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PROPERTY

Where in Norway are house prices rising the fastest?

The growth of property prices in Norway this year has surpassed what many industry experts expected, but where in the country are they rising the fastest?

Published: 5 June 2023 16:08 CEST
Updated: 15 June 2023 10:19 CEST
Oslo building
Photo by Marta Santos on Unsplash

Towards the end of 2022, most Norwegian commentators and analysts following the real estate industry agreed that 2023 would be characterised by a cooling housing market, with lower prices.

However, actual market developments have proved these forecasts wrong already and Norwegian households have shown that they are better equipped to handle higher interest rates than what even the central bank (Norges Bank) predicted.

READ MORE: The biggest issues facing first-time home buyers in Norway in 2023

Several factors are currently keeping housing prices high, including high wage growth, a high degree of job security, increased population growth, and, especially thee low number of new houses being built.

The latest housing price figures

House prices in Norway increased by 0.8 percent from April to May of 2023, according to the latest figures from Real Estate Norway (Eiendom Norge), but certain parts of the country are seeing prices rising faster than others.

Notable price hike in the capital

In Oslo, house prices have notably risen over the past six months. So far this year, prices in the capital have risen by 7.3 percent.

Due to price dips late in 2022, housing prices in Oslo are now 0.5 percent higher than they were 12 months ago. Still, that is 0.2 percent higher than the previous all-time high registered in August last year, according to the newspaper Dagens Næringsliv (DN).

Managing Director Carl O. Geving of the Norwegian Association of Real Estate Agents (NEF) pointed out that Oslo prices are so high that many people will likely struggle to take out loans.

“A lot of people will struggle to secure financing when the prices per square metre are over 92,000 kroner on average and the mortgage interest rate is approaching five percent. This will probably limit price growth in Oslo in the near future,” Geving said.

Strongest price growth in Kristiansand and Stavanger

The historic region of Romerike, in south eastern Norway, registered the most vigorous seasonally adjusted price development (meaning that prices were modified to take into account seasonal fluctuations such as higher prices in the Spring/Summer and lower prices in Autumn/Winter). In May, prices in Romerike rose by 1.1 percent, according to Real Estate Norway.

Bodø and Fauske had the weakest seasonally adjusted price development, with a seasonally adjusted price decrease of one percent.

So far in 2023, the biggest price rises were seen in the southern Norwegian cities of Kristiansand and Stavanger (with their surroundings), with an increase of 12.5 and 11.8 percent, respectively.

The weakest development so far this year was seen in the northern city of Tromsø, with an increase of 4.4 percent.

“So far this year, Kristiansand and Stavanger and their surroundings stand out with great growth in house prices. Kristiansand has long had a price level well below the other medium-sized cities in Norway. Now, however, the price level in Kristiansand is about to rise to the same level as the other cities in Norway,” Lauridsen said.

“Unfortunately, new home sales are still very weak. Hopefully, the robust developments in the second-hand housing market will, at some point, also spill over into the market for new housing, provided that the builders manage to get control over the costs.

“There is a need for new homes, and they are not currently being built. It is absolutely necessary to build enough homes in Norway so that we avoid imbalances in the housing market further along the road,” the head of Real Estate Norway said.

It took an average of 35 days to sell a home in Norway in May, down from 40 days in April.

Moderate price changes expected in coming months

Real Estate Norway expects price growth to slow down in the months ahead.

“Many homes were sold in May, and so far this year, more second-hand homes have been sold in Norway than at the same time in 2022.

“There has also been great growth in the number of new second-hand homes on the market throughout the month. This indicates a more moderate development in house prices in the coming months,” Lauridsen said.

“So far this year, house prices have risen far more than everyone expected at the start of the year. If things follow typical patterns and fall through the autumn, we will probably end up with an increase of 3-4 percent in 2023,” he said.

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PROPERTY

From BBQs to laundry: What you can (and can’t) do on your balcony in Norway

Unlike in townhouse areas in Norway, where disputes may revolve around parking, trees, or hedges, in apartment complexes, the focus often shifts to what is allowed on balconies.

Published: 22 May 2024 11:45 CEST
From BBQs to laundry: What you can (and can't) do on your balcony in Norway

If you’re living in a multi-story family house that you own outright, chances are you’re not losing sleep over how your balcony barbecue might impact your neighbours.

However, if you’re part of a Norwegian housing association or condominium – a popular choice among homeowners in the country – you’re likely living in close quarters with your neighbours.

READ MORE: The key things you need to know about Norwegian housing associations

This proximity can sometimes lead to conflicts, with balcony use emerging as a familiar battleground.

From barbecues to laundry and open fires, there’s no shortage of potential points of contention.

The general rules

There are no laws specifically regulating what you can or can’t do on your balcony.

However, several pieces of regulation regulate what is considered acceptable behaviour in housing associations, as well as safety concerns when it comes to balcony use.

For example, the Housing Association Act (Lov om burettslag) prescribes that you can’t act in a way that would inconvenience others. 

On the other hand, you’ll find that many Norwegian housing associations have their own set of rules regarding what is considered acceptable when it comes to balcony use.

Making changes to the balcony itself

Generally speaking, you can’t make alterations to the balcony – such as, for example, closing it off with glass walls – without considering its impact on the building’s facade.

As the facade isn’t solely yours, you will need to ask the board of your housing association for approval of any, for example, construction interventions.

Furthermore, many housing associations have clearly defined rules concerning balcony aesthetics, which aim to maintain a cohesive building appearance.

If you end up in a disagreement with your housing association, make sure to read The Local’s guide with tips on how to navigate the process.

How can I get more privacy on my balcony without going through housing association approvals?

Plants can often be an effective solution to increasing privacy on balconies when you want to avoid the hassle of submitting an official request for more comprehensive interventions to your housing association’s board.

Large pots filled with plants can offer ample protection, and there’s usually little restriction on having plants on a balcony.

However, keep in mind that having plants, too, should be done within the realm of good taste – your balcony can’t look like a jungle from the outside.

Can I have a barbeque on my balcony?

While there are no general prohibitions on using barbecues in Norway (unless a ban on outdoor fires is in place), Norwegian housing associations often regulate their usage to mitigate risks.

OBOS, Norway’s largest housing association, typically permits electric and gas grills but imposes restrictions on charcoal grills due to safety considerations. Furthermore, many associations limit the number of gas bottles you can keep on your balcony. 

Some associations also designate barbecue areas in communal outdoor spaces.

You’ll usually be able to find the information regarding barbecue rules through your association’s websites, Facebook group, or hallway notices.

Before lighting up your grill, consider factors like wind direction, neighbouring units, and permissible barbecue types.

Can I dry my laundry on my balcony?

Drying laundry on balconies, though seemingly mundane, can also provoke disputes among residents.

There is no blanket rule here. In some housing associations, for example, in parts of Bærum or Oslo, the association bylaws prohibit or restrict drying laundry on balconies, limiting it to specially designated drying rooms.

However, these examples are seemingly the exception rather than the rule – meaning you should be in the clear. 

Pictured is a clothes peg.

You should be fine to dry your laundry on your balcony. Photo by Photikus Production on Unsplash

Can I smoke on my balcony?

Once again, Norwegian housing associations have the authority to establish smoking rules on balconies.

Here, the key consideration is the widespread negative social attitude toward secondhand smoke (you’ll see warnings about secondhand smoke throughout Norwegian cities – for example, many bus stops and awareness video campaigns that run in buses will point to this issue).

So, while smoking in private residences falls outside legal regulations, know that even if the law and your housing association allow it, you might raise an eyebrow or two from a neighbour if you smoke on a balcony that is close to their windows or balcony.

What about satellite dishes?

You should be fine when it comes to installing a satellite dish on your balcony – most housing associations allow it.

Sunbathing 

If you wish to sunbathe on your balcony, with or without clothes, you may be in the clear as long as the housing association has no rules stating otherwise. 

There is no law in Norway which expressly forbids being naked. However, it is a criminal offence to display sexually offensive or other indecent behaviour in the presence of or towards someone who has not consented to it.

Sunbathing generally isn’t considered “sexually offensive”, but if your neighbour has a problem with your nudity, it could be considered a breach of the Neighborhood Act. 

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