Full corona pull in the cabin market – and it will continue well into 2021

Low interest rates, closed borders and encouragement to “stay at home” have created wild conditions in the mountain lodge market. November remained in full swing, according to the brokers DN has been in contact with.

– It was completely raw with us in November. The mountain broker in Hallingdal, which includes Hemsedal, Gol and Geilo, has sold 107 homes this month, up from 51 last year. Total sales increased by 85 percent. These are record numbers, certainly, we have never seen the same, says broker Christian Haatuft in Geilo.

He makes no secret that the cottage market is one of the real corona winners, because if people have to stay in Norway, they are also more interested in upgrading both house and cottage. Or buy the cabin they’ve wanted for years.

– When we launched the project Uthussentra, cabins in a row with a price between 4.9 and 5.9 million crowns, we sold half of it in a few days. The challenge now is that there are too few cabs for sale, ideally there should have been many more on the market to meet the high demand, says Haatuft.

Strong growth

Recent figures from the Forecast Center show that this year sales have so far reached 13,510 vacation homes, an increase of 25 percent from the same period last year. The average price has increased by nine percent to NOK 2.3 million and the price per square meter is NOK 30,800, which is seven percent higher.

– Yes, now we are at an all-time high. Since April / May there has been full power fighting all along and we think it will continue in the first half of 2021. Nothing indicates otherwise, says partner Bjørn-Erik Øye in the Forecast Center.

– The question now is how long this process will take. The cabin market got a kickstart with the corona, and we’ve stayed in Norway ever since. We are then asked what will happen when the corona crisis is over, and we can travel abroad again. But now, at least, cabin travel is under full pressure and everything is going away – in all price ranges, says Øye, who has been analyzing the Norwegian cabin market for several years.

The reason why the supply is now too small in many places in relation to an explosive demand is that the start-up has lagged somewhat behind. But this will attract, says Øye.

– Now the projects are on schedule. There’s a lot going on, and when a lot of new projects hit the market, it can help drive demand further, he adds.

Dæhlie hut for sale again

Real estate agent Petter Birkrem in Privatmegleren, who sells many log cabins in Trysil, agrees that November was a “very good month”, although October was even better.

– We sold 32 holiday homes in October and 26 in November, more than last year. If there had been more objects for sale, we would have set new records. But at the moment there is too little to sell in relation to stakeholder pressure, he says.

Bjørn Dæhlie's cabin in Trysil is for sale for DKK 13.9 million.

Bjørn Dæhlie’s cabin in Trysil is for sale for DKK 13.9 million. (Photo: Photo: Inviso AS / Bernat Tubau)

Many have a smaller cabin and are looking for something bigger, others are coming to the market for the first time. And while it is irrelevant for Swedes to vacation in Norway in the first place, they are real On per day, Birkrem reports.

– I’ve had a number of FaceTime shows with Sweden in the last few weeks. They want a cabin in Trysil that they can use when the borders open again, the broker says.

Now he has just put away Bjørn Dæhlie’s hut palace in Trysil with an estimated price of NOK 13.9 million. A 281 square meter cabin right on the alpine slope with a Jacuzzi, ten bedrooms and six bathrooms, which was also tried to sell in 2018 for 12.9 million kronor.

This was, in fact, the ski legend and the investor’s first real estate investment.

– A number of cabin upgrades were made in 2019, says Petter Birkrem, who believes the Dæhlie cabin offers good opportunities in the current hot cabin market.

Looking for luxury cabins

According to real estate agent Stig Svartor in Privatmegleren in Lillehammer, there is also a fire hood on Hafjell and Kvitfjell. He reports that about 40 vacation homes were sold last month, an 88 percent increase from November last year.

– It’s crazy. I have not looked at anything like this! The market is still selective, but there are so many questions and requests and so many sales – and now the shelves are starting to run out. We would like to have a lot more to sell, says Svartor.

A cabin they rented for Kron 7 million Monday morning was sold an hour later for Kroner 8 million. In the area there are several cabins for sale in the price range of 30 million “off market”, and Stig Svartor is looking for cabins on behalf of people who, for example, want “something around 20 million”.

– The market is just really good during the day, he says.(Conditions)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link that leads directly to our pages. Copying or otherwise using (part of) the content can only take place with written permission or to the extent permitted by law. See here for further conditions.

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