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Investor Guide to Europe 2014
norway is a relatively small commercial real estate
market by size compared to larger countries across
Europe, although it is the second largest market by
stock in the nordics behind Sweden.
Despite its size it does benefit from relatively high levels of
liquidity, although the majority of investment is domestically
sourced. over the last ten years over 80% of investors has
been norwegian, rising to over 90% in a number of years.
This reflects the ease with which domestic investors are able
to trade with fellow investors. It is therefore hard for overseas
capital to be invested, except through a fund which has a
presence in the country or region.
Current invested stock and transactional activity is dominated
by private property companies. Institutions and pension funds
as well as listed companies are also active in the market. Due
to high growth in real estate since 1992, with the exception of
a few dips, norwegians have preferred to invest in property
instead of other types of investments. During 2013 we saw
growing interest from international investors looking to invest
in norway, mainly in the oslo CBD area. However foreign
investors still account for only a small portion of activity.
Debt funding is relatively easy to secure from domestic and
Scandinavian banks operating in norway as the market is seen
as stable.
Market sizing
norway
Europe
Invested stock*
(Total stock)
EUR 85bn
(EUR 180bn)
EUR 3,380bn
(EUR 8,150bn)
liquidity ratio*
(10y average)
6.0%
(5.5%)
4.0%
(4.5%)
2013 volumes
(10y average)
EUR 5.0bn
(EUR 3.5bn)
EUR 139bn
(EUR 135bn)
Investment activity by asset type, 2013
Source : DTZ Research
Investment activity by source of capital, 2013
Source : DTZ Research
Market pricing – oslo (Q4 2013)
office
Retail
Industrial
Current Yield 5.25% 5.25% 6.75%
Min/Max
(10y)
4.75-6.75% 5.00-7.25% 6.00-9.00%
Yield
definition
net initial yield
Source : DTZ Research
noRWaY
* 2012 figures
