January will be a historically strong month for home prices in Norway, and on a national basis, house prices will rise by 7.5% in 2021, the industry association Eiendom Norge predicts.
Henning Lauridsen, CEO of Eiendom Norge, told newspaper Dagens Næringsliv that the interest rate would be the central driver in the housing market next year – as was the case this year.
“Despite this, we believe that the travel restrictions in combination with the zero interest rate will increase the demand for housing in Norway, which will result in higher housing prices,” Lauridsen said.
An element of uncertainty
He emphasized that there is an element of uncertainty as to whether Norges Bank will raise interest rates earlier than expected due to strong growth in house prices.
Eiendom Norge predicts that Oslo will have the largest price increase out of the big cities, with 9.5%.
They predict Bergen will follow with 6%, Trondheim with 5%, and Stavanger with 4.5%.
© NTB Scanpix / #Norway Today