Brokers predict up to 25 percent more expensive apartments in Oslo


So far this year apartments in Oslo have become 14.4 percent more expensive. Brokers predict an average price growth in 2016 of up to 25 percent.

On Monday  Property Norway released its figures for house prices in August, but Dagens Næringsliv has asked a selection of senior brokers in the capital to look a bit further ahead.

CEO Grete W. Meier in PRIVATmegleren is the one that comes with the highest forecast.

– I think unfortunately that  prices for apartments in Oslo will rise by more than 25 percent in 2016.
DNB Property CEO Terje Halvorsen is somewhat more modest on behalf of the housing market in the capital, but says he will not be surprised if the rise is more than 20 percent by the year’s end.

Inflation over the twelve months to July was 15.5 percent. Odd Nymark at EiendomsMegler 1 Oslo think the annual increase for 2016 will end just below it, and predicts a 15 percent incrase.

A rise in prices of up to 25 percent is a clear bubble signal, said chief economist Kari Due-Andresen at Handelsbanken Capital Markets.

– House price has in previous pressurised periods reached inflation of over 20 percent year on year, so we cannot rule out that such a thing will happen again. But if so, I would say there is a great danger that you get a correction afterwards, she told the newspaper.


Source: NTB scanpix / Norway Today