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The investor search for risk-adjusted returns contributed to a rise in investment activity

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2015 was an extremely good year for the Norwegian investment market, breaking the previous all-time high by a significant mar- gin. Domestic and global investor search for products and yields at perceived risk-adjusted returns resulted in a wave of capital flowing into the Norwegian real estate market. This contributed to an in- crease in investment activity and a pro- longed prime yield compression.
During 2015 the prime yield fell from 4.75% to 4.25% at the end of the year. The office segment represented some 52% of the total transaction volume while retail ac- counted for 33%.
Nearly half of all transactions in Norway occurred in and around the Oslo metropolitan area and foreign investors accounted for approximately 43% of total investment nationwide during 2015.
It is anticipated that the market will see a moderate slowdown in 2016, but it is still expected to be a very good year on an historical basis.
However, some sub markets like Stavanger will probably go in the opposite direction, undermined by higher unemployment and falling property values. 

Source : BNP Paribas Real Estate

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