Norway Real Estate Market Outlook 2022

The Norwegian economy has recovered strongly, with mainland GDP rising above pre-pandemic levels. The trend is expected to continue in 2022. Mainland GDP will grow by 4.2 % driven by strong consumer spending and business performance.

The investment market had an all-time high in 2021 with investment volumes of NOK 160.6 bn, a substantial 38 % year on year growth. Office was the dominating sector with 43.1 % of total volume. We expect the investment volume to normalize in 2022 but remain above 2019-levels. Growth in occupier demand will contribute to moderate increase in leasing activity and rental levels. We expect vacancy to edge further down in 2022.

The role of ESG is expected to continue to increase in 2022. Investors and occupiers will prepare for a carbon-constrained world and increased regulations. This will have a profound impact on property selection.

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