Norway’s Property Market Remains Stable as Investors Focus on Core Assets

Norway’s commercial property market showed steady performance in the third quarter of 2025, following a strong first half of the year. Investment activity slowed slightly during the summer months, reflecting seasonal trends, but remained consistent with broader regional patterns across the Nordics.

Total real estate transactions in Norway during the first nine months of the year reached close to NOK 47 billion. Although this represents a modest decline from the same period last year, the number of deals has increased, indicating that market interest remains resilient even under tighter financing conditions.

Activity was led by residential and retail properties, both of which saw increased investor focus. Housing assets accounted for nearly a quarter of total transaction volume this year, while retail investments expanded after several quarters of subdued performance. Among the notable transactions were the sale of a shopping centre in Bergen and the acquisition of major office and mixed-use properties in Oslo, underlining continued appetite for well-located assets.

Interest rates and borrowing costs remain key factors shaping investment strategy. The central bank reduced its policy rate earlier this year, but longer-term lending rates have edged higher, keeping financing conditions relatively demanding. Despite this, property values and yields have remained broadly stable, supported by equity-backed investors and selective acquisition strategies.

In the Oslo office market, rental levels and occupancy have stabilised after recent fluctuations. Demand continues to be driven by modern and energy-efficient buildings in central locations, while older premises face greater competition for tenants. Vacancy in the capital region has stayed within a moderate range, and new construction remains limited, helping to maintain balance between supply and demand.

Market analysts note that investors and occupiers alike are focusing on quality and sustainability. Developers are prioritising energy performance and adaptability in new projects, while investors are concentrating on long-term value rather than short-term yield shifts.

Overall, Norway’s property market continues to show resilience. With stable pricing, selective investor engagement and consistent tenant demand in prime locations, the sector appears to be moving through a period of consolidation rather than contraction as 2025 draws to a close.

Source: CBRE