remains constrained.
The main assumption underlying most price increase forecasts for Norway is that Norges Bank will cut rates 1 to 2 times in 2026, gradually improving affordability while the housing supply shortage persists.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Norway.
Which neighborhoods will see the highest price growth in Norway in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Norway are in Stavanger (Våland, Storhaug, Madla, Hinna), Bergen (Sandviken, Nordnes, Årstad), and Tromsø (Tromsdalen, Hamna, Stakkevollan).
Projected price growth for these top neighborhoods ranges from about 8% in Bergen's central districts to as high as 10% to 12% in Stavanger's most competitive family-oriented areas.
The primary catalyst driving expected growth in these neighborhoods is the combination of strong local job markets, especially in energy and public sectors, paired with extremely low inventory of available homes for sale.
One emerging neighborhood in Norway that could surprise with higher-than-expected growth is Ensjø in Oslo, where ongoing urban development and improved transit connections are attracting younger buyers priced out of more established central districts.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Norway.
What property types will appreciate the most in Norway in 2026?
As of early 2026, urban apartments are expected to appreciate the most in Norway, followed by terraced and small houses in family-friendly suburbs, with detached houses showing more rate-sensitive and variable performance.
The projected appreciation for top-performing urban apartments in supply-constrained Norwegian cities like Stavanger and Bergen is approximately 8% to 10% for 2026.
The main demand trend driving appreciation for apartments in Norway is affordability pressure: as mortgage costs remain elevated, buyers increasingly choose smaller units they can afford, concentrating demand in the apartment segment where supply is already tight.
Detached houses in Norway are expected to underperform other property types in 2026 because larger mortgages make them more sensitive to interest rate levels, and potential buyers are more hesitant to commit while rates remain near their peak.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Norway versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How will interest rates affect property prices in Norway in 2026?
As of early 2026, interest rates are expected to gradually support property prices in Norway as Norges Bank signals 1 to 2 rate cuts over the course of the year, which will slowly improve buyer affordability.
The current policy rate in Norway is 4%, and average mortgage rates are expected to decline from roughly 5.5% today to about 4.5% by 2028, with markets pricing the first cut for mid-2026.
Historically, a 1% decline in mortgage rates in Norway increases buying power by roughly 10% to 12%, which typically translates into price appreciation of 3% to 5% as buyers can afford to bid higher on the same income.
You can also read our latest update about mortgage and interest rates in Norway.
What are the biggest risks for property prices in Norway in 2026?
As of early 2026, the top three biggest risks for property prices in Norway are interest rates staying higher for longer than expected, a weakening labor market that reduces household income confidence, and potential policy changes to lending regulations or property taxation.
Among these risks, the highest probability event is interest rates remaining elevated through most of 2026, given that Norges Bank has explicitly stated it is not in a hurry to cut rates and inflation remains above the 2% target.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Norway.
Is it a good time to buy a rental property in Norway in 2026?
As of early 2026, buying a rental property in Norway can be a good decision for selective, well-capitalized investors who focus on supply-constrained locations with strong job markets, but it requires more caution than in previous years.
The strongest argument in favor of buying a rental property now in Norway is the structural housing shortage: with new construction at historic lows and population growth continuing in major cities, rental demand should remain robust and support long-term returns.
The strongest argument for waiting before buying a rental property in Norway is that financing costs remain elevated and Oslo specifically is experiencing a wave of rental property sell-offs due to tax changes, which could temporarily increase supply and compress returns in some submarkets.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Norway.
You'll also find a dedicated document about this specific question in our pack about real estate in Norway.
Buying real estate in Norway can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Norway?
What is the 5-year property price forecast for Norway as of 2026?
As of early 2026, cumulative property price growth in Norway over the next 5 years is expected to be approximately 30%, assuming current trends in supply, demand, and interest rates continue.
The range of 5-year forecasts spans from about 15% to 20% in a conservative scenario where rates stay higher and economic growth disappoints, to approximately 40% or more in an optimistic scenario where rates fall faster and supply constraints persist.
This translates to a projected average annual appreciation rate of roughly 5% to 6% per year in Norway over the next 5 years.
The key assumption most forecasters rely on for their 5-year property price predictions in Norway is that interest rates will gradually decline toward 3% by 2028 while new housing construction remains well below the level needed to meet demand.
Which areas in Norway will have the best price growth over the next 5 years?
The top three areas in Norway expected to have the best price growth over the next 5 years are Stavanger and its surrounding municipalities, Bergen's inner and transit-connected neighborhoods, and selected Oslo submarkets where supply cannot keep pace with demand.
Projected 5-year cumulative price growth for these top-performing areas ranges from approximately 35% to 50%, compared to the national average of around 30%.
This outlook is consistent with our shorter-term 2026 forecast, as the same structural drivers of tight supply and strong local job markets are expected to persist, though the magnitude of outperformance may narrow slightly as other regions catch up.
One currently undervalued area in Norway with the best potential for outperformance over 5 years is Tromsø, where limited buildable land, strong institutional employment, and growing tourism create conditions for sustained demand that has not yet been fully priced in.
What property type will give the best return in Norway over 5 years as of 2026?
As of early 2026, well-located urban apartments are expected to give the best total return over 5 years in Norway, combining solid price appreciation with strong rental demand and high liquidity.
The projected 5-year total return for top-performing urban apartments in Norway, combining appreciation plus rental income, is approximately 45% to 55%, assuming current yield spreads and price growth trends continue.
The main structural trend favoring apartments over the next 5 years in Norway is the persistent undersupply of housing in major cities, combined with demographic shifts toward smaller households and continued urbanization that concentrates demand in apartment-heavy markets.
For investors seeking the best balance of return and lower risk over 5 years in Norway, family-friendly terraced houses in suburban areas with good schools and transit connections offer solid appreciation potential with less volatility than pure urban apartment plays.
How will new infrastructure projects affect property prices in Norway over 5 years?
The top three major infrastructure projects expected to impact property prices in Norway over the next 5 years are the Fornebu Metro Line extension in Oslo (connecting Majorstuen to Fornebu), the digital signaling upgrade across the national rail network, and the InterCity rail improvements connecting Oslo to regional cities like Hamar, Tønsberg, and Moss.
Properties near completed infrastructure projects in Norway typically see a price premium of 5% to 15% compared to similar properties without improved transit access, with the effect strongest for apartments within walking distance of new metro or train stations.
The specific neighborhoods that will benefit most from these infrastructure developments in Norway include Skøyen, Lysaker, and Fornebu in greater Oslo, as well as commuter towns along the InterCity corridors where reduced travel times will make them more attractive for families priced out of central areas.
How will population growth and other factors impact property values in Norway in 5 years?
Norway's population is projected to grow by approximately 1.2% to 1.3% annually, adding roughly 70,000 people per year, which will support property values particularly in urban areas where most of this growth concentrates.
The demographic shift that will have the strongest influence on property demand in Norway is the continued increase in single-person households, which now represent nearly half of all households in Oslo and are driving demand for smaller, well-located apartments.
Migration patterns, both domestic urbanization and international immigration, are expected to continue favoring Oslo, Bergen, Stavanger, and Tromsø, which will support property values in these cities while smaller towns may see more modest growth or stagnation.
The property types and areas that will benefit most from these demographic trends in Norway are urban apartments and smaller terraced homes in transit-connected neighborhoods of the four major cities, where population density is increasing and household sizes are declining.
We made this infographic to show you how property prices in Norway compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What is the 10 year property price outlook in Norway?
What is the 10-year property price prediction for Norway as of 2026?
As of early 2026, cumulative property price growth in Norway over the next 10 years is expected to be approximately 45% to 70% in nominal terms, reflecting the country's structural housing shortage and long-term economic fundamentals.
The range of 10-year forecasts spans from about 35% to 40% in a conservative scenario with higher long-term rates and weaker growth, to approximately 80% or more in an optimistic scenario where supply constraints persist and rates normalize to pre-2022 levels.
This translates to a projected average annual appreciation rate of roughly 4% to 5.5% per year over the next decade in Norway.
The biggest uncertainty factor in making 10-year property price predictions for Norway is the future trajectory of interest rates and whether the housing construction industry will recover sufficiently to close the gap between supply and demand.
What long-term economic factors will shape property prices in Norway?
The top three long-term economic factors that will shape property prices in Norway over the next decade are the interest rate regime and where mortgage rates eventually settle, the trajectory of real wage growth relative to inflation, and whether housing construction can recover to meet demand or if the supply shortage becomes structural.
Among these factors, sustained real wage growth will have the most positive long-term impact on property values in Norway, as it directly increases household purchasing power and the ability to service mortgages, supporting both prices and transaction volumes.
The single long-term economic factor that poses the greatest structural risk to property values in Norway is a scenario where interest rates remain permanently higher than the pre-2020 era, which would structurally reduce borrowing capacity and could lead to a prolonged period of price stagnation or correction.
You'll also find a much more detailed analysis in our pack about real estate in Norway.
Is buying a property in Norway a good long-term investment then?
As of early 2026, buying a property in Norway is likely a good long-term investment for most households, provided you can afford to hold through interest rate cycles and avoid maxing out your borrowing capacity.
Both official forecasters like SSB and market bodies like Eiendom Norge expect continued price growth over the coming years, not a flat or declining decade, which supports the case for ownership over renting in most scenarios.
The main caveat is that Norway's strict lending regulations and the current elevated rate environment mean buyers should build in a buffer for affordability, because the rules cap how much you can borrow and rate surprises can squeeze household budgets.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Norway, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Eiendom Norge Boligprisstatistikk | Norway's most-cited monthly housing statistics, used by banks and media nationwide. | We anchored current price levels and annual changes on their December 2025 release. We cross-checked these figures against SSB for consistency. |
| Eiendom Norge 2026 Forecast | Transparent, published forecast from a major national market body with city-level detail. | We used their 2026 national and city forecasts as one leg of our prediction range. We triangulated with SSB to build a consensus estimate. |
| Statistics Norway (SSB) Konjunkturtendensene | Official national forecasting by Norway's statistics agency with stated methodology. | We used SSB's housing price growth projections for 2026-2028 as the backbone for medium-term forecasts. We extended these for 5 and 10-year scenarios. |
| SSB House Price Index | Official hub for Norway's main housing price indexes and methodology. | We used it to confirm index trends and property-type breakdowns. We cross-referenced with transaction-based stats for validation. |
| SSB Statbank Housing Price Tables | Official catalogue of housing price index tables with standardized definitions. | We aligned our property-type groupings with Norway's standard categories. We used it as a methodological check for segment analysis. |
| Norges Bank Rate Decision December 2025 | Primary source for Norway's policy rate and the central bank's interest rate outlook. | We anchored the interest rate channel analysis on their 4% rate and guidance about future cuts. We translated this into mortgage affordability impacts. |
| Norges Bank Monetary Policy Report 4/2025 | The central bank's full macro and rate-path narrative, updated quarterly. | We used it as an independent macro lens alongside SSB for growth, inflation, and rate path. We framed risks based on their uncertainty assessments. |
| Finanstilsynet Lending Regulation | The financial regulator explaining binding mortgage and lending rules. | We used it to explain structural constraints on demand and why price booms are damped. We incorporated it into our affordability and risk analysis. |
| Norwegian Government Lending Regulation Amendments | Official publication of policy changes that directly affect mortgage borrowing. | We used it to confirm the down payment reduction from 15% to 10%. We incorporated policy intent into our demand discussion. |
| Norwegian Government National Budget 2026 | Official fiscal-policy overview and macro assumptions for Norway. | We used it to contextualize household income and employment support in 2026. We treated it as a cross-check against SSB and Norges Bank. |
| OBOS Housing Prices and Statistics | Long-running, transparent sqm-based series especially relevant for urban apartments. | We used it to anchor price per square meter with published December 2025 data. We triangulated with Eiendom Norge and SSB for validation. |
| Oslo Municipality Statistics | Official local authority source for housing stock composition and building context. | We used it to support property type distribution and explain why Oslo behaves differently. We analyzed supply constraints at the neighborhood level. |
| SSB National Population Projections | Official demographic forecasts by Norway's statistics agency. | We used population growth projections to inform demand-side forecasts. We incorporated urbanization trends into city-level analysis. |
| SSB Metropolitan Area Population Study | Detailed analysis of demographic trends in Oslo, Bergen, and Stavanger regions. | We used household formation and aging trends to project property demand by type. We identified which segments will face strongest demographic support. |
| National Transport Plan 2022-2033 | Official government infrastructure investment roadmap. | We identified major rail and metro projects that will affect property prices. We estimated infrastructure-related price premiums based on project timelines. |
| SSB Interest Rates in Banks | Official statistics on mortgage rates and lending conditions. | We used current mortgage rate data to calculate affordability impacts. We projected rate paths based on Norges Bank guidance. |
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If you want to go deeper, you can read the following: