Residential Real Estate - Norway

Norway

The Residential Real Estate market market in Norway is anticipated to achieve a value of US$2.36tn in 2024.
This sector is projected to exhibit a compound annual growth rate (CAGR) of 1.96% from 2024 to 2029, leading to a market volume of US$2.60tn by 2029.
When compared globally, China is expected to generate the highest value in the Real Estate market, reaching US$112.9tn in 2024.
Norway's residential real estate market is experiencing a surge in demand due to an increase in remote work opportunities and a desire for spacious and nature-oriented living environments.

Key regions: Europe, Brazil, France, Asia, United States

Market

Region

Region comparison

Currency

Analyst Opinion

The Residential Real Estate market in Norway is experiencing significant growth and development in recent years.

Customer preferences: Norwegian homebuyers have shown a strong preference for properties located in urban areas, particularly in the capital city of Oslo. This is due to the convenience and accessibility of urban living, with amenities such as shops, restaurants, and public transportation in close proximity. Additionally, there is a growing demand for energy-efficient and environmentally-friendly homes, as sustainability becomes an important factor for buyers.

Trends in the market: One major trend in the Norwegian Residential Real Estate market is the increasing popularity of apartment living. As land becomes scarce and more expensive in urban areas, developers are focusing on constructing high-rise apartment buildings to accommodate the growing demand for housing. This trend is also driven by the desire for a low-maintenance lifestyle and the availability of modern amenities in apartment complexes. Another trend is the rise of smart homes. With advancements in technology, homebuyers are increasingly looking for properties that are equipped with smart features such as automated lighting, heating, and security systems. This trend reflects the growing importance of convenience and comfort in the modern home.

Local special circumstances: Norway has a unique geographical landscape, with stunning natural beauty and a high standard of living. This has led to an influx of foreign investors who are attracted to the country's real estate market. Foreign buyers, particularly from neighboring Scandinavian countries and the European Union, are investing in properties for both personal use and as rental investments. This has contributed to the overall growth and development of the Residential Real Estate market in Norway.

Underlying macroeconomic factors: The strong Norwegian economy and low interest rates have also played a significant role in the development of the Residential Real Estate market. With a stable economy and low borrowing costs, more individuals are able to enter the housing market and secure mortgage loans. This has increased the demand for properties and driven up prices. Additionally, the government's favorable policies and incentives for homebuyers, such as tax benefits and subsidies, have further stimulated the Residential Real Estate market. These measures have made homeownership more accessible and affordable, encouraging more individuals to invest in real estate. In conclusion, the Residential Real Estate market in Norway is experiencing growth and development due to customer preferences for urban living, the popularity of apartment living, the rise of smart homes, the influx of foreign investors, and underlying macroeconomic factors such as a strong economy and favorable government policies.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.