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Yes, the analysis of Oslo's property market is included in our pack
As we reach mid-2025, Oslo's property market continues to demonstrate remarkable resilience and growth. Property prices in Oslo are rising steadily, with central neighborhoods experiencing particularly strong appreciation. This comprehensive analysis examines current market conditions, recent price movements, and future projections to help you understand whether now is the right time to invest in Oslo real estate.
If you want to go deeper, you can check our pack of documents related to the real estate market in Norway, based on reliable facts and data, not opinions or rumors.
Oslo's residential property prices have increased by approximately 2.5% over the past 12 months, with experts forecasting continued growth of 6-12% through 2025 and potentially stronger gains in 2026.
The market is supported by limited housing supply, strong foreign investment interest driven by the weak Norwegian krone, and expectations of future interest rate cuts from Norges Bank.
| Key Metric | Current Status | Forecast |
|---|---|---|
| Average Price per m² | 90,000 NOK | 95,400-100,800 NOK by end 2025 |
| 12-Month Price Change | +2.48% | +6-12% expected for 2025 |
| Mortgage Rate | 5.65% | Expected to drop to 3.25% by end 2025 |
| Average Days on Market | 23 days | Likely to remain below 30 days |
| Foreign Investment Interest | High | Expected to increase further |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What are the current mortgage rates in Oslo as of June 2025?
Current mortgage rates in Oslo stand at 5.65% as of June 2025, unchanged from the previous month.
This rate represents a significant increase from the historic lows seen in 2021 when rates dropped to 1.81%. The high interest rate environment has been maintained by Norges Bank, which has kept the key policy rate at 4.5% - a 16-year high.
However, Statistics Norway forecasts a substantial drop in the base interest rate from 4.5% to 3.25% by the end of 2025. This anticipated reduction has already begun to influence buyer sentiment, with many potential purchasers positioning themselves to take advantage of lower borrowing costs later in the year.
The mortgage market is also seeing positive changes in lending requirements. From January 2025, the required down payment for property purchases dropped from 15% to 10%, making homeownership more accessible to first-time buyers who now represent 50% of new home loans.
Despite current high rates, the Oslo property market remains resilient due to strong fundamentals and expectations of future rate cuts.
How much have Oslo property prices increased in the last 12 months?
Oslo property prices have risen by 2.48% nominally over the past 12 months through June 2025.
While this represents positive growth, it's worth noting that when adjusted for inflation, prices actually decreased slightly by 0.59%. This reflects the impact of elevated interest rates on buyer purchasing power throughout 2024 and early 2025.
The growth has been uneven across different periods. After a strong start to 2024 with prices rising 0.9% in March, the market experienced some volatility before stabilizing. The most recent quarter showed robust growth of 4.23%, suggesting momentum is building as buyers anticipate future rate cuts.
It's something we develop in our Norway property pack.
Despite the modest annual growth, Oslo's market has significantly outperformed the national average, demonstrating the capital's continued appeal to both domestic and international buyers.
The average price per square meter in Oslo now stands at approximately 90,000 NOK, making it the most expensive city in Norway with prices nearly double the national average of 45,500 NOK per square meter.
Which Oslo neighborhoods are experiencing the fastest price growth in 2025?
Several Oslo neighborhoods are seeing particularly strong price appreciation as we move through 2025.
The fastest-growing areas include Grünerløkka, which continues to attract young professionals with its vibrant cultural scene and excellent transport links. St. Hanshaugen has recorded a notable 4.8% increase, driven by its central location and abundant green spaces that appeal to environmentally conscious buyers.
Frogner remains a premium market with high growth rates, benefiting from limited supply of luxury properties and ongoing renovations of historic buildings. The area's established reputation and proximity to embassies and international schools makes it particularly attractive to foreign buyers.
| Neighborhood | Growth Rate | Key Drivers |
|---|---|---|
| Grünerløkka | High | Young professionals, cultural amenities, transport links |
| St. Hanshaugen | 4.8% | Central location, parks, urban regeneration |
| Frogner | High | Limited luxury supply, international appeal |
| Tøyen | Medium-High | Gentrification, redevelopment projects |
| Majorstuen | High | Premium location, shopping, schools |
Tøyen is experiencing medium-high growth fueled by gentrification and major redevelopment projects, making it an attractive option for investors seeking capital appreciation.
What are property price forecasts for Oslo through 2026?
Property price forecasts for Oslo remain strongly positive through 2026, with multiple experts predicting significant appreciation.
For 2025, Eiendom Norge forecasts a 6% increase in Oslo property prices, while some analysts are even more optimistic, predicting growth of up to 12%. This would take the average price per square meter from the current 90,000 NOK to between 95,400 and 100,800 NOK by year-end.
Looking ahead to 2026, the outlook becomes even more bullish. The combination of historically low housing construction levels and continued population growth is expected to create a severe supply-demand imbalance. Experts predict "very high" price growth in 2026, with some forecasting double-digit increases.
The main driver of these optimistic forecasts is the dramatic reduction in new housing starts. With only 11,000 homes started in Norway in 2023 - the lowest since the banking crisis of the late 1980s - the pipeline of new supply is severely constrained.
It's something we develop in our Norway property pack.
How are interest rate changes affecting Oslo's property market?
Interest rate policy is having a profound impact on Oslo's property market dynamics in 2025.
Norges Bank has maintained rates at 4.5% through early 2025, which has moderated price growth compared to the rapid appreciation seen in previous years. However, the market has shown remarkable resilience despite these elevated borrowing costs, with prices continuing to rise albeit at a slower pace.
The anticipated rate cuts later in 2025 are already influencing buyer behavior. Many purchasers are entering the market now to secure properties before the expected surge in demand when rates drop. Statistics Norway's forecast of rates falling to 3.25% by year-end has created a sense of urgency among buyers.
Paradoxically, the high interest rates have contributed to future price pressure by dampening new construction. Developers have postponed or canceled projects due to high financing costs, which will exacerbate the supply shortage when demand rebounds with lower rates.
The mortgage market has already seen increased activity, with demand for home loans rising significantly in recent months as buyers position themselves for the anticipated rate cuts.
Which property types are seeing the biggest price increases?
Small, centrally located apartments are experiencing the strongest price appreciation in Oslo's market.
These properties, typically one and two-bedroom units in neighborhoods like Grünerløkka and St. Hanshaugen, are seeing the highest price per square meter and strongest demand. The appeal lies in their accessibility to young professionals and investors, combined with the lifestyle benefits of central city living.
Tech-smart, energy-efficient apartments are commanding premium prices as buyers increasingly prioritize sustainability. Properties with features like smart home technology, heat pumps, and high energy ratings are selling faster and for higher prices than traditional apartments.
- Small central apartments (1-2 bedrooms): Highest price per m² growth
- Energy-efficient new builds: Premium of 10-15% over standard properties
- Properties with outdoor space: Balconies/terraces add significant value
- Suburban family homes: Growing demand but lower price appreciation
- Luxury penthouses: Limited supply driving strong growth in premium segment
Properties with outdoor spaces have become particularly desirable post-pandemic, with apartments featuring balconies, terraces, or access to gardens commanding substantial premiums.
What role are foreign investors playing in Oslo's market?
Foreign investors are playing an increasingly important role in driving Oslo property prices higher.
The weakening of the Norwegian krone has made Oslo real estate particularly attractive to international buyers. With the krone depreciating by 6.5% from 2022 to 2023 and a further 1.3% through 2024, foreign investors are getting more value for their money when purchasing Norwegian properties.
International real estate firms are expanding their presence in Norway, attracted by the country's political stability, strong property rights, and effective legal system. Oslo consistently ranks high in global quality of life indices, enhancing its reputation as a safe haven for international capital.
Foreign buyers are particularly focused on central neighborhoods like Frogner and Majorstuen, where they compete with local buyers for premium properties. This international demand is contributing to price pressure in these sought-after areas.
The trend is expected to accelerate as global interest rates converge, reducing hedging costs for cross-border investments and making Norwegian real estate even more attractive to international investors.
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How does Oslo's property market compare to other Scandinavian capitals?
Oslo's property market stands out as one of the most expensive in Scandinavia, with unique dynamics compared to Stockholm and Copenhagen.
At approximately 90,000 NOK per square meter, Oslo's average property prices are comparable to or slightly higher than Stockholm's central areas. However, Oslo has shown more resilience in recent years, with steady price growth while other markets have experienced more volatility.
| City | Avg. Price per m² | Rent Prices | Market Trend 2025 |
|---|---|---|---|
| Oslo | ~90,000 NOK | Lower than Copenhagen | Strong growth, stabilizing |
| Stockholm | Comparable to Oslo | Lower than Copenhagen | Moderate growth |
| Copenhagen | Slightly lower than Oslo | Highest in region | Strong demand, high growth |
Oslo ranks as the fifth most expensive capital in Europe for residential property and the ninth most expensive city globally. This premium pricing reflects Norway's strong economy and Oslo's position as a major international business center.
Copenhagen has recently overtaken Oslo in rental prices, though Oslo maintains higher purchase prices, creating an interesting dynamic for investors comparing yields across the region.
How is immigration affecting Oslo's housing demand?
Immigration continues to be a significant driver of housing demand in Oslo, though patterns have shifted in recent years.
While immigration levels have declined from the 2022 peak, Oslo maintains positive net migration primarily driven by international arrivals. The city's initiatives through Oslo Business Region to attract international talent have been successful, particularly in tech and finance sectors.
This influx of skilled professionals has created strong demand for high-quality rental properties. Average monthly rents for two-bedroom apartments have reached 18,405 NOK, with even higher prices in popular expat neighborhoods like Majorstuen.
The growth in international schools and amenities catering to expatriates has created a supportive ecosystem that continues to attract foreign professionals. Real estate reports project rental prices to increase by 7% in both 2025 and 2026 due to this sustained demand.
The combination of international talent attraction and limited luxury rental supply is creating particular pressure in the high-end market segment.
What is the supply situation for new properties in Oslo?
Oslo faces a critical shortage of new housing supply that will intensify through 2026.
The city needs approximately 5,000 new homes annually to meet demand, but completions are forecast to decline by nearly 90% from the 2023 peak by 2027. This dramatic shortfall is already creating upward pressure on prices.
New housing starts in 2023 hit historic lows at just 11,000 units nationally - the lowest since the late 1980s banking crisis. For Oslo specifically, this means very few new properties will enter the market in 2025 and 2026.
- Annual housing need: 5,000 units
- Expected completions 2025-2027: Declining by 90%
- Construction starts: At 30-year lows
- Development pipeline: Severely constrained by high interest rates
- Time to market: 18-24 months from start to completion
The supply crisis is compounded by Oslo's limited developable land and strict planning regulations. Combined with high construction costs and interest rates, developers have been reluctant to start new projects.
It's something we develop in our Norway property pack.
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 economic factors could impact Oslo property prices?
Several macroeconomic factors could influence Oslo's property market trajectory through 2025 and beyond.
Norway's mainland GDP growth is projected at a modest 0.8% for 2025, which could dampen wage growth and buyer purchasing power. However, Oslo's diversified economy, representing 13% of national GDP, provides resilience against broader economic headwinds.
Key risks that could cause property prices to fall include further interest rate hikes beyond current expectations, though this appears unlikely given Norges Bank's current stance. A sharp economic downturn or spike in unemployment could reduce housing demand, though Oslo's unemployment rate remains near historic lows.
Global factors also play a role. Geopolitical tensions affecting Norway's key industries - particularly energy exports - could impact the broader economy. Additionally, any significant policy changes such as stricter lending regulations or new property taxes could cool the market.
On the positive side, Norway's sovereign wealth fund and strong fiscal position provide buffers against economic shocks, supporting long-term property market stability.
Should international buyers invest in Oslo property now?
As of June 2025, Oslo presents a compelling opportunity for international property investors despite high entry prices.
The combination of currency advantage from the weak krone, anticipated interest rate reductions, and severe supply constraints creates favorable conditions for price appreciation. International buyers can purchase property in Norway with the same rights as locals, with no restrictions on foreign ownership.
Central neighborhoods like Frogner, Grünerløkka, and Majorstuen offer the best prospects for capital appreciation and rental yields. These areas benefit from strong local demand, international appeal, and limited new supply.
However, buyers should be prepared for high transaction costs including a 2.5% property transfer tax and total acquisition costs of 2.5-5.6% of the purchase price. Despite these costs, the long-term growth prospects remain strong.
With prices expected to rise 6-12% in 2025 and potentially higher in 2026, entering the market now could prove advantageous before the anticipated surge when interest rates fall.
Conclusion
As we assess Oslo's property market in mid-2025, the answer is clear: Yes, property prices are going up, with strong momentum expected to continue through 2026 and beyond.
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
The combination of limited housing supply, strong demand from both domestic and international buyers, and anticipated interest rate cuts creates a favorable environment for continued price appreciation. While current mortgage rates remain elevated at 5.65%, the expected reduction to 3.25% by year-end will likely accelerate demand and push prices higher.
For investors and homebuyers considering Oslo property, the current market presents an opportunity to enter before the anticipated surge in activity when rates fall. With central neighborhoods showing the strongest growth potential and foreign investment interest remaining high, Oslo's property market appears well-positioned for sustained appreciation through the remainder of 2025 and into 2026.
Sources
- 15 strong trends for 2025 in the Oslo property market – Investropa
- Price index for existing dwellings – Statistics Norway (SSB)
- Forecast for the housing market 2024 - Eiendom Norge
- Norway Residential Real Estate Market Analysis - Global Property Guide
- Statistics Norway Predicts Lower Mortgage Rates in Norway for 2025
- Norway Mortgage credit interest rate - TheGlobalEconomy.com
- Yes, property prices will rise in Oslo in 2025 – Investropa
- The housing market - Find a home - Oslo kommune
- Norway Interest Rate - Trading Economics
- Property Prices in Oslo - Numbeo