Housing prices rose higher last month than they have for many years, as Norway’s booming real estate market extended even into the usually slow summer holiday season. The Corona crisis still hasn’t lowered prices either, and they’re highest of all in the nation’s capital.
Prices averaged NOK 78,433 (USD 8,700) per square meter in Oslo last month, compared to NOK 42,233 per square meter on a national basis. Prices rose 0.4 percent from June to July, and were thus 5 percent higher than they were a year ago.
Norway’s national real estate organization Eiendom Norge links the latest rise that it announced this week to rock-bottom interest rates that have made it even more attractive to borrow, along with strong demand especially in the country’s larger cities. Real estate investments have also simply continued to deliver much higher returns than other investments for the past several years, with few analysts predicting any major slowdown despite relatively high Corona-induced unemployment.