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Everything you need to know before buying real estate is included in our Norway Property Pack
What do the latest numbers reveal about Norway’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Norway, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
How this content was created 🔎📝
1) Statistics Norway estimates a 4.4% growth in housing prices for 2025
Statistics Norway predicts a 4.4% growth in housing prices for 2025.
At the start of 2025, the equity requirement for mortgage loans was reduced from 15% to 10%. This means buyers need less money upfront to purchase a home, making it easier for more people to enter the market.
With more buyers able to purchase homes, the demand for housing increases. When demand rises, prices often follow suit, which is why housing prices are expected to climb.
Imagine more people being able to afford homes because they don't need as much cash saved up. This change is a big deal because it opens the door for many who were previously unable to buy.
As more people jump into the market, the competition for available homes heats up. This increased competition is a key factor in driving up prices.
So, with more buyers and limited housing supply, it's no surprise that prices are on the rise. This trend is expected to continue as long as demand remains strong.
Source: BT.no
2) Eiendom Norge predicts a 10% rise in housing prices across Norway in 2025
Eiendom Norge predicts a 10% increase in housing prices across Norway by 2025.
One major factor is that Norges Bank plans to cut interest rates, making it cheaper to borrow money for homes. When borrowing costs drop, more people tend to buy, which can drive prices up. Additionally, Norway is enjoying low unemployment and rising wages, giving more people the financial means to purchase homes, further boosting demand.
On the supply side, there's a shortage of new construction, meaning not enough new homes are being built to satisfy the growing demand. This limited supply, coupled with increased interest in buying, naturally pushes prices higher. The market is also seeing a surge in international buyers and local first-time buyers eager to secure properties before prices climb even more.
These factors combined create a perfect storm for rising housing prices. With more people able and willing to buy, and fewer homes available, the market is set for a significant price increase. The anticipation of future price hikes is also encouraging buyers to act quickly, adding to the demand pressure.
For those considering buying property in Norway, understanding these dynamics is crucial. The expected interest rate cuts and economic conditions are key drivers of the forecasted price increase. As the market evolves, staying informed will help potential buyers make the best decisions.
Sources: E24, Investropa
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.
3) Interest rate cuts are expected to begin in March 2025
Norges Bank plans to start cutting interest rates in March 2025.
During their December 2024 meeting, they kept the key policy rate at 4.5% but hinted that changes are on the horizon. Sentralbanksjef Ida Wolden Bache emphasized the need for a restrictive monetary policy to stabilize inflation, yet acknowledged that the time for easing is approaching.
This move aims to boost economic growth and manage inflation effectively. Analysts like Nils Kristian Knudsen from Handelsbanken believe the bank is close to implementing four rate cuts, with the first expected in March 2025.
Dane Cekov from Sparebank 1 Markets also predicts a strong chance of two rate cuts before summer, with further changes based on economic conditions. This strategy reflects a broader consensus among experts about the bank's direction.
These anticipated cuts are part of a strategy to stimulate the economy while keeping inflation in check. The central bank's approach is seen as a necessary step to balance economic growth and inflation control.
Sources: Inyheter, Aftenbladet, Trading Economics
4) Oslo has a notably limited supply of new and used homes
Oslo's real estate market is grappling with a notably limited supply of both new and used homes.
As we look towards 2025, the city is entering the year with a scarcity of available properties, according to Eiendom Norge. This shortage, combined with potential interest rate changes, is likely to push property prices higher, making it tough for buyers to find affordable options.
Eiendom Norge's forecast suggests that Oslo might see the highest price growth in the country due to this limited supply. The lack of newly completed homes is a key factor, as it restricts the market's ability to meet demand.
With fewer homes on the market, both new and used, the pressure on prices is expected to intensify. This situation is particularly challenging for those looking to buy, as the competition for available properties will likely increase.
Oslo's housing market is in a tight spot, and the limited supply is a major driver of the anticipated price hikes. Potential buyers should be prepared for a competitive and costly market in the coming years.
Sources: Eiendom Norge, Oslo Kommune
5) Property maintenance costs in Norway are expected to rise by 5% in 2025
In 2025, property maintenance costs in Norway are expected to rise by 5%.
This increase is partly due to the 2.8% rise in construction costs from 2022 to 2023, as reported by the Building Cost Index for Buildings in Norway. When construction costs go up, maintenance costs often follow because they share similar materials and labor needs.
Moreover, the Norwegian government is putting more money into infrastructure and maintenance, as seen in the Statsbudsjettet 2025. Although this doesn't directly mention property maintenance, increased government focus on maintenance can lead to higher demand and costs in the sector.
These elements together suggest that property maintenance expenses will likely keep climbing, contributing to the anticipated 5% increase in 2025.
Sources: SSB, Norden, Regjeringen
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6) The average house price in Norway was 4,498,365 NOK in November 2024
The average house price in Norway was 4,498,365 NOK as of November 2024.
Throughout 2024, house prices in Norway saw a 6.3% rise, indicating a steady upward trend. Although November showed a slight dip of 0.5%, when adjusted for seasonal changes, there was actually a 0.4% increase in prices.
Regional differences were quite noticeable. For example, Stavanger and nearby areas experienced the most significant growth, with a 1.7% increase in November 2024. Conversely, places like Bodø and Fauske saw a 1.0% decline in the same period.
The real estate market was bustling, with 95,540 homes sold by November 2024, an 8.3% jump from the previous year. In November alone, 7,256 homes changed hands, marking an 8% increase compared to November 2023.
Sources: Meglersjekk, Eiendom Norge, Trading Economics
7) Norway’s housing market saw a 6.4% price increase in 2024, exceeding initial forecasts
The Norwegian housing market wrapped up 2024 with a 6.4% price increase, outpacing initial forecasts.
This unexpected surge was largely due to Norway's favorable economic climate throughout the year. With the economy thriving, consumer confidence soared, leading to a higher demand for homes. Additionally, lower interest rates made mortgages more accessible, further fueling this demand.
Specific regions like Bergen, Stavanger, and Ålesund saw remarkable growth, with property values experiencing double-digit increases. This regional boom significantly contributed to the national average climbing higher than anticipated.
In these areas, the demand for housing was particularly intense, pushing prices up and creating a ripple effect across the country. The combination of economic stability and attractive borrowing conditions made 2024 a standout year for the housing market.
As a result, the national housing market not only met but exceeded expectations, showcasing the dynamic nature of Norway's real estate landscape. The interplay of regional growth and economic factors played a crucial role in this outcome.
Sources: Finansavisen, Hjemla
8) Norges Bank forecasts a 6.3% average housing price growth in 2025
Norges Bank predicts an average housing price growth of 6.3% in 2025.
Norway's economy is in a sweet spot, with low unemployment and high nominal wage growth in 2023 and 2024. This means more people can afford homes, which typically pushes prices up. When more people have jobs and earn more, they often look to buy homes, increasing demand.
On the supply side, there's a twist. Norges Bank notes that fewer new homes are being built due to reduced construction activity. When new homes are scarce, the demand for existing homes rises, which can lead to higher prices. It's a classic case of supply and demand at play.
Backing up this forecast, Eiendom Norge, a real estate group, is even more optimistic. They predict a 10% increase in housing prices for 2025. They see the biggest jumps happening in major cities like Oslo, Bergen, and Stavanger, where the market is particularly hot.
These cities are already popular, and with fewer new homes, the existing ones become even more valuable. It's like a game of musical chairs, but with houses. Everyone wants a seat, but there aren't enough to go around, so prices go up.
Sources: Finansavisen, E24
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.
9) Trondheim housing prices are expected to rise by 6% in 2025
In 2025, housing prices in Trondheim are expected to grow by 6%.
This forecast comes from Eiendom Norge, a respected Norwegian real estate organization. They have carefully analyzed the market trends and pinpointed this growth rate specifically for Trondheim. The city's economic environment plays a big role in this prediction.
In recent years, particularly in 2023 and 2024, Norway enjoyed low unemployment and high wages. These conditions generally mean more people can afford to buy homes, which naturally pushes prices up. It's a classic case of supply and demand at work.
Moreover, Norges Bank, Norway's central bank, has hinted at possible interest rate cuts. When interest rates drop, borrowing becomes cheaper, encouraging more people to take out loans for home purchases. This increased demand can lead to higher prices.
Trondheim, with its vibrant economy and attractive living conditions, is a hotspot for potential buyers. The combination of economic stability and favorable lending conditions makes it an appealing market.
For anyone considering buying property in Trondheim, these factors suggest a promising investment opportunity. The expected price increase reflects both local economic health and broader financial trends.
Sources: Eiendom Norge's prediction for Trondheim, Eiendom Norge's press release, Norges Bank's economic forecast
10) Oslo housing prices are expected to rise by 12% in 2025
In 2025, housing prices in Oslo are expected to grow by 12%.
One reason for this increase is the historically low level of new construction in the city. With fewer new homes being built, there's a shortage in the housing market. When there aren't enough homes to meet demand, prices naturally rise.
Another factor is that Norges Bank plans to lower interest rates. Lower rates make borrowing money for home purchases cheaper, encouraging more people to buy. This increased demand, combined with limited supply, is likely to push prices higher.
Norway's economy is also playing a role. The country is experiencing strong economic growth with low unemployment and high wage growth. This boosts the purchasing power of potential homebuyers, meaning more people can afford to buy homes, which further drives up demand and prices.
In addition, Oslo's appeal as a vibrant and growing city attracts both domestic and international buyers. The city's cultural and economic opportunities make it a desirable place to live, adding to the demand for housing.
With these factors combined, the housing market in Oslo is set for a significant price increase. Buyers should be prepared for a competitive market as demand continues to outpace supply.
Sources: Eiendom Norge's Prognosis, DNB Markets' Analysis
11) A record low number of new homes is expected to be completed in 2025
In 2025, we're facing an unprecedented low in new home completions.
This situation traces back to a noticeable decline in construction activity during 2023 and 2024. The downturn began in the summer of 2022 when new home sales plummeted to half of their peak levels. This sharp drop in sales directly impacted the number of homes being built, leading to the current scarcity.
With fewer new homes available, the supply is tight, which is a key reason for the rising property prices. Nationwide, property prices are projected to increase by 10%, with even steeper hikes expected in major cities like Oslo, Bergen, and Stavanger.
For potential buyers, this means navigating a market where limited supply is pushing prices upward. The scarcity of new homes is not just a statistic; it's a reality that affects affordability and availability.
In urban areas, the situation is even more pronounced. Cities such as Oslo are experiencing significant demand pressures, further driving up costs and competition among buyers.
Understanding these dynamics is crucial for anyone considering a property purchase in the country. The current market conditions are a direct result of past trends, and the low number of new homes is a key factor shaping the landscape.
Sources: Eiendomsmegler1, E24, Eiendom Norge
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12) By 2025, about 20% of homes in Norway will have solar panels installed
In 2023, Norway experienced a remarkable surge in solar energy, with 250 MW of solar capacity installed by September.
This growth was impressive, considering that 40% of this capacity was added just in 2022, setting the stage for more homes to adopt solar panels. The Norwegian government has set ambitious goals, aiming for 8 TWh of solar energy by 2030, which is part of a broader plan to integrate more solar power into the national energy mix, especially on urban rooftops.
These national targets have encouraged homeowners to see solar panels as a viable energy option. Reports have highlighted the substantial potential for solar energy production in Norway, suggesting that solar could surpass the combined output of water and wind power.
This potential makes solar panels an attractive choice for many residential properties, contributing to the increase in installations. By 2025, it's expected that around 20% of residential properties in Norway will have solar panels installed, reflecting this growing trend.
Sources: Energi og Klima, NHO Elektro
13) The equity requirement for homebuyers has dropped from 15% to 10%
The Norwegian government has reduced the equity requirement for homebuyers from 15% to 10%.
This change is designed to make it easier for more people to buy homes, potentially boosting the housing market and contributing to a more stable economy. However, some experts worry that this could lead to increased financial risk for households, especially if property prices drop.
Finansminister Trygve Slagsvold Vedum highlighted that the goal is to make homeownership in Norway both safe and accessible. This is particularly aimed at helping young people who have found it challenging to secure mortgages due to high equity requirements.
By lowering the equity threshold, the government hopes to open doors for first-time buyers, allowing them to step into the housing market with less financial strain. This move is part of broader efforts to ensure that more Norwegians can own homes without facing overwhelming financial barriers.
While the change is promising for potential buyers, it also raises questions about the long-term impact on the housing market and whether it might lead to increased household debt. The balance between accessibility and financial stability remains a key concern.
As the market adjusts to this new regulation, both buyers and financial institutions will need to navigate the potential risks and opportunities that come with a lower equity requirement.
Sources: Finanswatch, VG, Regjeringen
14) Bergen is expected to see an 11% rise in housing prices in 2025
In 2025, Bergen is set to experience an 11% increase in housing prices.
One of the main reasons for this is a prediction by Eiendom Norge, a leading real estate company in Norway, which forecasts a 10% rise in housing prices for Bergen. This is due to a combination of factors such as a low number of new homes being built, fluctuating interest rates, and a robust local economy. These conditions mean that while demand for housing remains high, the supply is limited, naturally driving prices up.
Bergen's housing market has historically been strong, showing consistent price growth over the years. According to an article from Bergens Tidende, Bergen has experienced the highest price growth in the country, a trend that is expected to persist. Experts like Tom Jørgensen from PrivatMegleren highlight that the market now favors sellers, with strong demand and limited supply further pushing prices upward.
Regional projections from Eiendom Norge suggest an 11% increase for Bergen, which is slightly above the national average. This indicates that Bergen's market conditions are particularly conducive to price growth.
For potential buyers, this means that investing in Bergen's real estate could be a wise decision, given the favorable market conditions and the expected price increase. The combination of limited supply and high demand creates a competitive environment, making it an attractive market for sellers.
As Bergen continues to thrive economically, the housing market is likely to remain strong, with ongoing price growth anticipated. This makes it an appealing option for those looking to invest in property in the region.
Sources: Bergens Tidende, Eiendom Norge
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.
15) Housing prices in Western and South-Western Norway are expected to rise by over 10% in 2025
In 2025, housing prices in Western and South-Western Norway are expected to rise by over 10%.
Experts, including those from Eiendom Norge, have observed a strong upward trend in these areas. For example, Bergen saw a 12.5% price increase in 2024, setting a precedent for further growth. Ålesund and nearby regions are also likely to experience similar trends.
Norges Bank's anticipated rent cuts play a significant role here. With lower interest rates, borrowing becomes cheaper, encouraging more home purchases and driving prices up. Norway's strong economy and low unemployment further fuel this demand, pushing prices even higher.
The Norwegian real estate market's stability and high living standards make it appealing to both local and international investors. This interest adds to the demand, supporting the expected price increases.
Sources: Dagbladet, Eiendom Norge, Aftenposten
16) A housing crisis is developing due to a sharp decline in new housing construction
The housing market in Norway is facing a crisis due to a sharp decline in new housing construction.
Fewer new homes are being completed, which is expected to push housing prices up by 10% across the country. In Oslo, the situation is even more intense, with strong demand and limited supply driving prices higher.
Since 2022, the sale of new homes has been weak, leading to a continued slump in construction activity. This slowdown is not just a temporary blip; it's part of a larger trend.
The Norwegian Statistical Office has forecasted a 9% drop in housing investments, which further exacerbates the issue. This decline in investment is a clear indicator of the challenges facing the housing market.
With fewer homes being built and investments dwindling, the pressure on the housing market is mounting. The lack of new construction is a key factor in the emerging crisis.
Sources: Eiendom Norge, Norden
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.