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 is happening in Oslo’s real estate market? Are prices on the rise or decline? Is the city still attracting international investors? How are local government policies shaping real estate dynamics in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Oslo and beyond. Maybe you’re curious about the same things.
We know this because we stay closely connected with local experts and people like you, exploring the Oslo real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) A weaker Norwegian krone will draw more foreign investors to Oslo’s property market
The weakening of the Norwegian krone has made Oslo's property market more appealing to foreign investors. When the krone depreciates, it means that foreign buyers can get more value for their money when purchasing properties in Norway. For example, the krone depreciated by 6.5% from 2022 to 2023, and although it only depreciated by 1.3% from 2023 to 2024, it still made Norwegian properties cheaper for foreign buyers.
In recent years, there has been a noticeable increase in foreign investment in Oslo's real estate market. Despite the krone's depreciation, house prices in Oslo have continued to rise, with a 2.48% increase in the house price index in 2024. This suggests that foreign investors are still keen on buying properties in Oslo, likely due to the currency advantage.
Oslo's property prices are also competitive compared to other European capitals. For instance, the median price per square meter in Oslo is €8,323, which is significantly lower than in cities like Zurich and Luxembourg. This makes Oslo an attractive option for foreign investors looking for affordable yet high-value properties.
Sources: Regjeringen, Global Property Guide, Global Property Guide
2) Oslo's real estate will attract more international interest for its stable and safe investment reputation
International interest in Oslo's real estate is set to grow due to its reputation as a stable and safe investment environment. In recent years, cross-border investment activity in Norway has averaged 18%, with increased interest from international investors. This trend is expected to continue, making Oslo an attractive destination for foreign capital.
Oslo's property prices have been rising significantly, outpacing other European cities. Between 2002 and 2022, property prices in Oslo increased by 250%, indicating strong demand from both domestic and international investors. This price growth reflects the city's appeal as a lucrative investment opportunity.
Reports from international real estate agencies highlight Norway's macroeconomic and political stability as key factors attracting international investors. The country's high population forecast and sovereign wealth fund further enhance its appeal. As foreign interest rates align, hedging costs are decreasing, making Norway even more attractive for cross-border capital.
Oslo consistently ranks high in global quality of life and safety indices, enhancing its reputation as a secure environment for investments. This reputation, combined with favorable tax policies for foreign investors, makes Oslo a compelling choice for those seeking stable and safe investment opportunities.
Sources: Global Property Guide, CBRE
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) Foreign buyers will target central and prestigious neighborhoods for investment opportunities
Foreign buyers are likely to focus on central and prestigious neighborhoods for investment opportunities due to several compelling reasons.
Firstly, property prices in central Oslo neighborhoods are on the rise, with forecasts predicting a 6% increase in house prices for 2024. This trend is particularly strong in central areas like Oslo and Stavanger, making them attractive for investors looking for appreciation in value.
Additionally, the Norwegian real estate market is open to non-Norwegian citizens, offering the same rights as locals. This openness has led to increased foreign investment, especially in central areas where demand is high. Real estate agencies have reported that Oslo's market was stronger in 2023 compared to the rest of the country, with interest rate cuts expected to further boost price developments in these central locations.
Moreover, media coverage often highlights the attractiveness of Oslo's central districts for investment, citing their strong local economy and continuous property development. This makes these areas particularly appealing to international investors seeking stable and lucrative opportunities.
Sources: Eiendom Norge, Aparthotel.com
4) Løren will draw young professionals with new residential projects and amenities
The Løren area in Oslo is becoming increasingly attractive to young professionals, thanks to new residential developments and amenities. In 2023, Veidekke was awarded a contract to build the final stage of the Lille Løren Park project, which includes 355 environmentally certified apartments and a kindergarten. This ongoing investment shows a commitment to developing the area with modern living spaces.
Additionally, the Løren Botaniske project, completed in 2023, offers 385 apartments with green and cultivable outdoor areas, including a greenhouse and food plants. These features provide residents with the opportunity to enjoy nature and grow their own produce, which is appealing to those seeking a sustainable lifestyle. The presence of communal terraces and roof gardens further enhances the living experience, making it a desirable place for young professionals.
Improved public transportation links, such as the expansion of the metro network connecting Løren to central Oslo, make commuting easier and more convenient. This infrastructure development is crucial for young professionals who need efficient access to the city center. Moreover, the stabilization of property prices in Løren since June 2024 suggests a promising real estate market, attracting those looking for investment opportunities.
Sources: Veidekke, Railway Pro, Oslo Business Region, Veidekke
5) Oslo’s property prices will stabilize following a period of rapid growth
In recent years, Oslo's residential property market has experienced rapid growth, but several factors suggest that prices will stabilize. One key indicator is the decreasing rate of property price growth. For example, the seasonally adjusted price index for existing dwellings in Oslo, including Bærum, showed a slower growth rate from the 2nd to the 3rd quarter of 2024.
Additionally, the increased supply of new housing developments in Oslo is expected to contribute to a more balanced market. Ongoing construction of mixed-use and eco-friendly urban projects will eventually help meet the demand for housing. Government policies aimed at cooling the housing market, such as incentives for first-time homebuyers and energy-efficient home upgrades, are also playing a role in stabilizing the market.
Rising interest rates are another factor affecting the market. As mortgages become more expensive, the purchasing power of buyers decreases, which can cool demand and lead to price stabilization. Consumer surveys and media reports indicate a shift in buyer sentiment, with more caution due to economic uncertainties and higher interest rates, further contributing to reduced demand for high-priced properties.
Sources: SSB, Aparthotel, Eiendom Norge
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6) St. Hanshaugen's property values will rise due to its central location and green spaces
St. Hanshaugen is set to see a rise in property values, and there are a few key reasons for this. First, property prices in central Oslo have been on the rise, with a notable 4.8% increase from 2023 to 2024. This trend suggests that areas like St. Hanshaugen, which are centrally located, are becoming more desirable.
Another important factor is the growing demand for housing in urban areas that offer green spaces. St. Hanshaugen is known for its parks and recreational areas, making it attractive to environmentally conscious buyers. This demand is further fueled by urban regeneration projects and improved public transport access, which enhance the neighborhood's appeal.
Additionally, Oslo's population has been steadily increasing, with a 1.38% growth from 2023 to 2024. This population growth indicates a strong demand for housing, particularly in desirable neighborhoods like St. Hanshaugen. As more people move to the area, the demand for housing is likely to drive up property values.
Sources: SSB, Macrotrends
7) Oslo city center rents will increase due to limited supply and high demand
Oslo's city center is seeing a noticeable rise in rental prices due to limited supply and high demand.
In 2022, office rents in Oslo jumped by 11.4%, and although the growth slowed to 3.2% in late 2023, the pressure on prices remains. This is because Oslo is one of Europe’s fastest-growing cities, with its population expected to rise by 30% by 2030, driving up demand for both housing and office space.
Central Oslo's low vacancy rates highlight the limited supply issue. The leasing market is tight, with few new office developments and a lot of interest from potential tenants. This scarcity naturally pushes rents higher.
Over 80% of Norway’s population lives in cities, and this urbanization trend is not slowing down. People are moving to cities like Oslo for work and other opportunities, increasing the demand for central locations.
However, Oslo faces a shortage of new housing developments, especially in central areas, due to zoning restrictions. This lack of new housing, combined with high demand, is a major factor in the rising rental prices.
With Oslo's population growth and urbanization trends, the demand for properties in the city center is only expected to increase, keeping the pressure on rental prices.
Sources: Market Figures Q4 2023, Urban Development in Norway
8) New environmental rules will boost the development of energy-efficient homes in Oslo
In recent years, Oslo has seen a significant push towards energy-efficient homes, largely driven by new environmental regulations. The Norwegian government has been proactive in setting ambitious targets, such as making all construction sites emission-free by 2030, with some predictions suggesting this could be achieved as early as 2025. This has created a strong incentive for developers to focus on energy-efficient construction.
Energy Performance Certificates (EPCs) have been mandatory in Norway since 2010, and by 2020, a substantial portion of residential buildings had these certificates, indicating a trend towards energy efficiency. However, with only 30% of homes having valid energy certificates, there is still room for growth, which these regulations aim to address. The inclusion of energy efficiency in national building codes further ensures that new buildings meet high energy performance standards, pushing the development of energy-efficient homes.
Moreover, the Norwegian government has been advocating for reduced carbon footprints in housing, setting targets to cut energy use in existing buildings by 10 terawatt hours by 2030. This includes promoting electric heating systems over fossil fuel-based ones, which have been banned since 2016. These measures not only encourage the development of energy-efficient homes but also align with the broader cultural shift towards sustainability.
Sources: Business Norway, Eika Boligkreditt, IEA, Eiendomsverdi
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) Majorstuen will stay popular for its shopping and dining attractions
Majorstuen district in Oslo is a hotspot for shopping and dining.
In 2023 and 2024, the area saw a 6.8% rise in retail foot traffic in June 2024, showing a strong comeback in consumer activity. This surge is fueled by a vibrant mix of shops and eateries, making it a lively place to visit. The shopping centers have bounced back to pre-pandemic sales levels, with a 4.4% increase in sales and a 9.3% rise in visitor numbers, underscoring the district's bustling commercial scene.
Majorstuen's charm is amplified by glowing media coverage and social media buzz, highlighting its trendy lifestyle. The district boasts top-rated dining spots like W.B. Samson, known for its excellent ambience, which adds to its appeal. This makes it a go-to destination for both locals and tourists looking for a great dining experience.
Local government initiatives are also in play, supporting business growth and urban development. These efforts focus on enhancing commercial areas, making Majorstuen even more attractive for potential property buyers. The district's ongoing development ensures it remains a prime location for investment.
With its dynamic shopping and dining scene, Majorstuen continues to draw attention. The combination of retail success, media spotlight, and government support makes it a compelling choice for those considering a property purchase in Oslo.
Sources: CBRE Research: Market Outlook 2023, Placer.ai: Retail Foot Traffic Improves, TripAdvisor: W.B. Samson Restaurant Reviews
10) Young professionals will boost demand for modern apartments in central Oslo
Oslo has been experiencing a significant influx of young professionals, particularly in its thriving tech and finance sectors. This trend was evident in 2023, with the city hosting 2,890 startups that employed nearly 10,000 people and contributed significantly to the local economy.
In 2024, employment opportunities in Oslo's tech and finance sectors continued to grow, with a notable increase in job vacancies. This growth has attracted more young professionals to the city, who are often drawn to urban living and modern amenities.
Surveys from 2023 showed that young people in Oslo prefer urban living, aligning with the trend of young professionals seeking modern apartments in central areas. Additionally, the development of new modern apartment complexes in central Oslo caters to this demand, offering high-end accommodations with modern features.
Oslo's appeal as a vibrant and dynamic city, highlighted by media coverage, further attracts young professionals. The city's excellent standard of living, high salaries, and work-life balance make it an attractive destination, driving the demand for modern apartments in central Oslo.
Sources: Oslo Business Region, OsloMet, World's Best Cities, Nucamp
11) Central Oslo will see higher rental yields as demand for city living stays strong
Rental yields in central Oslo are expected to increase as demand for city living remains strong. This is largely due to the rising property prices in the area, driven by high demand and limited housing supply. Oslo's reputation as a vibrant and economically stable city continues to attract both domestic and international investors, further pushing property prices upward.
The limited availability of new housing developments in central Oslo contributes to low vacancy rates in rental properties. This scarcity of housing means that as demand outpaces supply, rental yields are driven up. Additionally, the ongoing shortage of new housing developments is expected to persist, maintaining this imbalance between supply and demand.
Moreover, the increasing costs of home ownership in Oslo make it less affordable for many, pushing more people towards renting. This trend is expected to continue, further increasing demand for rental properties. The limited availability of land for new construction in central areas also plays a significant role, as it contributes to the high demand for existing properties, driving up rental yields.
Sources: TOI, In Your Pocket, OECD
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12) Newly developed areas will provide competitive rental yields with modern amenities and infrastructure
In recent years, newly developed areas in Oslo have become increasingly attractive for property investors, primarily due to their competitive rental yields. These areas often offer modern amenities and infrastructure, which are key factors in driving up rental yields. For instance, while the average gross rental yield in Oslo is 3.21% for apartments, newer properties, such as a 4-bedroom apartment, can offer yields as high as 3.73%.
One of the main reasons for this trend is the increased demand for modern amenities. Tenant surveys have shown that people highly value well-maintained properties with up-to-date facilities, leading to higher tenant satisfaction and engagement. This demand naturally boosts the rental yields in these areas, as tenants are willing to pay more for better living conditions.
Moreover, newly developed areas often enjoy higher occupancy rates. For example, Entra reported a stable occupancy rate of 95.6% in Q3 2023, indicating that these areas are popular among tenants. This high occupancy is partly due to infrastructure improvements, which make these areas more accessible and convenient for residents.
Sources: Global Property Guide, Public Property Invest, Entra
13) Luxury rental properties will see higher rents as demand from foreign professionals rises
Luxury rental properties in Oslo are set to command higher rents due to increased demand from foreign professionals. This trend is largely driven by the rising number of international talents moving to the city. In 2023, the employment rate among immigrants in Norway was 68.2%, showing a significant presence of foreign professionals in the workforce.
Oslo has been actively attracting international talent, with initiatives like the Oslo Business Region providing support for recruiting and onboarding foreign professionals. This focus on international talent has contributed to the demand for high-end accommodations. Additionally, the rental market in Oslo is experiencing a shortage of luxury properties, with average monthly rents for two-bedroom apartments reaching NOK 18,405, and even higher in popular neighborhoods like Majorstuen.
Real estate market reports highlight the demand-supply gap in luxury rentals, projecting rental prices to increase by seven percent in both 2025 and 2026. This is further supported by the growth in international schools and amenities catering to expatriates, creating a supportive environment for foreign professionals and driving up demand for luxury rentals.
Sources: SSB, Oslo Business Region, UNION M2, News in English
14) Suburban property prices may dip slightly as demand returns to urban centers
In recent years, we've seen a noticeable shift in property demand from suburban areas back to urban centers, particularly in cities like Oslo. This trend is largely driven by several key factors that have emerged over the past couple of years.
Firstly, the urban real estate market in Oslo has been experiencing significant transformations. Economic, social, and technological factors are playing a big role in this change. For instance, despite a slight dip in housing prices in Oslo last month, the overall trend since 2023 has shown a robust price growth of 5.8%. This indicates a strong demand for urban properties, which is likely pulling interest away from suburban areas.
Moreover, the rise of remote work has surprisingly led to a preference for urban living among younger demographics. Even though people can work from home, many are choosing to live in cities. This is because urban areas offer vibrant lifestyles and amenities that are appealing to younger generations. Additionally, improved public transportation and infrastructure in urban areas like Oslo are making these regions more accessible and desirable, further increasing property values there.
Sources: TenantCloud, Deleiebolig
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) Affordable housing projects will help curb price increases in certain city areas
Affordable housing projects can help moderate price increases in some parts of the city by increasing the supply of housing, which is crucial in a market where demand is outpacing supply. In Oslo, for example, the introduction of rent-to-own models and co-ownership schemes has been explored as potential solutions to stabilize prices and make homeownership more accessible.
Experts predict that the introduction of more affordable housing options will help moderate price increases. A report from Columbia Threadneedle suggests that the housing sector is being transformed by demographic changes, but supply is not matching demand. This mismatch leads to higher house prices, and increasing the supply of affordable housing can help stabilize prices.
Additionally, demographic studies indicate that population shifts are occurring due to new housing availability. Oslo expects 5,100 more people each year until 2030, but there aren’t enough new homes for everyone, leading to a tight housing market. This demographic shift highlights the need for more affordable housing options to accommodate the growing population.
Sources: Deleiebolig, Columbia Threadneedle, Aparthotel
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.