Photo: Oscar Daniel Rangel
While most sectors show signs of stabilization, Norway’s property market is crumbling under pressure from high interest rates and weak demand, with bankruptcies up 32 percent this year.
While total bankruptcies in Norway fell 5 percent year-to-date, the real estate sector tells a starkly different story. Property-related bankruptcies jumped 32 percent overall, with September alone posting a dramatic 158 percent spike compared to the same month last year, according to Dun & Bradstreet data.
The third quarter registered 899 bankruptcies, down 4 percent, with five of ten sectors showing declines. Construction, retail, and manufacturing led the downturn with drops of 16, 15, and 14 percent respectively.
“The necessary shakeout in construction and retail has occurred. The survivors are strong enough to weather current conditions,” said Kari Mette Almskog, CEO of Dun & Bradstreet Norway.
Real Estate Under Pressure
Q3 saw 60 real estate bankruptcies, up 33 percent year-over-year. The September figures proved particularly alarming, with bankruptcies soaring 158 percent.
“Real estate now drives the bankruptcy statistics. The sector faces a challenging combination of high interest rates and weak demand. When the housing market stalls, it ripples through the entire property sector,” Almskog explained.
Forecasts predict real estate bankruptcy rates will climb another 15 percent over the next 12 months. Despite recent rate cuts, borrowing costs remain elevated enough to dampen purchasing power and investment appetite.
Regionally, Østfold posted the highest year-to-date increase at 15 percent, while northern regions, Nordland, Finnmark, and Troms, saw the steepest declines.
Myrna Whitaker 
Nils Lund 
Anna Broberg 
