Our updates

Even after a long period of a strong rental market, new construction activity remains low in the Oslo area. Rising yields, high construction costs, and challenging financing have resulted in many projects being put on hold. Additionally, with weaker growth prospects for the rental market, new construction activity is likely to remain low for several years to come. 

Despite a strong rental market, no further newbuildings have entered the pipeline since last autumn. Rising yields and higher building costs have led to a number of projects being put on ice, and are thereby helping to keep office vacancy at a low level.

New office construction remains extremely low. We expect a total of about 160 000 m² to be completed in 2022-24 – in other words, an annual average of just over 50 000 m². By comparison, the newbuild volume has averaged 120 000 m² since 2000.

We are heading into a period with relatively few new office completions in Oslo. A slowdown in newbuild activity was expected, but is being reinforced by more uncertainty on several fronts.

While new office construction has been higher than normal over the past two years, the supply of new space will drop sharply in 2022. So office vacancy is expected to peak towards the end of the year before starting to decline again.