There are a few things as Norwegian as a cabin, with the country’s fondness for these holiday homes, typically found by the coast or up in the mountains, being reflected in strong price growth in 2021.
Last year cabin prices in Norway rose by 7.2 percent, according to figures from Real Estate Norway (Eindom Norge). High price rises followed the previous year when demand for holiday homes exploded due to the pandemic.
“This increase in prices and sales of property in the cabin market, which started in 2020, continued through 2021,” Henning Lauridsen from Real Estate Norway told financial media site E24.
The average price of a holiday home in Norway is now around 2.68 million kroner, according to the real estate firm.
Cabins up in the mountains saw the most significant price increases. The prices for these holiday homes rose by 10.1 percent. Holiday cottages by the coast saw a more modest increase of 2.6 percent, while cabins found more inland saw their values rise by just under 10 percent.
More than 8,500 cabins were sold last year, a small reduction compared to 2020 of 3.9 percent. However, the lower sales figures may be due to interest rate hikes.
“The fact that interest rate increases were introduced and that society began to reopen in the autumn probably reduced the volume of sales a lot,” Lauridsen explained.
Trysil, Ringsaker and Vinje were the areas where the most cabins were sold, while the priciest holiday homes were found in Lillesand, Færder and Tvedestrand.
Despite soaring prices and massive demand over the last few years, the number of cabins sold may be on their way back down this year.
“So far, in 2022, 424 cabins have been sold. This is a significant decline from 2021, 2020 and 2019,” Lauridsen said.