Over recent years, the price of property in Norway has increased at a steady rate, producing a national average of 7.5 percent. Of course, with a country that has so many different regions, it is not surprising that some areas perform better than others and that some of the faster growing regions have seen more boom growth
The Property Market in Norway
Introduction to the Norwegian Property Market
Norway is not a cheap option for foreign property investment. House prices are at an all time high in the country and the cost of living makes Norway a very expensive option for anyone looking for a cheap holiday abroad.
Having said this, Norway as a suitable location for property investment, has gained considerable interest, recently, with a healthy return in both capital and annual yield encouraging more people to buy in this naturally beautiful country.
Price Trends in Norway
Over recent years, the price of property in Norway has increased at a steady rate, producing a national average of 7.5 percent. Of course, with a country that has so many different regions, it is not surprising that some areas perform better than others and that some of the faster growing regions have seen more boom growth.
In particular, Oslo and the surrounding districts have done particularly well since 1999, primarily due to the volume of industry and financial services that now take place in the city.
Factors Encouraging Investment in Norway
Property investment in Norway has consistently and substantially outperformed the Oslo stock exchange, resulting in more people opting to put their money into property than ever before. In addition to this consistent (and encouraging) performance, the Norwegian property market has benefited from some very favourable tax treatments.
More recently, a growing concern has emerged that the stock market is going to stagnate further and this has driven the property market even higher. Since 2000, interest rates have risen in Norway, leading to an increased cost of borrowing. Further, transactional costs of buying and selling houses have also increased. This seems to have done little to slow the market and Norway has continued to enjoy strong price increases and a good rental return over the last decade.
The real estate market in Norway is traditionally seen as safe, which has encouraged more cautious investors. In order to practise as a real estate agent in Norway, it is necessary to obtain a licence which requires education to university level, as well as two years¡¦ experience in the relevant field. All agents abide by a code of conduct and have a continuing obligation of professional development.
The combination of good growth, political, economic and legal stability has resulted in a solid and profitable property market that looks set to continue for many years.
Norway is certainly not the cheapest location for property investors and has, therefore, traditionally been largely ignored;
prices in Norway continue to rise at a healthy rate and real estate investors are witnessing returns above and beyond the stock market;
Norway is also strong politically and economically, thus encouraging long-term investments from countries around the globe.