Subscribe

Norway's red hot real estate starts to cool

Norway has experienced more than two decades of growth in its residential housing sector – but is the real estate bubble about to burst?

  • close
    A row of wooden houses are reflected in the still waters of a fjord in western Norway October 6, 2007.
    View Caption

Norway’s residential housing sector is cooling after more than two decades of strong growth, interrupted by only a slight dip in 2008. High personal debt levels and hand-wringing over a potential bursting of a real estate bubble have Oslo taking some cautious corrective steps.

In the short term, the changes are contributing to modest price declines and an end to the heyday of bidding wars and one-day sales. But the logic of real estate investment in Norway remains compelling, says The Christian Science Monitor's Oslo-based correspondent, who is not expecting a crash with long-term effects.

“Everybody sees there is going to be a correction, it’s unsustainable,” says our correspondent. But “it’s just a correction in the market and a slower growth. Long term, I think it’s still going to be a very stable investment.”

Not everyone is so sanguine. Looking at the broader Scandinavian picture, American economist Paul Krugman is sounding the alarm about high consumer debt loads in the region. Expensive housing is a big part of those debts, and that has him concerned.... For the rest of the story, continue reading at our new business publication Monitor Frontier Markets.

Share this story:
 
 
Make a Difference
Inspired? Here are some ways to make a difference on this issue.
FREE Newsletters
Get the Monitor stories you care about delivered to your inbox.
 

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK