'Landlords market': Rent prices in Norway's biggest cities continue to rise

Robin-Ivan Capar
Robin-Ivan Capar - [email protected] • 9 Nov, 2022 Updated Wed 9 Nov 2022 10:10 CEST
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Fewer rental properties, a "colder" market for real estate sales, and increased living costs and interest rates have all contributed to rising rent prices in Norway.

Managing director Geir Skogheim at the Utleiemegleren rental agency said that rent prices in Norway's biggest cities continued to rise in October.

"More people choose to rent rather than buy, and in the biggest cities, we are experiencing a huge influx of customers who cannot sell their home and who are instead considering renting out," Skogheim says.

Demand is exceptionally high in the capital, where there has been a shortage of rental housing for several months. The shortage is reflected in the rent prices. Current conditions led to the group dubbing the market as a "landlords market". 

READ MORE: Rising rents and a shortage of homes: Why now is a hard time to rent in Norway

Rent prices in Oslo up around 10 percent compared to last year

On average, a 1-room apartment in Oslo cost 11,030 kroner in October, an increase of 0.6 percent from September. Compared to the same month last year, the rent price increased by 9.6 percent.

Rent prices in the capital also increased for 2- and 3-room apartments. A 2-room apartment cost an average of 14,791 kroner in October, an increase of 0.2 percent from the previous month. Compared to October last year, the rental price for 2-bedroom apartments increased by a whopping 9.4 percent.

When it comes to 3-room apartments, the average rent price increases by 0.5 percent compared to last month. However, compared with last year, it increased by as much as 10.1 percent. The average price for a 3-room apartment in Oslo in October amounted to 18,755 kroner.

Unusually "hot" rental market in Bergen

A 3-room apartment in Bergen cost an average of 13,795 kroner in October. Compared to the same month in 2021, the price increased by 4.8 percent.

While experts expected the rental market in Bergen to cool down this autumn, market activity in October was higher than expected. The Utleiemegleren rental agency rented out almost 22 precent more homes in October than in September.

Furthermore, the general manager of Utleiemegleren Bergen, Eirik Hove, says that clients are contacting the agency because they cannot sell their homes.

"Multiple homeowners who decided to sell their home in the summer failed to do so... It is clear that the recent increase in interest rates and costs is affecting the rental market," Hove noted.

Prices on the rise in Kristiansand, Stavanger, and Trondheim

In the Kristiansand region, the rental market was fairly typical in October, with rising rental prices.

The same trend is also present in Stavanger, where the average price for a 2-room apartment was 11,139 kroner this year, which is 6.3 percent higher than last year's average (10,481 kroner).

In Trondheim, a 2-bedroom apartment cost 12,100 kroner on average in October. Compared to September, that is an increase of 1.7 percent.

The rental price increased by as much as 5.7 percent compared to the same month last year.

Rental prices also continued to rise in other parts of the country as more Norwegians chose to postpone the purchase of a home as a result of uncertain times and multiple crises, Utleiemegleren pointed out.

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Robin-Ivan Capar 2022/11/09 10:10

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