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Norwegian Legal Summary of 2023: Real Estate

Despite the uncertainty related to inflation and the interest rate in 2023, the predictions of an interest rate peak will hopefully and most likely have a positive effect on the investments in the real estate market in the coming year.

The Norwegian real estate market in 2023 has been characterized by uncertainty regarding inflation and interest rates. The key interest rate is right now at 4.5%, which is the highest rate since the financial crisis in 2008. As a consequence of the aforementioned uncertainty, we have seen decreased investments in the real estate market in 2023 compared to recent years. According to the last known reports and statistics, the total transaction value as of December has surpassed NOK 44 billion in 2023, which is a decrease of 55% since last year.

However, the inflation has fallen, the weakening of the Norwegian currency seems to have stopped and the predication is that we have reached an interest rate peak. These are all factors which are likely to give the market a solid basis to pick up again.

We have experienced a more modest activity in the transaction market this year compared to previous years. However, the demand for SVW’s services in commercial real estate, transaction and project finance has picked up in Q3 and Q4. We are hopeful that this trend will continue into the new year.

During this year we have assisted, among others, Rimfeldt Eiendom AS, Coop Norge Eiendom AS, Njord Securities AS, and Wilog AS in purchasing different properties in all parts of Norway. We also assisted in the sale of BER Bygg og Eiendomsrevisjon AS. We look forward to assisting our clients in more transactions in the coming year.