Valuation and yield development

Newsec conducts over 3,000 valuations, 300 project valuations, and appraises property for over NOK 650 billion each year. This gives us unique access to information when performing tailormade analyses at an aggregate level. The map below shows properties valued by Newsec Norway the past year.

Valuation development

The value index is taken from our database and shows an aggregate value development in nominal values, and are indexed based on the first quarter of 2008. The graph shows value trends from quarter to quarter and does not include current returns. Furthermore, it does not include major investments.

From Q2 2018 to Q2 2019, the Oslo CBD office segment and the Oslo office segment have generally shown the best value trends, with figures of 10.9% and 8.3%, respectively. The Oslo CBD office segment began to accelerate from the other segments when foreigners made their entry onto this market in 2015. Recently, yields have been at a standstill and it is now rental price growth that is raising values. It is gratifying to see that Stavanger has stabilised after the oil downturn, but figures remain below 2013 levels. The retail property graph reflects the value trends for all retail properties throughout Norway. Here, growth has been slowing lately and is now negative for the first time; we clearly see a challenging retail market in which e-commerce and cross border trade are major threats.

Yield development

Newsec's yield table is based on observed transactions in the transaction market and is set quarterly during Newsec Quality Board meetings. Changes since the last quarter are bolded.

We have extensive experience with all property segments and we appraise office, retail, hotel and logistics properties throughout Norway. Newsec offers consultancy services for all property matters and provides tailormade analyses and recommendations at both the strategic and property level in order to optimise property values and to maximise returns for owners. Newsec possesses expertise in the credit markets and can assist property owners with more efficient capital structures by analysing, structuring and negotiating on behalf of the customer. Newsec is certified by the Norwegian Appraisal Association and the Royal Institution of Chartered Surveyors.