The doors are open: investing in Oslo goes viral
With one of the smallest populations in Europe, Norway climbed to number 5 in European real estate transaction volumes for 2015. Is there a surprise behind the rise?
“The real estate market in Oslo has been introverted and difficult to access for foreign investors for decades,” Oslo real estate veteran Thor Thoneie relates. “Now international attention has driven us to become more professional, and now the market is fully transparent and accessible. The proof is the growth in international investment we have seen over the last two years.”
Elin Mack Løvdal of the law firm BA-HR confirms: “With the rise in real estate prices, borrowed amounts are bigger and transactions are increasingly internationalised for both investors and lenders,” she reports. “Putting more down on the page forces lenders and borrowers to think through about issues in more detail than they may have been accustomed to in Norway.”
BA-HR grew to be one of the largest players in the European real estate market in 2015, advising on transactions for more than NOK 112 billion. Their mantra: transparency, efficiency, profitability, and accessibility.
“To these I would add solidity and stability in the market as the most important reasons for recent growth,” says BA-HR senior partner Stig Bech.
Don’t mention the oil
Though Norway is strongly impacted by the current low price of oil, Oslo’s macro-economy is only marginally affected. “Oil income makes up only a small percentage of Oslo’s economic base,” Thoneie tells. “There are some parts of the city feeling the pressure, but prices are still rising in most of the region.”
“I believe most serious foreign investors have their main focus on macro-economics and megatrends, not cyclical fluctuations. They have done their analyses and are looking to Norway and the Oslo region to perform in a long-term perspective,” he concludes.
He mentions London’s world-leading financial sector as one key in the recent rise of Oslo: “Most international transactions in Oslo go through companies in London. They do the analysis and make the recommendations, and handle the money. This is good quality assurance for buyers, but it’s also a seal of approval for Oslo.”
Stig Bech adds an important transactional aspect: “Norway’s legal framework is highly liberal and transparent. It’s easy to assess and easy to navigate. Most Norwegian background legislation can be waived between professionals. The market is characterised by established legislation and broad use of standard agreements.”
Thoneie tops off by confirming that there is there is still a great deal of attractive property on the market: “There are still plenty of objects are out there for the players who have not achieved their desired position in Oslo.”
For more information, contact Christina Dupré Roos,
