Norway Outlook 2023
February 9, 2023
- The Norwegian CRE investment market experienced a year of two halves as transaction volume in the first half of 2022 nearly matched the exceptional 2021. Changed market conditions changed in the second half of the year and activity slowed down as interest rates started to rise on the back of soaring inflation.
- Norwegian economy was resilient and surprised positively in 2022. Falling energy prices has lightened the inflation outlook, but business and consumer confidence indicators points to challenging times ahead. Household economy is under pressure from increased interest rates and inflation.
- Investment activity is expected to remain slow in the beginning of 2023 but could be set for a recovery in the second half of the year as price expectations stabilizes. Availability and cost of financing will be key to activity. We expect cross-border activity to increase as NOK hedging cost is decreasing.