Cabin prices in Norway rose by a total of 5.5% in 2020. For sea cabins, the price rose by 11.5%.
The price of mountain cabins rose by 4.9%, while the price of inland cabins rose by 3.2%, according to figures from Eiendom Norge, Eiendomsverdi AS, and Finn Eiendom.
“There has been strong growth in the cabin market in the last 5-6 years, but the increase in both prices and sales volumes in 2020 exceeds everything we have seen before,” CEO Henning Lauridsen in Eiendom Norge said.
In 2020, 8,916 cabins were sold in Norway. That is an increase of 35.8% from 2019.
Out of the total, 4,739 mountain cabins, 2,697 sea cabins, and 1,604 inland cabins were sold. The largest turnover was in Trysil, Vinje, and Ringsaker municipalities.
Cabins by the sea most expensive
The typical holiday home now costs almost NOK 2.5 million. The sea cabins have the highest average price of just over NOK 3 million, while the mountain cost almost over NOK 2.5 million. The inland cabins cost an average of NOK 1.35 million.
“The price development reflects the supply side. The sharp rise in sea cabins follows from the fact that such cabins are a scarce commodity in Norway with limited supply due to the building ban in the 100-meter zone,” Lauridsen noted.
“In addition, there is a sharp tightening of the practice of the building ban, especially in the areas in the beach zone,” he added.
Retail market chief at Nordea Norway Randi Marjamaa says that the cabin market has been at least as active as the housing market recently.
“When the cabin ban was lifted in April, it took off completely. Since this summer, for example, mountain cabins have been sold at a pace we have not seen before.
“There are few second-hand cabins for sale, and those that come on the market disappear quickly,” she noted.
“In many countries, the suburbs around the big cities have seen a sharp upswing after the pandemic at the expense of the city centers.
“In Norway, we have not seen such differences in the housing market. Here, the need for more space has been expressed in the demand in the cabin market,” Lauridsen explained.
Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance
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