Navigating the Norwegian Real Estate Landscape in 2025

The Dynamic Nature of Planning and Building Law

Parliamentary Elections and Legislative Proposals

With the upcoming parliamentary elections, political parties in Norway are setting their agendas, which may lead to significant legislative changes affecting real estate stakeholders:

Høyre (Conservative Party): Proposes changes to facilitate energy sharing and storage, along with simplifications in the Planning and Building Act.
Arbeiderpartiet (Labour Party): Suggests amendments to ensure affordable housing and proposes a supervisory body for the private rental market.
Fremskrittspartiet (Progress Party): Advocates for removing the objection institute and reducing national planning regulations to enhance local autonomy.
Sosialistisk Venstreparti (Socialist Left Party): Aims to establish a non-commercial rental sector with price controls and proposes progressive property taxation.

Zoning Plans: Housing Cooperatives and Rental Housing

Significant changes in planning and building law are anticipated in 2025, including:

Amendments allowing municipalities to mandate housing cooperatives and rental units in development areas.
Proposals for “student housing” as a distinct zoning category.

These changes have sparked debate due to potential impacts on project profitability.

Supreme Court Rulings

Bergen Wharf Case: Affirmed no legal basis for demolishing a landowner’s wharf.

Recent Supreme Court decision highlight the importance of accurate reimbursement setups for development costs: Established that initial reimbursement setups are binding, underscoring the need for meticulous financial planning.

Anticipated Changes in Oslo Municipality

Oslo is poised for transformative changes in 2025:

A new municipal plan with potential for 120,000 housing units.
Revised small house plan where it is expected that the ministry will take a position on NVE’s objection
Proposed revisions to the Markaloven (Forest Act) to align legal text with administrative practices.

New Tenancy Act Under Review

A new Tenancy Act is under consultation, proposing:

Extending fixed-term leases from three to five years.
Allowing tenants to extend leases, potentially impacting rental property availability.

Housing Cooperative Model: Stability Amidst Uncertainty

Despite recent uncertainties, the housing cooperative model remains unchanged, offering tax advantages for developers. Monitoring political developments is advised.

Sequential Requirements and Development Agreements

Municipalities are tightening requirements for development projects. Legal processes are underway to clarify regulations, with significant implications for the real estate industry.

VAT Agreements: Reducing Infrastructure Costs

Developers should negotiate VAT agreements with municipalities to prevent VAT from becoming a final project cost, crucial for maintaining profitability.

Successful Transactions in Development Property

Buying and selling development property involves complex legal considerations, including zoning, sustainability, and tax issues. Our expertise spans the entire process, ensuring successful transactions.