Prices of cabins in Norway soared in 2021

Both sales and prices of cabins in the Norwegian cabin market increased last year. 

The figures from Eiendom Norge show that prices for holiday homes rose by 7.3% in 2021. The typical holiday home in Norway now costs NOK 2,680,012.

In 2021, 8,549 second-hand cabins were sold in Norway, a decrease of 3.9% from 2020. However, there is strong growth in sales of large and expensive cabins, so the total turnover continues to increase.

“In the last 5-6 years, there has been a strong growth in the cabin market,” Henning Lauridsen, CEO of Eiendom Norge, noted.

Expensive cabins

The growth is particularly large for cabins with a price tag of more than NOK 5 million, with a turnover growth of as much as 21.4% from 2020. Compared with 2019, the turnover of such expensive cabins has more than doubled.

On average, it took 47 days to sell a holiday home in Norway last year.

Of the 8,549 sold cabins in the second-hand market, 4,338 were mountain cabins, 2,536 cabins were by the sea, and 1,675 were inland cabins.

Most sales were registered in Trysil, Ringsaker, and Vinje municipalities, while cabin prices were highest in Lillesand, Færder, and Tvedestrand municipalities. 

More newly built holiday homes

“In addition to the growth in the second-hand cabin market, there is a significant number of newly built holiday homes in Norway, mainly in the mountains,” Lauridsen said.

Figures from Statistics Norway show that permits were granted for 7,000 holiday homes last year, up from just under 4,500 in 2020.

Slow start to 2022

Lauridsen also noted that there are now signs that the cabin market is beginning to stabilize after two years of pandemic and increased interest in spending the holidays in Norway.

“So far, in 2022, 424 cabins have been sold in Norway, a significant decline from 2021, 2020, and 2019,” he noted, adding that electricity prices, higher interest rates, and rising construction costs are also helping to dampen sales.

Source : © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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