An overview of the real estate market of Norway

In Norway, there are no prohibitions on the purchase of real estate by foreigners, as well as on its lease. The cost of housing in the country has been steadily growing for many years. There was a slight decline in property values during the 2008 crisis, but the price level quickly returned to its previous level. The houses here are expensive, but if you are going to live in a small village, you can find properties at more affordable prices. Many buyers who want to live in the city buy apartments. Considering the high rents here, it is better to buy your own home in Norway. Norway is not very popular among Russian property buyers. Many factors force Russians to make a decision not in favor of this country - when buying real estate, foreigners do not receive visa benefits, besides, there are some of the highest rates on real estate tax here. About the country The population of Norway is about 5 million people, the area of the country is about 385,000 square meters. km. It is one of the least populated countries in Europe. The bulk of the population lives in the south of the country, with about 570,000 people living in Oslo, the country's capital. The largest Norwegian cities - Stavanger, Bergen and Trondheim - are home to about 25% of the population, or 1.2 million people in total. The country's currency is the Norwegian krone. In the 1960s. oil fields were discovered in Norway, and the country gradually began to become the largest producer of oil and gas in Northern Europe. Prior to this, the main sources of income in Norway were the fishing industry and shipping. For several years in a row, Norway occupied the first lines in the ratings of the countries with the highest living standards. In addition, it is one of the richest countries in the world, and its capital, Oslo, was recognized as the most expensive city for foreigners to live in in 2013. How to get Direct flights from Russia to Norway are operated by Aeroflot airlines on the Moscow-Oslo route five times per week, Norwegian en route St. Petersburg - Oslo twice a week and NordAvia en route Arkhangelsk-Tromso and Murmansk-Tromso. Real estate market The Norwegian housing market is stable. As in the rest of the Scandinavian countries, the Norwegian real estate market proved to be resilient to the 2008 crisis. The constant rise in house prices in the country is driven by high revenues from the oil and gas industry. The demand in the Norwegian housing market exceeds supply. The period from 2004 to 2007 is characterized by the largest growth in the Norwegian real estate market. From 2005 to 2006, the country's housing market recorded an annual growth in prices by an average of 10%. Having reached a peak in August 2007, as a result of the crisis, prices began to decline in the fall of 2008. But from January 2009, consumer confidence began to return, and prices began to gradually rise again. In 2009, the country's annual market growth returned to 10%. According to the Association of Realtors of the country Norges Eiendomsmeglerforbund, in February 2009 the cost per square meter in Oslo reached an average of 4500 euros per square meter. m. The price level in Norway has long since returned to the pre-crisis level. On average, a country house here now costs 500,000-700,000 euros, approximately 4000-5000 euros per sq. M. m. Houses with a view of the fjords are more expensive. In the northern regions of the country, prices are lower, but demand is also low. In December 2012, the cost per square meter for the year rose by 8.8%. Prices for apartments during this period in Norway increased by 10.2%, and for houses - by 6.4%. Now the annual rise in prices in the country is about 8%, so the authorities fear overheating of the real estate market. According to some experts, real estate in Norway is overvalued by 15-20%. According to statistics, property prices in the country are growing twice as fast as the income of the population. According to experts from the Nordea financial group, house prices in Norway in 2013 increased by 41% compared to December 2008 and by about 25% compared to summer 2007, when the country's market peaked. According to experts, a further rise in housing prices in the country is expected at 6.8% in 2013, 6.2% in 2014 and 5.9% in 2015. Geography of supply In Norway, the most expensive housing is sold in Oslo and other large cities of the country, while in rural areas in small settlements, property prices are lower. Foreigners buy real estate mainly in Oslo, Bergen, Stavanger. Prices in the capital vary from area to area - in the Frogner area, one of the richest in Oslo, dominated by 19th century buildings, apartments cost an average of 6,900 euros per sq. m, in Grunerlokka - 4600 euros per sq. m. New real estate in the city on average reaches 7500 euros per sq. m. m. Three-room apartment with an area of 125 sq. m in the Norwegian capital can be purchased for 800,000 - 900,000 euros. In Bergen, Norway's second largest city, the cost per square meter is 3500-3900 euros when buying a home on the outskirts of the city and 6500 euros in the central regions. In Stavanger, you can buy an apartment in the city center for an average of 5600 euros per sq. m, and on the outskirts - for 3700 euros per sq. m. For the purpose of further leasing, it is better to buy real estate in large settlements or in resort towns with picturesque nature, for example, in the ski resorts of Kongsberg, Trysil, Hemsedal, Geilo, Nurefjell, etc. HomesOverseas.ru