Mountain cottages located by cross country trails are popular.
The annual mountain huts report from Property Norway, which was presented yesterday, shows that cottages on cross-country trails are in the wind. The value of mountain cottages located by cross-country ski runs increased by 1.9 per cent in the last year, while mountain cottages located at resorts dropped by 2.8 per cent.
– Precious carcasses near resorts have seen their best days. They still need to be priced downwards, says chief economist Jan Ludvig Andreassen in the Eika Group to Hytteliv.
– Cross country skiing is in the moment, often combined with nice hiking areas. While it was previously the courage to have big parties in the cottage, leisure activities are now in focus, he continues.
The reasonably priced family cottages that are not too far from the big cities make it the best. Luxury cottages worst. At the same time, the cabinet regulators consider a growing interest in general by cottages: From February 2014 to February 2015, 3,188 mountain cottages were sold in Norway – an increase of 26 per cent from the same period the year before.
The Norwegian economy is changing, with declines for the previously rich oil industry, and a certain upswing for more traditional industries that enjoy more interest rate cuts and weak krone rates than they are hurting by oil prices. The cottage and open-air market is one of the winners in this new low-growth period. Families choose a holiday in Norway, and we are also getting more foreigners visiting, explains Andreassen.
CEO Christian Vammervold Dreyer in Property Norway believes the attractiveness has not changed, but that cottages near resorts often have higher prices than “cross-country cottages”. And the most expensive cottage market is still somewhat slower than the regular cottage market. It is reflected in these different price trends, he believes.
Bård Kristiansen, Chief Executive Officer in the Sports Industry, who is based on sales figures from the various sports chains, confirms that the cross-country interest rate is high and has been quite stable over the last 4-5 years.
– The area that may grow most is equipment for top trips, says Kristiansen til Hytteliv.
– Regular cross-country equipment necessarily increases no more than alpine equipment if you want to try a comparison. But we have seen that the roller shed sales grow sharply. It is possible that those who enjoy cross-country skiing, go more often than before. Perhaps an interest in cross-country skiing in recent years has made it more attractive also to own a cottage outside the alpine areas, he wondered.
Communication manager Emilie Nordskar in Skiforeningen can tell that they notice increased cross-country interest. Skiforeningen currently has 72 000 members, an increase of 50 per cent over the past five years.
– The increased interest can deal with several things, both that cross country skiing is an incredibly nice form of training and that most people seem to be increasingly busy being in activity, but also skiing and then cross-country skiing becomes more and more visible in the media through familiar profiles, says Nordskar.
Increasing turnover of cottages means the brokerage industry is due to Norwegians’ belief in their own finances.
– Most people experience a safe working situation, positive payroll development, record low interest rates and creditworthy banks. This combination has meant that many in the cottage market have now jumped down from the fence and have traded. We have simply gotten higher demand, the offer has been quite stable for a long time, “says Dreyer.
The price of a hut
The mountain huts report, however, shows that overall prices for cottages in the mountains have had a slight development and rose by only 0.3 per cent in the last year. The typical mountain hut in Norway now costs NOK 1.5 million.