Highest rents in Oslo and Bærum
The Rental market survey 2012, measured in the fourth quarter, shows that tenants living in Oslo including Bærum pay the most for rented dwellings per square meter. The survey also shows that several factors beyond geographical location contribute to the rent level, including letting status and period of tenancy.
|Average monthly rents||Average annual rents per sqm|
|1Excluding Oslo, Bergen, Trondheim, Stavanger, and Akershus.|
|Oslo and Bærum municipality||9 470||2 150|
|Akershus county except Bærum municipality||7 370||1 380|
|Bergen municipality||7 990||1 740|
|Trondheim municipality||7 880||1 920|
|Stavanger municipality||10 290||1 650|
|Urban settlements with more than 20,000 inhabitants1||6 980||1 320|
|Urban settlements with between 2,000-19,999 inhabitants2||5 920||1 050|
|Urban settlements with between 200 and 1,999 inhabitants and sparsely populated areas2||5 200||780|
Geographical location is a key factor in the rent differences. The average monthly rent for dwellings with two rooms in Oslo including Bærum is NOK 8 500 in the fourth quarter of 2012. Equivalent rents in Bergen, Trondheim and Stavanger are NOK 6 710, 6 830 and 6 880 respectively. The lowest rent estimates are found in urban settlements with between 200 and 1 999 inhabitants and sparsely populated areas.
Private individuals are the most dominant type of landlord
There are clear elements of “subsidised” tenancy agreements in the rental market. As private individuals acting as landlords are such a prominent factor, they may let out to family and friends at “subsidised” rents. The RMS shows that this share of the market constitutes more than 10 per cent in the bigger municipalities.
The “non-subsidised” rental market consists of private individuals acting as professional landlords and private professional landlords and letting agencies. Common for these letting categories are that the tenancy agreements are subject to regular market conditions.
Period of tenancy important factor
The RMS shows that most tenants have their tenancy regulated in a written contract. The contract can be based on a fixed-term agreement for a fixed period or a periodic agreement. The RMS shows that fixed-term agreements are drawn up more often in Oslo including Bærum compared to the rest of the country, while periodic agreements are more common for Norway as a whole.
The RMS 2012 shows that period of tenancy is an important factor for the rent level. Tenancies from 2012 and 2011 are on average more than 10 per cent higher than tenancies from 2006-2010. For tenancies prior to 2006 the rent level is on average 28 per cent lower than the newest tenancies.
The RMS from the fourth quarter of 2012 presents more detailed geographical divisions, which means changes in StatBank tables.
The RMS from the fourth quarter of 2012 is based on two methods of calculation: in addition to the descriptive statistics, detailed predicted rent levels are estimated for different geographical areas with the use of hedonic regression techniques. To see predicted monthly rents by price zones see StatBank.
The Norwegian rental market is characterised by large variations in rents due to geography, physical unit attributes, relations between tenants and landlords and period of tenancy. The average estimates must therefore be treated with some caution. It is also important to emphasise that average rent levels from previous years are not directly comparable since the survey is based on unique samples each year that may differ according to variables that are important for the rent level. The rent level figures from the fourth quarter of 2012 are rounded off to the nearest ten.
The Rental market survey (RMS) measures the rent levels and the composition of the Norwegian rental market for a given time period. Rent levels are broken down into certain segments of the market. The RMS is not intended to present rent changes over time. The RMS measures rent levels based on independent samples each year. Thus the letting objects may vary with respect to variables that determine rent levels.