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What will happen in Norway’s real estate market? Will prices go up or down? Is Oslo still a hotspot for foreign investors? How is Norway’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with real estate agents, property developers, and clients who buy properties in Norway, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) More foreign investors will enter Norway’s residential market due to its political stability
Norway's political stability is a magnet for foreign investors eyeing its residential market.
With strong property rights and an effective legal system, Norway offers a secure investment environment. This is evident in its high ranking on the 2023 Corruption Perception Index, where it placed 8th out of 133 countries. Such rankings highlight the country's commitment to transparency and fairness, making it an attractive destination for those looking to invest in real estate.
Real estate agents in Norway have noticed a surge in interest from foreign buyers. This growing curiosity suggests that investors are eager to tap into Norway's stable and promising market. The presence of international real estate firms expanding their operations in Norway further underscores the country's appeal.
Foreign investors are increasingly diversifying their portfolios with Norwegian properties. This move reflects their confidence in Norway's stability and growth potential. Despite global economic fluctuations, foreign direct investment in Norway's real estate sector continues to rise, showcasing the country's resilience and attractiveness.
Norway's political and business environment is not just stable but also ripe for growth. The country's ability to maintain a steady course amidst global uncertainties makes it a preferred choice for investors. This stability is a key reason why foreign investors are keen to explore opportunities in the Norwegian real estate market.
As more international firms set up shop in Norway, the country's real estate market is poised for further growth. This trend is a clear indicator of the confidence that foreign investors have in Norway's political and economic landscape.
Sources: UK Government, CBRE, Stanbic Bank, eSales International
2) Rural property yields will drop as more people move to cities for jobs
Yields in rural areas are expected to decline as more people flock to cities for jobs.
In Norway, this shift is quite noticeable. The net migration rate in 2024 was 5.018 per 1,000 people, showing a clear move from the countryside to urban areas. Oslo, in particular, is a magnet for newcomers, with projections indicating an influx of 5,100 people annually until 2030. This is largely due to the abundance of job opportunities and the vibrant city life.
As people gravitate towards cities, the housing market in places like Oslo is booming. Average house prices per square meter hit NOK 89,100 in March 2024, a testament to the city's allure. This trend underscores the growing preference for urban living over rural life, as city areas have seen more significant price hikes compared to their rural counterparts over the past decade.
For those considering buying property in Norway, it's essential to understand these dynamics. Urban centers like Oslo not only offer diverse job opportunities but also a bustling lifestyle that continues to attract more residents. This centralization is reshaping the housing market, making city properties a hot commodity.
While rural areas offer tranquility and space, the pull of urban centers is hard to ignore. The promise of employment and a vibrant community life in cities is drawing people away from the countryside, impacting rural yields and property values.
As the population continues to grow, especially in urban municipalities, the demand for housing and jobs will likely keep rising. This ongoing trend suggests that investing in urban properties could be a wise decision for those looking to capitalize on the current market dynamics.
Sources: Macrotrends, Aparthotel, Statistics Norway
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.
3) Norwegian real estate investors will change strategies due to new property tax laws
In 2025, Norway's property tax laws are changing, and this is expected to shake up how real estate investors approach their strategies.
One big change is the increase in the tax exemption card threshold from NOK 70,000 to NOK 100,000. This means people with low to medium incomes might find certain properties more appealing, as they can benefit from these tax breaks. It's a move that could make buying property more attractive for a wider range of buyers.
There's also a tweak in the wealth tax, particularly for married couples, with an increase in the basic deduction and the threshold for step 2. This could change how much it costs to hold wealth in real estate, nudging investors to rethink their portfolios. They might start looking for properties that offer better tax benefits, especially with the backdrop of rising interest rates and increased bank margins that are making borrowing more expensive, as noted in the CBRE Market Outlook for Norway in 2024.
The government is also talking about net tax reductions of about NOK 5.5 billion once these changes are fully in place. This could mean less revenue from property taxes, prompting investors to reassess their strategies. They might start considering the broader economic picture and how these tax changes could make the market more appealing.
As the Norway Real Estate Market is expected to grow, these tax changes could make it even more attractive for investors. They might start hunting for opportunities in a market that's becoming more enticing due to these shifts. It's a time of change, and those in the know are already adjusting their plans.
Sources: Magnus Legal, CBRE, Regjeringen
4) Building costs will rise due to stricter environmental rules, affecting property prices
Stricter environmental regulations are making it more expensive to build new homes, which is affecting property prices.
In Norway, the construction industry has been hit hard, shrinking by 2.1% in 2023 and 3% in 2024. This downturn is largely due to rising construction costs and other economic challenges. The construction cost index for residential buildings jumped by 4.9% in the first nine months of 2023, mainly because of higher labor and material costs.
These costs are climbing partly because builders need to meet new environmental standards. For instance, Oslo has introduced tough decarbonization rules, pushing developers to use pricier eco-friendly materials and technologies like carbon capture and storage. While these measures are great for the planet, they do add to the construction bill.
In Oslo, developers are now opting for more sustainable building practices, which, although beneficial, are not cheap. The use of advanced technologies and materials is becoming a norm, but it comes with a price tag. This shift is a direct result of the city's commitment to reducing carbon emissions, which is a priority for many urban areas.
As a potential property buyer, it's important to understand that these changes in construction practices are not just a trend but a new standard. The increased costs are being passed down to buyers, affecting property prices. This is something to keep in mind when considering a purchase in areas with strict environmental regulations.
While these regulations are essential for sustainable development, they do have a financial impact. The balance between environmental responsibility and affordability is a challenge that the industry is currently navigating. This dynamic is shaping the future of property markets, especially in regions like Norway.
Sources: Business Wire, Constructive Voices, Statista
5) Demand for senior-friendly housing in Norway will grow as the population ages
In Norway, people are living longer than ever, with life expectancy reaching impressive heights.
As of 2022, Norwegians can expect to live to about 82.6 years on average, one of the highest in Europe. This means more folks are reaching their golden years, and they'll need homes that suit their changing needs.
The number of people aged 65 and over is on the rise, and in the next two decades, 250,000 more Norwegians will be over 80. This shift will naturally boost the demand for senior-friendly housing, focusing on accessibility and safety.
Many older Norwegians prefer to stay put as they age, a trend known as "aging in place." This is partly because they enjoy better health in their later years compared to the EU average, making it feasible to remain in their homes longer.
With this preference, there's a growing need for homes that can adapt to seniors' evolving requirements. Features like step-free access, wider doorways, and smart home technology are becoming more important.
As the population ages, the demand for senior-friendly housing options will only increase, making it a crucial consideration for anyone looking to invest in Norwegian real estate.
Sources: OECD Health Profile, UNECE National Report on Ageing, Norwegian Science and Technology News
Don't buy the wrong property, in the wrong area of Norway
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
6) Demand for large family homes will drop as people choose smaller, efficient spaces
In Norway, more people are opting for smaller, efficient living spaces over large family homes.
Urbanization is a big driver of this change. With Norway's Zero-Growth Goal, the focus is on reducing car traffic and boosting public transport, cycling, and walking in cities. This push for smarter, greener cities means people prefer living closer to amenities and public transport, making compact spaces more attractive.
Rising property prices also play a part. While house prices jumped by 7.6% in 2024, they're only expected to rise by 5% in 2025. This makes smaller homes a more affordable choice for buyers. Plus, the minimalist lifestyle trend is catching on, with more people valuing experiences over material possessions, leading them to choose efficient living spaces.
Smart home technology is another factor. These advancements make smaller homes more comfortable and efficient, appealing to many. The construction of compact and modular homes is on the rise, reflecting this demand. In September 2024, there was an 11.7% increase in sales of smaller properties compared to the same month in 2023, showing a clear preference for smaller homes.
As cities grow denser, the demand for large homes naturally decreases. People are drawn to the convenience and efficiency of smaller spaces, especially when they offer modern amenities and are located in vibrant urban areas. This shift is not just about cost but also about lifestyle choices and environmental considerations.
In essence, the trend towards smaller homes in Norway is a mix of economic, cultural, and technological factors. It's about finding a balance between affordability, convenience, and a desire for a more sustainable way of living. As more people embrace this lifestyle, the demand for large family homes is likely to continue its decline.
Sources: OECD, FIEC Statistical Report, Eiendom Norge
From this video, we realize that smaller, efficient apartments in Oslo reflect a shift in demand away from larger family homes.
7) Interest in Norway’s luxury real estate will grow among foreign buyers because of its stability
Foreign buyers are increasingly eyeing Norway's luxury real estate market for its stability.
With the market size valued at USD 64.8 million in 2023, it's expected to grow to USD 84.7 million by 2030. This growth reflects a rising interest, especially from international investors who are drawn to Norway's stable environment. The country's real estate market is seen as a safe haven amidst global economic uncertainties.
Norway's economy is a beacon of stability, with a slight growth forecast from 0.7% in 2023 to 1.4% in 2025. This is supported by a strong fiscal framework and the Government Pension Fund Global, which is one of the largest sovereign wealth funds in the world. Such economic resilience makes Norway an attractive option for those looking to invest in real estate.
Scandinavian countries, including Norway, are often favored by foreign buyers due to their strong economies and high quality of life. Norway, in particular, offers a unique blend of natural beauty and urban sophistication, making it a desirable location for luxury property investments.
Political stability is another key factor that enhances Norway's appeal. The country is known for its transparent governance and low corruption levels, which provide a secure environment for property investments. This political climate, combined with economic strength, makes Norway a top choice for foreign investors.
As global economic uncertainty continues, more investors are likely to turn to Norway's real estate market. The country's reputation for stability and growth potential makes it a compelling option for those seeking to diversify their investment portfolios.
8) Demand for properties in Hemsedal will rise as winter tourism grows
The demand for properties in ski resort areas like Hemsedal is on the rise as winter tourism booms.
In Norway and nearby regions, winter tourism has been climbing steadily. Take Tromsø, for example, which saw a 126% jump in international flight passengers in January 2024 compared to the previous year. This surge is fueled by tourists eager to snap selfies against the breathtaking Arctic scenery.
Ski resorts are also seeing record numbers of visitors. On December 30, 2023, SkiStar Hemsedal hit a record with over 7,500 ski visitors in a single day. This isn't just a Hemsedal phenomenon; places like SkiStar Åre and SkiStar Sälen are experiencing similar spikes in visitor numbers.
International tourists are flocking to Norwegian ski areas more than ever. Tromsø now has direct flights from 20 European cities, making it easier for international travelers to visit. This increased accessibility is likely to drive interest in nearby properties as tourists look for convenient places to stay.
With more tourists comes a greater demand for accommodations, and Hemsedal is perfectly positioned to benefit. The area's stunning landscapes and top-notch ski facilities make it a prime spot for those looking to invest in property.
As winter tourism continues to grow, the appeal of owning property in ski resorts like Hemsedal is becoming more attractive. Whether it's for personal use or as a rental investment, the potential is clear.
Sources: The Barents Observer, MyNewsDesk
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Norway. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) New homes in Norway will commonly include smart home technology as a standard feature
In Norway, smart home technology is becoming increasingly popular.
By 2030, the market for these devices is expected to grow from USD 402.7 million to USD 1914.7 million, showing a strong trend towards integrating smart tech into homes. This growth is driven by a 24.9% annual increase from 2024 to 2030, reflecting a significant shift in how Norwegians are choosing to live.
With 84% of Norwegians living in urban areas, there's a big push for homes that are not only smart but also energy-efficient and sustainable. People are looking for ways to save energy and enhance security, and smart home technology offers solutions like video analytics and remote monitoring to meet these needs.
The Norwegian government is also encouraging this shift through initiatives like the Strømstøtte Funding Program. This program, introduced in 2023, provides subsidies for electricity, making smart home devices more affordable and appealing to consumers. It's a clever way to support the adoption of smart technology in homes.
These incentives are making it easier for people to embrace smart home technology, which is becoming a standard feature in new residential developments. As more people see the benefits, the demand for these technologies is only expected to grow.
Sources: Statista, Ampeco, NextMSC
10) Virtual reality will transform home viewings, allowing buyers to explore properties remotely more easily
Virtual reality is changing how we view properties, making it easier for buyers to explore homes remotely.
In Norway, companies like Viscan are leading the way with Matterport 3D virtual tours, allowing potential buyers to walk through properties anytime, anywhere. These tours are not just convenient; they offer a professional quality that has been proven effective, as seen with Viscan's work on Akershave Apartments. This means you can explore a property in Oslo while sipping coffee in your living room in New York.
Buyers are loving this new way of viewing homes. Surveys show that people prefer remote property viewing, and VR tours give them the confidence to make decisions without stepping foot inside the property. This opens up the market to international buyers, making it easier for someone in Tokyo to invest in a charming cottage in the English countryside.
Thanks to technological advancements, VR is now more accessible and affordable. Tools like Matterport scanners offer 99% accuracy in mapping property interiors, which means you can measure dimensions and even plan renovations from afar. Norway's high internet penetration and digital literacy make it a perfect place for VR real estate to thrive.
People who've used VR for property sales rave about the immersive experience. They love being able to explore homes as if they were there in person, which has led to increased online property searches. Imagine checking out a dozen homes in a day without leaving your couch.
VR isn't just about convenience; it's also about efficiency. It reduces the time and cost of property transactions by giving real estate agents insights into what buyers want. This means more targeted marketing and quicker sales. Partnerships between tech companies and real estate firms ensure that VR solutions remain top-notch and affordable.
Sources: Viscan, Encora, WDCSTechnology
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.