Top 10 Locations for Overseas Property Investment - 10

Country:  Norway

Property in Norway

Regardless of when ‘peak oil’ actually occurs, if you think it will happen sooner rather than later, you might want to consider the Norwegian property market, coming in last, but definitely not least, on our list. The country has both oil and gas in abundance, helping to ‘fuel’ its economy and strengthen its currency, both positives for property investment.

The Norwegian population is around 4.8 million, up 8.4 per cent since 1995, and it is expected to increase by more than 1 million people (up 23 per cent) by 2050. Unemployment is very low at just 2.8 per cent and Norway’s exports of oil and gas have made it one of the richest countries in the world with a GDP per capita this year of NOK 483,725 (£42,635), according to Statistics Norway.

Unlike most European countries, the Norwegian government’s annual revenue vastly exceeds its annual expenditure. For example, in 2006 it made a ‘profit’ of £32.5 billion. In short, if Norway was a company, you would buy shares in it. So why not invest in property there?

The Norwegian Kroner is going from strength to strength because of its export surplus. In 2004 there were over 13 kroner’s to one British pound, but as recently as September 2008 there were less than 10 to the pound.

Over 40 per cent of the Norwegian population live in just four of the 19 counties. These are Oslo, Akershus, Hordaland and Rogaland. Purchasing costs are just under five per cent, including estate agent fees, so there are no further costs to consider when selling.

According to Statistics Norway, the average price of a ‘multi-dwelling’ house increased by 425 per cent between Q1 1993 and Q1 2007, while ‘row houses’ increased 300 per cent and detached houses by 200 per cent.

However, there has been a recent price correction for all house types, down 2.4 per cent in the year to Q3 2008, while apartment prices fell 5.4 per cent. The largest falls were in cities like Oslo and Baerum. The main reason prices have fallen lately is because new supply increased between 2004 and 2007. Statistics Norway monitors building starts in square metres per month and the average between 1997 and 2004 was 220-300,000. It reached 330,000 in 2004-2007 but is currently 280,000 and declining.
Average prices in Oslo, which has by far the largest population with 790,000 inhabitants, are currently £2,670 per square metre, which is relatively cheap if you earn a Norwegian salary.

First published in February 2009.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.