Norway

Overall construction activity

The construction activity in Norway has been growing almost every year since 2011. Only 2018 saw negative growth, but the good times returned in 2019. Preliminary estimates indicate almost a 5% growth in overall construction activity in 2019. Growth rates were positive in all main markets, ranging from 1% in renovation and maintenance (R&M) on existing civil engineering installations, to about 10% in investments in new civil engineering works and new non-residential buildings. Total domestic production was about €54.3 billion in 2019. Revenues for Norwegian companies from construction abroad were about €2.5 bn. Higher interest rates are one of several reasons for the downturn in housing production. The introduction of a new and a more efficient debt register is another one. Total employment in construction was about 225,000 persons in 2019, of which 21,000 were self-employed workers. Total employment in construction is estimated to have increased by 2% in 2019.

Housebuilding

In 2019, building permits amounted to 34,000 units and starts to 32,000 units. Housing starts increased slightly compared to 2018, with student rooms being the main driver. New residential construction, including dwellings, garages and holiday houses, amounted to €13 billion in 2019. The market for residential R&M is doing better than the market for new homes, though growth rates are rather modest at about 1.5% in 2019.The market value was about €7.5 billion in 2019.