● THE NORWEGIAN PROPERTY MARKET NEWSEC PROPERTY OUTLOOK • AUTUMN 2021
THE NORWEGIAN PROPERTY MARKET NOTHING CAN BRING DOWN COMMERCIAL PROPERTY 2020 and is projected to level beneath 3% by the end of this year. The GDP growth in mainland Norway in 2021 is expected to amount to 3.6% and growth in the mainland economy is expected to be back at its pre-pandemic level by the end of 2021. Low interest rates and a continued expansionary fiscal policy are the key drivers of growth.
transactions, such as the bidding war for Entra, as well as portfolio and single property transactions. The market has also been boosted from several delayed projects which were pushed from 2020 to 2021. With a continued flow of capital onto the market, 2021 is set to reach record high volumes of NOK 140 billion.
The real estate market in Norway has performed exceptionally well during the year and Q2 showed record high volumes at over 50 billion NOK. The volume has been driven by both M&A
Contact: Øyvind Johan Dahl ojd@newsec.no
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Due to a higher infection rate and stricter measures to contain the virus, the recovery in Norway was slightly suppressed at the beginning of 2021. However, as the year progressed the Norwegian economy has shown great promise and Covid-related restrictions will cease sometime in the fall. Underlying inflation passed the target of 2% in 2020 but has edged off during the year as the NOK strengthened. The CPI 12-month November figure is projected to come in as high as 4%. By the end of 2021 unemployment is expected to have seen a sharp decline from the high numbers observed in
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