Property Investment Outlook: Economist Lene Drange Sees Potential Despite Challenges
Oslo, Norway – Despite recent tightening in the housing market, strategic property investments can still yield profits, notably in areas with strong growth potential, according to private economist Lene Drange, known from the TV2 program “the Luxury trap.” Drange highlighted a potential “rental crisis” stemming from a sell-off of rental apartments, especially in Oslo, and anticipates future positive developments in housing values within major cities.
The current landscape presents complexities for investors, but Drange emphasizes that securing financing and focusing on locations with robust growth are key to success. Recent tightening measures have led to a decrease in rental apartments available,particularly in Oslo,raising concerns about a potential crisis. This situation, coupled with anticipated future increases in housing value in major cities, suggests a dynamic market requiring careful research and strategic decision-making.
Drange noted that profitability remains achievable for those with secure financing and a focus on growth areas. “But if you have the financing in place,and that it is in a city or in a place where there is good growth,then it can still be very profitable,” she stated.
She pointed to a recent trend of rental apartment sell-offs in Oslo driven by tightening regulations. “It is exciting to see what happens with tax on rental housing. You almost have a rental crisis, so thay have to take some action there,” Drange explained.
Despite current challenges,Drange remains optimistic about the long-term outlook for housing values,particularly in larger cities. “It can go either way, but you have to do good research, then it should go well,” she concluded.
