What are the best areas for real estate in Norway? (January 2026)

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

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INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Norway. If you’d like to learn more about us, you can check our presentation page.

What's the Current Real Estate Market Situation by Area in Norway?

Which areas in Norway have the highest property prices per square meter in 2026?

As of early 2026, the three most expensive areas in Norway are Frogner (including Bygdøy and Skillebekk) in Oslo, the Bispevika waterfront in Bjørvika, and Aker Brygge/Tjuvholmen along the Oslo fjord.

In these premium Oslo neighborhoods, prices typically range from 110,000 to 132,000 NOK per square meter, with exceptional waterfront penthouses sometimes exceeding 200,000 NOK per square meter.

Each of these areas commands high prices for different reasons:

• Frogner and Bygdøy: historic architecture, embassy district, and proximity to international schools.
• Bispevika and Bjørvika: brand-new waterfront construction, Opera House views, and modern amenities.
• Aker Brygge and Tjuvholmen: fjord-front luxury, high-end dining, and corporate headquarters nearby.

Which areas in Norway have the most affordable property prices in 2026?

As of early 2026, the most affordable areas in Norway for property buyers are Søndre Nordstrand (including Holmlia and Mortensrud), Stovner (including Haugenstua), Alna (including Furuset and Ellingsrud), and Grorud in Oslo's outer east.

In these Oslo districts, prices typically range from 53,000 to 70,000 NOK per square meter, which is roughly half of what you would pay in central Oslo neighborhoods.

The main trade-offs in these areas are longer commute times to the city center (typically 25 to 40 minutes by metro), fewer upscale amenities, and a different demographic profile with more families and fewer young professionals compared to inner-city neighborhoods.

You can also read our latest analysis regarding housing prices in Norway.

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.

Which Areas in Norway Offer the Best Rental Yields?

Which neighborhoods in Norway have the highest gross rental yields in 2026?

As of early 2026, the neighborhoods in Norway with the highest gross rental yields are Søndre Nordstrand (around 5.0% to 5.6%), Stovner (around 4.8% to 5.4%), Alna districts like Furuset (around 4.7% to 5.5%), and student corridors near NTNU in Trondheim (around 4.5% to 5.2%).

Across Norway as a whole, typical gross rental yields range from 2.5% in Oslo's prime waterfront areas to around 5.5% in outer urban districts, with most properties falling somewhere between 3.5% and 4.5%.

These top-yielding neighborhoods deliver higher returns for specific reasons:

• Søndre Nordstrand: low entry prices combined with stable family renter demand.
• Stovner: affordable purchase prices and good metro access to central Oslo.
• Alna (Furuset, Ellingsrud): strong demand from families priced out of central areas.
• Trondheim near NTNU: constant student demand creates low vacancy rates year-round.

Finally, please note that we cover the rental yields in Norway here.

Which Areas in Norway Are Best for Short-Term Vacation Rentals?

Which neighborhoods in Norway perform best on Airbnb in 2026?

As of early 2026, the top-performing Airbnb neighborhoods in Norway are Tromsø Sentrum (around 63% occupancy, 2,100 NOK average nightly rate), Bergen Bergenhus near Bryggen (around 61% occupancy, 1,600 NOK average nightly rate), central Stavanger (around 53% occupancy, 1,500 NOK average nightly rate), and Oslo Grünerløkka (strong demand but more regulatory constraints).

In these high-performing areas, top Airbnb properties in Norway can generate between 12,000 and 16,000 NOK per month on average, with exceptional listings in Tromsø earning over 20,000 NOK monthly during Northern Lights season.

Each area outperforms for different reasons:

• Tromsø Sentrum: Northern Lights tourism drives winter bookings and premium rates.
• Bergen Bergenhus: UNESCO Bryggen waterfront draws year-round international visitors.
• Stavanger central: cruise ships and oil industry visitors create steady demand.
• Oslo Grünerløkka: trendy cafes and nightlife attract younger tourists seeking local experiences.

By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Norway.

Which tourist areas in Norway are becoming oversaturated with short-term rentals?

The three tourist areas in Norway showing signs of oversaturation are Bergen's Nordnes and Bergenhus districts, Tromsø's central Tromsøya island, and parts of Oslo's Sentrum near the main train station.

In Bergen's central neighborhoods alone, there are now over 3,100 active short-term rental listings, while Tromsø has approximately 2,600 active listings despite its smaller population, creating visible density in the historic core.

The clearest sign of oversaturation in these areas is not just listing counts but the growing political enforcement activity, with Bergen municipality actively investigating dozens of cases of illegal short-term rentals and residents organizing complaints about "shadow hotels" disrupting residential buildings.

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 Areas in Norway Are Best for Long-Term Rentals?

Which neighborhoods in Norway have the strongest demand for long-term tenants?

The neighborhoods in Norway with the strongest demand for long-term tenants are Gamle Oslo (especially Ensjø, Kampen, and Vålerenga), Grünerløkka and St. Hanshaugen in Oslo, Moholt and Singsaker near NTNU in Trondheim, and Bergenhus in Bergen.

In these high-demand neighborhoods, vacancy rates typically hover between 1% and 3%, and well-priced apartments often rent within 7 to 14 days of being listed, especially during the August peak season.

Different tenant profiles drive demand in each area:

• Gamle Oslo (Ensjø, Kampen): young professionals and couples seeking walkable urban living.
• Grünerløkka and St. Hanshaugen: creative workers and expats attracted by cafes and nightlife.
• Trondheim (Moholt, Singsaker): university students and researchers at NTNU and nearby institutions.
• Bergen Bergenhus: professionals working in the city center and maritime industries.

What makes these neighborhoods especially attractive to long-term tenants in Norway is their combination of excellent public transit (metro or tram stops within 5 to 10 minutes walk), walkable amenities like grocery stores and cafes, and relatively central locations that minimize daily commute times.

Finally, please note that we provide a very granular rental analysis in our property pack about Norway.

What are the average long-term monthly rents by neighborhood in Norway in 2026?

As of early 2026, average long-term monthly rents in Norway vary widely by neighborhood, with Oslo's Frogner and Bjørvika commanding 18,000 to 28,000 NOK for a 2-room apartment, while outer Oslo districts like Alna and Søndre Nordstrand range from 14,000 to 20,000 NOK for similar units.

In the most affordable neighborhoods of Norway, entry-level apartments (studios and small 1-bedrooms) typically rent for 9,000 to 13,000 NOK per month, including areas like Stovner and Grorud in Oslo or outer districts in smaller cities like Stavanger and Trondheim.

For mid-range apartments in average-priced neighborhoods like Sagene, Nordstrand, or Bergen's Årstad, you can expect monthly rents between 15,000 and 20,000 NOK for a standard 2-room apartment.

In the most expensive neighborhoods such as Frogner, Aker Brygge, and Tjuvholmen in Oslo, high-end apartments command monthly rents of 22,000 to 30,000 NOK or more, especially for newer construction with premium finishes and views.

You may want to check our latest analysis about the rents in Norway here.

Which Are the Up-and-Coming Areas to Invest in Norway?

Which neighborhoods in Norway are gentrifying and attracting new investors in 2026?

As of early 2026, the neighborhoods in Norway that are currently gentrifying and attracting new investors include Ensjø and Tøyen in Oslo's Gamle Oslo district, Teisen on the edge of Alna, Løren in Oslo's north, and Nordnes in Bergen.

These gentrifying neighborhoods in Norway have experienced annual price appreciation rates of approximately 4% to 7% over the past two years, outpacing the broader Oslo market which grew only 2% to 3% annually during the same period.

Which areas in Norway have major infrastructure projects planned that will boost prices?

The areas in Norway with major infrastructure projects expected to boost property prices include the Fornebubanen corridor connecting Oslo to Fornebu, the Lørenskog and Lillestrøm areas along improved rail lines, and neighborhoods around new metro extensions in Oslo's east.

Specific projects underway include the Fornebubanen metro line (expected to open by 2027-2028) connecting Majorstuen to Fornebu with six new stations, and continued improvements to the Bane NOR rail network reducing commute times from satellite cities.

Historically, areas in Norway that received new transit connections have seen price increases of 5% to 15% above the regional average within two to three years of project completion, based on patterns observed after previous metro and tram extensions in Oslo.

You'll find our latest property market analysis about Norway here.

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.

Which Areas in Norway Should I Avoid as a Property Investor?

Which neighborhoods in Norway with lots of problems I should avoid and why?

The neighborhoods in Norway that present the most challenges for property investors are not necessarily entire districts but rather specific situations: any borettslag building if your plan depends on Airbnb income, micro-areas with very few annual transactions (thin resale markets), and buildings in Bergen or Tromsø with unstable or contested short-term rental bylaws.

The main problems affecting each situation differ:

• Borettslag cooperatives: legally capped at 30 days annual short-term rental, making Airbnb strategies nearly impossible.
• Low-transaction micro-areas: difficult to sell quickly if you need to exit, with price discovery becoming unreliable.
• Buildings with contested STR rules: neighbor complaints and board changes can suddenly restrict rental income.

For these areas to become viable investment options, investors would need to see either legal reform expanding borettslag rental rights (unlikely in the near term), increased transaction volume bringing liquidity, or formal building-level agreements that permanently protect short-term rental use.

Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Norway.

Which areas in Norway have stagnant or declining property prices as of 2026?

As of early 2026, the areas in Norway showing the weakest price performance include parts of Tønsberg and Drammen (only 1.7% growth in 2025), some rural municipalities in Innlandet, and isolated pockets in Oslo where former rental properties have flooded the resale market.

These underperforming areas have experienced either flat growth (under 2%) or in some cases slight declines of 1% to 3% when adjusted for inflation, compared to the national average of 5% to 6% growth in 2025.

The underlying causes differ by area:

• Tønsberg and Drammen: higher supply from new construction and weaker local job growth relative to Oslo.
• Rural Innlandet: population outmigration to cities and aging demographics reducing buyer pools.
• Oslo former rental pockets: landlords selling due to tax changes have temporarily oversupplied certain buildings.

Which Areas in Norway Have the Best Long-Term Appreciation Potential?

Which areas in Norway have historically appreciated the most recently?

The areas in Norway that have historically appreciated the most over the past five years are Stavanger (14% in 2025 alone), Tromsø (10.7% in 2025), Bergen (9.9% in 2025), and select Oslo neighborhoods like Ensjø and the waterfront Bjørvika district.

Here are the approximate appreciation figures for each top-performing area:

• Stavanger: 14% in 2025, recovering strongly after years of post-oil-crisis stagnation.
• Tromsø: 10.7% in 2025, driven by Arctic tourism and university expansion.
• Bergen: 9.9% in 2025, outpacing Oslo due to strong local economy and limited supply.
• Oslo (Bjørvika, Ensjø): 5% to 7% annually, with waterfront areas leading the city average.

The main driver of above-average appreciation in these areas was a combination of constrained housing supply (very few new completions in 2024-2025), regional economic factors (oil industry recovery in Stavanger, tourism boom in Tromsø), and in Oslo's case, the steady transformation of former industrial areas into desirable residential neighborhoods.

By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Norway.

Which neighborhoods in Norway are expected to see price growth in coming years?

The neighborhoods in Norway expected to see the strongest price growth in coming years are Stavanger central districts (forecast 10% in 2026), Tromsø Sentrum (forecast 9% in 2026), Bergen Bergenhus (forecast 8.5% in 2026), and Oslo's Ensjø and Løren areas (forecast 5% to 7% in 2026).

Here are the projected annual price growth percentages for each high-potential neighborhood:

• Stavanger (Storhaug, Eiganes): 10% projected for 2026, continuing oil-sector recovery momentum.
• Tromsø Sentrum: 9% projected for 2026, though tourism growth may slow slightly.
• Bergen Bergenhus: 8.5% projected for 2026, benefiting from strong local employment.
• Oslo Ensjø and Løren: 5% to 7% projected for 2026, driven by ongoing redevelopment.

The single most important catalyst expected to drive future price growth in these neighborhoods is the continued shortage of new housing completions, with dwelling starts in Norway down over 17% in 2024 and unlikely to recover quickly, meaning demand will continue to outpace supply in these sought-after urban areas.

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 Do Locals and Expats Really Think About Different Areas in Norway?

Which areas in Norway do local residents consider the most desirable to live?

The areas in Norway that local residents consider most desirable to live include Frogner and Majorstuen in Oslo's inner west, Nordstrand for families seeking green space, St. Hanshaugen for young professionals, and Bergenhus in Bergen.

Each area attracts locals for different reasons:

• Frogner and Majorstuen: historic architecture, Frogner Park access, and upscale shopping.
• Nordstrand: family-friendly coastal atmosphere with good schools and nature access.
• St. Hanshaugen: central location, vibrant cafe culture, and walkable streets.
• Bergen Bergenhus: proximity to the historic Bryggen waterfront and cultural amenities.

The resident demographic in these locally-preferred areas typically includes established Norwegian families in Nordstrand, affluent professionals and diplomats in Frogner, creative workers and young couples in St. Hanshaugen, and a mix of all ages in Bergen's central districts.

Local preferences in Norway largely align with what foreign investors typically target, though locals often prioritize school quality and outdoor access more heavily, while foreign buyers may overweight nightlife and tourist appeal.

Which neighborhoods in Norway have the best reputation among expat communities?

The neighborhoods in Norway with the best reputation among expat communities are Frogner, Ullern, and Skøyen in Oslo's west, Majorstuen in central Oslo, and the Sentrum area of Stavanger.

Expats prefer these neighborhoods for specific reasons:

• Frogner and Ullern: proximity to international schools, embassies, and English-speaking services.
• Skøyen: modern corporate offices nearby and easy airport access via ring road.
• Majorstuen: excellent metro connections and walkable urban amenities.
• Stavanger Sentrum: oil industry headquarters and established international community.

The expat profile most commonly found in these neighborhoods includes corporate transferees working for multinational companies in Stavanger and Oslo, diplomatic staff and their families in Frogner, and tech workers in Oslo's western corridor near major employers.

Which areas in Norway do locals say are overhyped by foreign buyers?

The areas in Norway that locals commonly say are overhyped by foreign buyers are the ultra-premium Aker Brygge and Tjuvholmen waterfront, new-build Bjørvika apartments, and tourist-heavy micro-markets in Tromsø where Airbnb returns look better on paper than in practice.

Locals believe these areas are overvalued for different reasons:

• Aker Brygge and Tjuvholmen: prices depend on continued luxury buyer demand, with thin resale markets.
• Bjørvika new-builds: high service charges and construction defects in some buildings reduce real returns.
• Tromsø tourist micro-markets: STR income looks attractive but borettslag caps make it unreachable for most units.

What foreign buyers typically see in these areas that locals do not value as highly is the marketing appeal of "waterfront living" or "Northern Lights tourism" without fully accounting for Norway's strict rental regulations, high ongoing costs, and the practical realities of Norwegian weather and building maintenance.

By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Norway.

Which areas in Norway are considered boring or undesirable by residents?

The areas in Norway that residents commonly consider boring or undesirable include some outer Oslo districts with limited amenities, certain suburban developments along the E18 motorway corridor, and isolated neighborhoods in smaller cities that lack walkable services.

Residents find these areas less desirable for specific reasons:

• Outer Oslo car-dependent areas: few cafes, restaurants, or cultural venues within walking distance.
• E18 corridor suburbs: dominated by shopping malls and parking lots rather than street life.
• Isolated small-city neighborhoods: limited public transport and long drives to reach basic services.

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
Statistics Norway (SSB)	Norway's official statistics agency and baseline for market-level data.	We used it to anchor national and regional price trends. We also cross-checked private indexes against SSB figures for accuracy.
Oslo Kommune Bydelsfakta	Official Oslo municipal data with granular neighborhood indicators.	We used it to validate price dispersion across Oslo districts. We also pulled demographic and living conditions data from this source.
Eiendom Norge	Main industry body behind Norway's housing price statistics.	We used it to interpret monthly and quarterly market momentum. We also relied on their 2026 forecasts for growth projections.
Nordvik Bolig	Major broker publishing micro-market price metrics with transparent data sources.	We used it for by-district price-per-square-meter and recent changes. We cited it when we needed current price levels for early-2026 decisions.
Krogsveen	Large national brokerage with frequently updated and transparent pricing data.	We used it as a second independent read on micro-area pricing. We cross-checked it against Nordvik to avoid single-provider bias.
Norges Bank	Norway's central bank setting monetary policy that drives housing affordability.	We used it to frame the interest-rate backdrop affecting prices and yields. We also incorporated their 2026 price forecasts.
Lovdata	Official publication channel for Norwegian laws and amendments.	We used it to confirm the 90-day short-term rental cap in condominiums. We treated it as non-negotiable compliance input for STR strategies.
Regjeringen.no	Norwegian government's official legal interpretation and communication portal.	We used it to confirm the 30-day annual STR cap in borettslag cooperatives. We treated it as essential for co-op investment decisions.
AirDNA	Leading global short-term rental analytics vendor with consistent methodology.	We used it for comparable STR metrics like occupancy, ADR, and revenue across Norwegian cities. We then adjusted for local regulations.
Skatteetaten	Norwegian Tax Administration with official tax rulebook for rental income.	We used it to flag tax treatment differences across rental strategies. We incorporated it when comparing net yields.