Oslo: High Real Estate Prices – Will the Growth Continue?

In recent years, Oslo’s real estate market has shown a steady increase in property prices, causing concern among potential buyers and investors. According to forecasts, this trend is expected to continue into 2025.
Current Real Estate Prices in Oslo
As of early 2025, the average property price in Norway is approximately 4,245,124 NOK (around €400,000). However, prices in Oslo are significantly higher, with the average cost of an apartment reaching €8,160 per square meter. This means that an apartment of 100 m² in the capital will cost around €816,000.
Examples of Properties for Sale in Oslo
Here are some real estate listings available in Oslo:
• Two-room apartment in Frogner, Oslo: 70 m², €650,000.
• Three-room apartment in Grünerløkka, Oslo: 85 m², €750,000.
• Four-room apartment in Majorstuen, Oslo: 120 m², €1,100,000.
• House in Holmenkollen, Oslo: 200 m², €2,500,000.
• House in Ekeberg, Oslo: 150 m², €1,800,000.
Price Forecasts for 2025
According to Eiendom Norge, real estate prices in Norway are expected to rise by more than 10% in 2025. The most significant increases are forecasted in major cities such as Oslo, Bergen, and Stavanger. Specifically, in Oslo, prices are projected to increase by 12%.
Factors Driving the Price Increase
Several key factors are contributing to the rising property prices in Oslo:
1. Lower Interest Rates – The Norwegian Central Bank is expected to cut interest rates, making mortgages more affordable for buyers.
2. Low Housing Construction Rates – In recent years, a decline in new housing projects has led to a limited supply, increasing demand.
3. Economic Growth and Rising Wages – A low unemployment rate and increasing wages are boosting the purchasing power of Norwegian residents.
4. Eased Mortgage Lending Requirements – Banks are becoming more flexible with mortgage approvals, making homeownership easier for buyers.
Oslo’s Rental Market
Oslo is also Norway’s most expensive city for renters.
• The average rental price for a one-bedroom apartment in the city center ranges between €1,300 and €1,600 per month.
• In suburban areas and smaller cities, rent prices are lower.
In Bergen, a one-bedroom apartment starts at €950 per month.
In Trondheim, it starts at €1,050 per month.
Impact on Buyers and Investors
For prospective buyers, rising housing prices in Oslo mean greater financial planning is required, and some may consider alternative locations outside the capital.
For real estate investors, the situation presents a lucrative opportunity for long-term investments, given the expected price appreciation in the coming years.
Given current trends and market forecasts, Oslo’s real estate prices are expected to continue rising in 2025.
Potential buyers and investors should closely monitor market developments and influencing factors to make well-informed decisions.