Norway real estate market is seeing a revival due to the lower interest rates in the economy. There is a price rise for all types of Norway real estate listings and across all dwellings much like the increase in the prices for the international real estate. Norway is one of the countries of the European Union that has really managed to come out the recession relatively unscathed. This is due to the fact that the country had a sound management of its fiscal resources including those that came from the vast reserves of its oil and natural gas industry.
Not many countries have had the right kind of fiscal management which led to the debt ballooning in various countries and a steep fall in the prices for international real estate for sale especially in the US and the UK. The Norway real estate market has surged ahead by 9% in the second quarter of 2010 according to the latest statistics that have been revealed by the country. The housing market and the Norway real estate forsake have actually performed well through 2009. Corresponding to the fall in the prices in international real estate for sale, the prices for Norway real estate listings also fell during mid 2007 – 2008.
The Norway real estate sale prices for row houses has increased at the rate of 10%, detached houses at 9. 2% and the multi dwelling houses rose by 8%. All rates are YOY basis. The Norway real estate market differs from one region to another. While some regions have experienced a higher growth rate such as Stavanger (16. 8%), Bergen (14. 6%), Trondheim (11. 6%), others such as Western Norway real estate (3. 6%) haven’t experienced such high growth rates. The interest rates for mortgage are quite low (at near 2004 – 2005) rates and this has helped the Norway real estate to grow better than other countries that are present in the European Union.
The GDP growth hasn’t been appreciative, but mirroring the economic recovery, the GDP is supposed to grow n the next year. This augurs well for the real estate in Norway. The wages are set to increase by 3. 4% by 2011 and the unemployment levels are at the lowest in Europe at 3. 7%. The combination of all these factors will cause cheer for the Norway real estate. The Norway rentals have a really low yield and are only a max of 5% in the whole country. Monthly rentals for Oslo are around 750 Euros and will go up to 2400 Euros depending on the size of dwelling that is up for rent. The Norway rentals tax is also quite high and non residents are taxed on the rent from income at a flat 28%. Other tax rates including capital gains tax and inheritance tax are also quite high.