Authored by the expert who managed and guided the team behind the Norway Property Pack
Yes, the analysis of Oslo's property market is included in our pack
What will happen in Oslo’s real estate market? Will prices rise or fall? Is Oslo still a prime location for international investors? How are Norway’s government policies and taxes shaping the real estate landscape in 2025?
We’re frequently asked these questions because we’re deeply engaged in this market. Through our collaboration with real estate agents, property developers, and clients purchasing homes in Oslo, we’ve gathered firsthand insights.
That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive perspective on market predictions and forecasts.
Our aim is straightforward: 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) Rental yields in Oslo will rise as more international students and expats move in
Rental yields in Oslo are on the rise as the city becomes a magnet for international students and expatriates.
The University of Oslo is seeing a surge in international students, making the city a hot spot for higher education. These students often choose to rent, given their temporary stay, boosting demand for rental properties. Oslo's strong economy and low unemployment rates are also drawing expatriates looking for job opportunities, further fueling the rental market.
Oslo is facing a significant shortage of new housing developments, creating a supply-demand imbalance. This shortage is expected to continue, pushing rental prices and yields higher. In fact, the average monthly rent in Oslo has jumped by 20% over the past two years, now nearing NOK 19,000. This increase is partly due to fewer investor-owned apartments available for rent.
Government policies are making it easier for international students and professionals to move to Oslo, enhancing the city's appeal as a global destination. This growing attractiveness is driving up the demand for rental properties.
Sources: Shiksha, News in English, Leverage Edu
2) Property prices in Majorstuen will stay stable because of its strong reputation and amenities
Majorstuen has a long-standing reputation for maintaining stable property prices, even when the broader Oslo real estate market experiences fluctuations. For example, in July 2023, while housing prices in Oslo fell by 1.1%, Majorstuen's prices remained stable. This stability is largely due to its consistent appeal and the limited availability of new developments in the area.
The high demand for housing in Majorstuen is evident from its rental rates. A three-room apartment can rent for NOK 27,000 a month, indicating strong demand. Additionally, the ongoing renovation of the Majorstuen station, which includes upgrading tracks and adding a new pedestrian and cycle bridge, will enhance connectivity and accessibility, further increasing demand for housing in the area.
Majorstuen consistently ranks as one of the most desirable neighborhoods in Oslo. Its proximity to public transportation, reputable schools, and cultural amenities makes it an attractive place to live. The presence of quality educational institutions, such as the MF Norwegian School of Theology and the Norwegian Academy of Music, attracts families and students, contributing to stable property prices.
Sources: Wikipedia, News in English, The Construction Data
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.
3) Oslo real estate agents will commonly use virtual reality tours to improve the buying experience
Virtual reality property tours have become a common tool for Oslo real estate agents, significantly enhancing the buying experience. In the past, during 2023 and 2024, we saw a global shift towards digital property viewing, with more than half of adults worldwide taking virtual tours. This trend was mirrored in Norway, where 67% of home buyers expressed a preference for virtual tours when browsing listings.
Norway's high internet penetration rate of 99.0% and the rapid increase in mobile internet speeds have made it easier for people to access these virtual tours. This technological readiness has been crucial in supporting the adoption of virtual reality in real estate. Additionally, real estate listings with virtual tours received 87% more views, showing that buyers are more engaged and interested in properties that offer immersive experiences.
Moreover, the affordability and user-friendliness of VR technology have made it accessible to more real estate agencies, allowing them to meet the growing demand for digital solutions. Many agencies in Oslo have already started offering VR tours, indicating a proactive approach to adopting new technologies. This shift has been further supported by partnerships between tech companies and real estate firms, which have developed VR solutions tailored to the industry.
Sources: Datareportal 2023 Norway, Datareportal 2024 Norway, Photoup Real Estate Virtual Tour Statistics
4) More foreign investors will enter Oslo’s housing market as the city becomes known for its high quality of life
Oslo is becoming a hotspot for foreign investors due to its exceptional quality of life.
The city consistently ranks high in quality of life indices, like the Numbeo Quality of Life Index, where it scored 186.14. This high score makes Oslo a prime destination for real estate investment. The city's commitment to sustainability is another draw, as seen in its top ranking in the Arcadis Sustainability City Index 2022, especially in the Planet category.
Oslo's vibrant startup scene is also a magnet for investors. In just five years, the city has birthed 7 unicorns, making it a hub for innovation and international business interest. This dynamic environment is appealing to those looking to invest in a city with a promising economic future.
Real estate in Oslo is on the rise, with housing prices expected to increase by 6% in 2024. This growth signals a robust market, attracting both local and international investors eager for profitable opportunities. The city's cultural and lifestyle attractions, like the Munch Museum and the Climate House, add to its allure.
Oslo's international profile is further boosted by media attention highlighting it as a desirable place to live. This focus not only enhances its reputation but also draws more foreign interest in its residential market.
Sources: Place Brand Observer, Oslo Business Region, Eiendom Norge, Numbeo
5) Property values in Oslo neighborhoods will rise due to new green spaces and parks
In recent years, Oslo has made significant strides in expanding its green spaces, which has had a noticeable impact on property values in nearby neighborhoods. Historical data shows that the city's commitment to preserving and expanding green areas, such as parks and forests, has been a key factor in the appreciation of property values. This trend was particularly evident in 2023 and 2024, as Oslo's sustainable urban development efforts continued to gain momentum.
Research consistently indicates that properties near parks and green spaces tend to have higher demand and better resale values. This is largely due to the improved quality of life and aesthetic appeal that these areas offer. In Oslo, the development of new parks has not only enhanced recreational facilities but also increased foot traffic and business activity, further boosting the attractiveness of these neighborhoods.
Surveys and market analyses have shown that buyers have a strong preference for properties located near green spaces. This preference is driven by the desire for a better quality of life, improved air quality, and enhanced recreational opportunities. Additionally, expert opinions from urban planners and real estate analysts highlight the economic benefits of green spaces, reinforcing the positive impact on property values.
Sources: Urbact, Green City Times
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6) More foreign buyers will invest in Oslo's suburbs because of lower entry costs
Foreign buyers are likely to focus on Oslo's suburban areas for investment because of the lower entry costs compared to the city center. In the past, specifically in 2023 and 2024, property prices in central Oslo were significantly higher, making the suburbs a more affordable option. For example, the price per square meter in the city center was around 96,464.52 kr, while in the suburbs, it was approximately 6,621.87 kr.
Additionally, rental yields in suburban areas have been higher than those in central Oslo. In 2023, the gross rental yield in the suburbs was 3.81%, compared to 3.50% in the city center. This means that investors could potentially earn more from renting out properties in the suburbs, making it an attractive option.
Moreover, there has been significant infrastructure development and improved transport links in suburban Oslo, which has made these areas more appealing to both residents and investors. For instance, new developments in Lillestrøm have increased its attractiveness to professionals seeking more space. This, combined with demographic studies showing population growth in suburban regions, indicates a rising demand for housing in these areas.
Sources: Numbeo
7) Demand for eco-friendly homes in Oslo will grow as buyers become more environmentally conscious
Eco-friendly homes are gaining traction in Oslo as more buyers become environmentally conscious.
In Norway, 59% of homes built after December 31, 2020, meet the nearly zero-energy building criteria, showing a clear shift towards energy-efficient living. This trend is particularly appealing to those who prioritize sustainability in their home-buying decisions.
Oslo is also seeing a rise in the use of sustainable building materials. The city's push for decarbonization has led to innovations like low-carbon concrete and recycled materials, which are being used in major projects such as the new North Pier at Oslo Airport Gardermoen.
Government incentives are a big part of this green movement. The Norwegian government has set strict regulations and offers incentives for eco-friendly construction. The Directorate for Building Quality has established guidelines for nearly zero-energy buildings, and Oslo uses its purchasing power to promote sustainable practices in the construction industry.
Oslo's ambitious carbon reduction goals are another driving force. The city aims to cut emissions by 36% from 1990 levels by the end of next year and 95% by 2030. This naturally boosts the demand for eco-friendly homes, as they play a crucial role in meeting these targets.
As environmental awareness grows among buyers, eco-friendly homes are expected to become even more popular in Oslo. This trend is not just about reducing carbon footprints but also about creating a sustainable future for the city.
Sources: Eiendomsverdi, Business Norway, C40, Green City Times
8) Rental yields in the city center will drop as more people choose to live in the suburbs
People are moving away from city centers like Oslo due to high property prices.
In Oslo, the average price per square meter is around $8,700, making neighborhoods like Frogner and Majorstuen quite pricey. This has pushed many to consider more affordable options outside the city.
The rise of remote work has increased the demand for larger homes, which are more common in the suburbs. For instance, you can buy a condominium in Søndre Nordstrand for $290,000, while an apartment in Majorstuen might set you back $920,000.
Many Oslo residents are choosing suburban living for its affordability and lifestyle perks. Suburban areas are not only cheaper but are also seeing improvements in infrastructure and amenities, making them more appealing.
There's a noticeable development of new residential projects in the suburbs, showing a growing interest in these areas. This trend is reshaping the housing market, with more people opting for the space and comfort that suburban living offers.
As a result, the rental market in the city center is expected to see a decline in yields, as more people prefer the suburban lifestyle. This shift is significant and could change the dynamics of property investment in Oslo.
Sources: Global Property Guide, Norada Real Estate, News in English
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.
9) More foreign buyers will boost competition in Oslo’s luxury property market
Oslo's luxury property market is buzzing with foreign interest.
High-net-worth individuals are flocking to the city, drawn by global wealth migration trends favoring Scandinavia. This makes Oslo a hot spot for those seeking upscale homes.
Real estate firms like Blystad Group are seeing a surge in foreign investment, especially in prime residential areas. This is a clear sign of the growing allure of Oslo's high-end properties.
With international buyers eyeing luxury homes, competition in Oslo's property market is heating up. The demand is pushing the market dynamics, making it a competitive arena for potential buyers.
According to Savills, there's a noticeable trend of increased foreign ownership in Oslo. This is particularly evident in the luxury segment, where international interest is strong.
As more foreign buyers enter the scene, Oslo's high-end market is becoming increasingly competitive. This trend is reshaping the landscape for those looking to invest in the city's luxury real estate.
Sources: Savills, Blystad Group
10) Affordable housing prices in Oslo will rise as young professionals drive up demand
Oslo has been experiencing a notable influx of young professionals, with an expected increase of 5,100 people moving to the city each year until 2030. This trend is largely driven by the city's growing employment opportunities and the appeal of urban living.
Norway's economy has shown promising growth, with a 2.2% increase in 2023 and a projected 2.5% in 2024. This economic expansion is attracting more young professionals to Oslo, seeking job opportunities and the vibrant city life that surveys indicate they prefer.
However, the supply of affordable housing in Oslo is limited, with only 3,700 new residences being built each year. This creates a competitive housing market where 2.5 people are competing for each new home, leading to increased demand and rising prices in the affordable housing sector.
Sources: OsloMet
11) Demand for senior-friendly housing in Oslo will grow as the population ages
In Oslo, 16.9% of the population is aged 65 and over, and this number is climbing.
With life expectancy in Norway projected to hit 83.23 years by 2025, people are living longer than ever. This longevity means more seniors will need homes that are easy to navigate and accessible.
There's a growing trend of retrofitting homes for accessibility, which is crucial for seniors who want to maintain their independence. This shift is not just about convenience; it's about enabling older adults to live comfortably in their own homes.
Developments like Ulvenplassen in Oslo are being designed to combat loneliness and build community among seniors. These projects are perfect for those who want to age in place while staying socially connected.
As the demand for senior-friendly housing rises, Oslo is seeing more innovative housing solutions tailored to the needs of its aging residents. This is a response to the growing number of seniors who prefer to stay in their communities.
For potential property buyers, this trend means investing in accessible housing could be a smart move. The market is shifting to accommodate the needs of an older population, making it a promising area for investment.
Sources: Economy Finance, Macrotrends, Industry Radar
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12) Rental yields in suburbs will increase as families look for bigger homes outside city centers
Remote work is reshaping where families choose to live.
With more people working from home, families are looking for larger living spaces, often found in the suburbs. This shift is noticeable as families move away from crowded city centers to enjoy more space and affordability. In Oslo, for instance, the high property prices in the city center are pushing families to consider suburban areas, which offer more bang for their buck.
As property prices in Oslo continue to climb, suburban areas are becoming even more appealing. Families are drawn to these areas not just for the cost savings but also for the extra space and proximity to nature. The pandemic has played a big role in this trend, as working from home means people can live further from their offices without the daily commute.
Demographic changes also show a growing preference for suburban living. Families are increasingly valuing the lower density and access to green spaces that suburbs provide. Schools and community amenities add to the appeal, making these areas ideal for raising children.
Suburban rental yields are expected to rise as more families seek these larger living spaces outside the city center. This trend is particularly evident in places like Oslo, where the demand for suburban homes is on the rise. As families continue to prioritize space and affordability, the suburbs are becoming the go-to choice for many.
Sources: Global Property Guide, In Your Pocket, TenantCloud, Tillvaxtanalys
13) Property prices in Oslo's suburbs will rise slightly as remote work becomes more common
Oslo's suburbs are becoming a hot spot for homebuyers as remote work gains traction.
With more people working from home, there's a growing desire for larger living spaces that suburbs offer. Families and individuals are drawn to these areas for their proximity to green spaces and schools, making them ideal for a balanced lifestyle.
Norway is leading the way in remote work, with a significant portion of the workforce embracing this trend. In fact, 42% of workers have been working remotely at least part-time. This shift means living close to city centers is less important, and suburban areas are becoming more attractive.
Young professionals, who once flocked to the city for its vibrant culture and job opportunities, are now seeing the appeal of suburban life. They value the extra space and quieter environment that these areas provide, aligning with their lifestyle preferences.
Real estate market reports highlight a noticeable shift in buyer interest towards suburban properties. This change is driven by the need for more spacious homes and the benefits of suburban living, which are increasingly appealing to remote workers.
As remote work continues to rise, expect a slight increase in property prices in Oslo's suburban areas. The demand for homes that offer both space and a connection to nature is only set to grow.
Sources: National World, Global Property Guide
14) Oslo’s property prices will keep rising steadily because of limited land and high demand
Oslo's residential property prices have been on a steady rise, and this trend is expected to continue. One of the main reasons is the limited availability of developable land. Oslo is a densely populated urban area, and there's simply not much space left to build new homes. This scarcity of land naturally drives up property prices.
Another factor contributing to the rising prices is the increasing population growth in Oslo. The city has been experiencing a steady influx of new residents, with an average annual increase of 5,100 people until 2030. More people moving to the city means more demand for housing, which pushes prices higher.
Additionally, there's a strong preference for urban living, especially among young professionals. Oslo offers numerous job opportunities, cultural events, and a vibrant nightlife, making it an attractive place to live. This high demand for city living further boosts the demand for residential properties.
Historical trends also show a consistent increase in property prices in Oslo. Since 1995, real house prices in Norway have tripled, and Oslo's average house price is now around $650,000. This long-term trend indicates that prices are likely to keep rising.
Sources: SSB
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.
15) Property values in St. Hanshaugen will rise steadily because of its central location and green spaces
St. Hanshaugen's central location in Oslo makes it a prime spot for both living and business.
Being close to the city center and major business districts, St. Hanshaugen is highly desirable, which boosts its potential for property value growth. Historically, neighborhoods like Grünerløkka and Frogner have seen property prices soar due to their central locations.
In Oslo, central areas have consistently increased in value, and St. Hanshaugen is expected to follow this trend. The demand for housing in central Oslo is strong, thanks to the city's solid economy and low unemployment rates.
Urban green spaces are a big deal for residents, and they can significantly impact property values. St. Hanshaugen benefits from its park and recreational areas, making it even more attractive.
With Oslo's robust economic performance, the demand for housing in areas like St. Hanshaugen is expected to remain strong. This demand is likely to sustain property value increases in the neighborhood.
St. Hanshaugen's combination of central location and green spaces makes it a hot spot for property investment. Expect steady growth in property values here.
Sources: Macrotrends, HVL Open, Tripadvisor, Wallet Investor
16) Property prices in Gamle Oslo will rise as urban renewal projects make the area more attractive
Gamle Oslo is buzzing with exciting urban renewal projects that are set to transform the area.
These projects include the extension of tram lines and the renovation of historic sites, making the district more appealing. With improved infrastructure and connectivity, Gamle Oslo is becoming a hotspot for potential homeowners.
In 2023 and 2024, the Oslo city government rolled out plans to boost infrastructure in districts like Gamle Oslo. Enhancements such as better public transportation links are expected to make the area more attractive. The upcoming second common tunnel from Majorstuen to Tøyen will introduce new stations, increasing housing demand in the area.
Media outlets are buzzing about Gamle Oslo's transformation, highlighting new amenities, services, and cultural events that draw more visitors. This positive coverage is sparking interest in living there, pushing property prices upward. The trend of younger professionals and families moving into areas like Gamle Oslo is further fueling housing demand.
Sources: Oslo Metro - Wikipedia, Lowest transaction volume in a decade, but better times ahead
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.