The private broker has a completely different opinion, and says that unforeseen taxes and fees have created greater uncertainty among potential buyers.
Foreign cabin buyers mainly buy holiday homes in the mountains. Photo from Mosetertoppen in Hafjell. Photo: Jørgen Braastad / VG Published: Published:
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– It is justified to believe that the weak krone has attracted more foreign buyers to Norway. Perhaps they see an opportunity to finally realize the Norwegian cabin dream, while others may want to invest, says Carl Christian Mathiesen, senior analyst at the Prognosesenteret.
Foreign persons have accounted for four percent of all cabin purchases in Norway in the first half of 2023, preliminary figures from the Prognosesenteret show.
During the pandemic, these accounted for around one per cent of all cabin purchases, and close to two per cent in 2022.
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Figures from the Forecasting Center show that there are 16 per cent more foreign buyers now than at the same time last year. At the same time, the number of Norwegian buyers has decreased by 24 per cent, Mathiesen points out.
– There are clearly significant differences, he says.
Carl Christian Mathiesen, senior analyst at the Prognosesenteret. Photo: Kilian Munch
– Get more for your money
Tone C. Krange, segment manager for cottages at DNB Eiendom, says that they see a clear increase in foreign citizens investing in the Norwegian cottage market.
– We have seen this trend for a long time, that there are more foreign buyers in the Norwegian mountain home. Everyone is looking to Norway now that they get more for their money, she says.
Krange says that it is mainly Danes, Swedes and Dutch people who buy cabins in Norway. Among these, the mountain huts are the most popular.
– It is primarily the large alpine destinations that attract foreign buyers. These have good infrastructure and are easily accessible for those coming from the continent, she says.
Tone C. Krange, DNB Eiendom’s segment manager for cottages. Photo: Stig Fiksdal / DNB
Lower prices help
After years of pandemic, where the cottage market broke records, experts now see signs that the market in Norway is on the way back. Several have to sell their cottage to pay the mortgage.
In total, cabin prices in Norway fell by 4.3 per cent in the first half of 2023, according to figures from Eiendom Norge.
Tone C. Krange in DNB Eiendom says that lower prices help the interest among foreign buyers. At the same time, she is aware that the currency gives an extra “boost”.
– Climate also plays a role in why people come to Norway, which is fairly sure of snow. So there are several elements that come into play, she says.
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Carl Christian Mathiesen in Prognosesenteret says, like Krange, that most foreign buyers come from Sweden and Denmark.
– Innlandet county has the highest proportion of foreign buyers, with seven percent in total. In Trysil, 28 per cent of the buyers are from abroad, and is thus the municipality with the largest share, he says.
Unpredictability scares off buyers
Grethe Meier, managing director of Privatmegleren, has a completely different experience of what happens among foreign buyers.
– We do not recognize that there are more foreigners buying holiday homes in Norway. Many have thought that it would happen because of the weak krone, but our experience is that the opposite has happened, she says.
Meier says that Privatmegleren experiences greater uncertainty among foreign buyers now than before.
These cite, among other things, sudden tax increases and the fact that rich Norwegians are moving out of the country as reasons why they do not dare to buy a cabin in Norway.
– The lack of predictability with taxes and fees, and especially the fact that things come out of the blue, has made many people afraid of what might happen to the holiday home market, says Meier.
Grethe Meier, managing director of Privatmegleren, says that unforeseen measures from the government have made many people skeptical about buying a cabin in Norway. Photo: Skjalg Böhmer Vold
Boligtoppen notices this trend particularly well among those who look at the most expensive objects. These no longer go to foreign buyers, as they often did before, says Meier.
– One must be aware that those interested in the most expensive objects follow the markets in various countries. When more wealthy Norwegians leave the country, potential buyers get a more negative attitude towards Norway, she says.
Meier says that the trend of fewer foreign buyers has mainly come in the last year.
– The unpredictability is the worst, and what we see has the most impact, she says.
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2023-07-04 19:01:31
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