Oslo's rental yields are low(ish) - max of 4.6%
Residential Valuation Specialist | March 31, 2018
|Last Updated: Mar 31, 2018|
|OSLO Apartments||COST (€)||YIELD (p.a.)||PRICE/SQ.M. (€)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|45 sq. m.||352,890||1,357||4.62%||7,842||30.16|
|75 sq. m.||606,450||1,794||3.55%||8,086||23.92|
|120 sq. m.||979,440||2,556||3.13%||8,162||21.30|
|Oslo apartments ( price plus fellesgjeld)|
|45 sq. m.||361,980||1,357||4.50%||8,044||30.16|
|75 sq. m.||619,275||1,794||3.48%||8,257||23.92|
|120 sq. m.||993,720||2,556||3.09%||8,281||21.30|
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Districts researched: Bygdoy-Frogner, Grünerløkka - Sofienberg, St.Hanshaugen - Ullevål, The Sagene-Torshov, Uranienborg - Majorstuen
Source: Global Property Guide
Yields for residential properties in Oslo range from 3.1% to 4.6%, with smaller properties yielding more than larger properties. After 8 years of continuous house price increases in Norway, Oslo´s residential property prices are very high, making Oslo the world´s 17th most expensive city in which to buy a home but this year there has been a decline in prices.
Properties in Oslo may cost around €7,500 to €8,300 per sq. m., depending on the size of the property, and with wide variations outside this band; monthly rents are around €1,300 to €2,600 for properties in Oslo between 45 square metres (sq. m.) and 120 sq. m.. Bergen and Fjords´ property markets of course offer cheaper alternatives.
In terms of residential prices, we believe that Oslo is the eighth most expensive capital in Europe, and not surprisingly has some of the lowest rental yields of any of Europe´s capitals. Transaction costs are low in Norway.