Rental prices in Norway's largest cities have experienced historic growth in the first quarter of 2023, with the highest increase in Oslo. According to fresh figures from Eiendom Norge (Real Estate Norway), prices in Oslo have increased by 11.9% compared to the first quarter of last year. The average rental price growth in the four largest Norwegian cities has risen 4.4% from the fourth quarter of 2022 to the first quarter of 2023, and 10.4% over the past year.
Henning Lauridsen, CEO of Eiendom Norge, states that they have never before measured such strong growth in rental prices in Norway. In the first quarter of 2023, Oslo had the strongest development with an increase of 5.3%, followed by Bergen with an increase of 4%. Stavanger had a more moderate growth of 1%, while rental prices in Trondheim fell by 1.1%.
The annual growth in rental prices was 7% in Stavanger and Sandnes, 6.3% in Trondheim, and 2.6% in Bergen. Lauridsen points out that many landlords are now adjusting rental prices upwards due to increased costs and higher interest rates. Eiendom Norge expects rental prices to continue to rise.
Despite the strong growth, the supply of rental properties has increased slightly and is now stable at a normal level. At the end of the first quarter of 2023, there were 2854 properties for rent on Finn.no in the major cities.
Eiendom Norge warns against the Tax Committee's proposal to increase property taxes and remove tax-free rental income from a portion of one's own property. Lauridsen believes that taxing small-scale private rentals will reduce the supply of rental properties and lead to even higher rental prices, which often affects the weakest households.
Sources: Eiendom Norge, dn.no
