JM Expands Housing Footprint in Norway Amid Market Challenges
April 5, 2025, 5:09 am
In the heart of Norway, JM is laying down roots. The company has kicked off production on two significant housing projects: one in Asker and another in Nordre Follo. This move comes at a time when the housing market is feeling the squeeze from rising interest rates and construction costs. Yet, JM is forging ahead, determined to meet the growing demand for homes in key areas.
In Asker, located just 30 kilometers from Oslo, JM is developing 69 residential units as part of the Bergerløkka project. This is the final stage of a larger initiative that will ultimately see around 600 homes built in the area. Meanwhile, in Nordre Follo, the Langhus Gård project is set to produce 83 residential units, contributing to a total of approximately 350 homes, including both apartment buildings and terraced houses.
The timing of these projects is crucial. The housing market is under pressure. Interest rates are climbing, and construction costs are soaring. Yet, JM is undeterred. The company sees an opportunity to contribute to the housing supply in Norway's burgeoning regions. This commitment is not just about building homes; it’s about shaping communities.
Sales for these residential units have already begun. Completion is expected in the second or third quarter of 2027. This timeline reflects a strategic approach to development, allowing JM to navigate the complexities of the current market while ensuring quality and sustainability.
Hilde Vatne, the Business Unit Manager for JM Norway, expressed optimism about the projects. The company’s ability to start production despite market challenges is a testament to its resilience and strategic planning. JM is not just a developer; it’s a player in the broader narrative of Norway’s housing landscape.
But JM's ambitions don’t stop at new developments. The company is also active in the real estate market, as evidenced by its recent sale of five properties in Bergen. This transaction, valued at approximately SEK 62 million, involves older single-family homes on Inndalsveien. The sale is part of JM's ongoing evaluation of its building rights portfolio, highlighting a proactive approach to asset management.
The properties sold cover about 2,400 square meters. The deal is expected to yield a profit of around SEK 19 million, a significant boost for the company. Partial payment will be received upon the transfer of legal title, with the final payment scheduled for the fourth quarter of 2026. This structured payment plan reflects a careful strategy to manage cash flow while maximizing returns.
Bergen has been a focal point for JM for years. The company has established itself as a key player in the housing development sector in this vibrant city. The sale of these properties is not just a financial transaction; it’s part of a larger strategy to enhance JM's presence in the region. The company aims to continue its growth trajectory in Bergen, ensuring it remains a significant contributor to the local housing market.
JM’s operations extend beyond Norway. The company is a leading developer in the Nordic region, focusing on attractive locations in Sweden, Norway, and Finland. Its projects emphasize sustainability and community development, aligning with broader trends in the housing market. With annual sales of approximately SEK 13 billion and a workforce of around 2,000 employees, JM is a formidable entity in the real estate landscape.
The company’s commitment to sustainability is evident in its approach to development. JM aims to create homes that are not only livable but also environmentally friendly. This focus on long-term sustainability is crucial in today’s market, where consumers are increasingly aware of their environmental impact.
As JM navigates the complexities of the housing market, it remains steadfast in its mission. The company is not just building homes; it’s building futures. Each project is a step toward addressing the housing shortage in Norway, particularly in areas experiencing rapid growth.
The challenges are real. Rising interest rates and construction costs pose significant hurdles. Yet, JM’s proactive approach positions it well to weather these storms. By starting production on new housing projects and strategically managing its existing assets, the company is setting itself up for success.
In conclusion, JM is at a pivotal moment in its journey. With new projects underway in Asker and Nordre Follo, and strategic sales in Bergen, the company is poised to make a lasting impact on Norway’s housing market. As it continues to expand its footprint, JM is not just responding to market demands; it is shaping the future of housing in the Nordic region. The road ahead may be challenging, but with resilience and innovation, JM is ready to meet the moment.
In Asker, located just 30 kilometers from Oslo, JM is developing 69 residential units as part of the Bergerløkka project. This is the final stage of a larger initiative that will ultimately see around 600 homes built in the area. Meanwhile, in Nordre Follo, the Langhus Gård project is set to produce 83 residential units, contributing to a total of approximately 350 homes, including both apartment buildings and terraced houses.
The timing of these projects is crucial. The housing market is under pressure. Interest rates are climbing, and construction costs are soaring. Yet, JM is undeterred. The company sees an opportunity to contribute to the housing supply in Norway's burgeoning regions. This commitment is not just about building homes; it’s about shaping communities.
Sales for these residential units have already begun. Completion is expected in the second or third quarter of 2027. This timeline reflects a strategic approach to development, allowing JM to navigate the complexities of the current market while ensuring quality and sustainability.
Hilde Vatne, the Business Unit Manager for JM Norway, expressed optimism about the projects. The company’s ability to start production despite market challenges is a testament to its resilience and strategic planning. JM is not just a developer; it’s a player in the broader narrative of Norway’s housing landscape.
But JM's ambitions don’t stop at new developments. The company is also active in the real estate market, as evidenced by its recent sale of five properties in Bergen. This transaction, valued at approximately SEK 62 million, involves older single-family homes on Inndalsveien. The sale is part of JM's ongoing evaluation of its building rights portfolio, highlighting a proactive approach to asset management.
The properties sold cover about 2,400 square meters. The deal is expected to yield a profit of around SEK 19 million, a significant boost for the company. Partial payment will be received upon the transfer of legal title, with the final payment scheduled for the fourth quarter of 2026. This structured payment plan reflects a careful strategy to manage cash flow while maximizing returns.
Bergen has been a focal point for JM for years. The company has established itself as a key player in the housing development sector in this vibrant city. The sale of these properties is not just a financial transaction; it’s part of a larger strategy to enhance JM's presence in the region. The company aims to continue its growth trajectory in Bergen, ensuring it remains a significant contributor to the local housing market.
JM’s operations extend beyond Norway. The company is a leading developer in the Nordic region, focusing on attractive locations in Sweden, Norway, and Finland. Its projects emphasize sustainability and community development, aligning with broader trends in the housing market. With annual sales of approximately SEK 13 billion and a workforce of around 2,000 employees, JM is a formidable entity in the real estate landscape.
The company’s commitment to sustainability is evident in its approach to development. JM aims to create homes that are not only livable but also environmentally friendly. This focus on long-term sustainability is crucial in today’s market, where consumers are increasingly aware of their environmental impact.
As JM navigates the complexities of the housing market, it remains steadfast in its mission. The company is not just building homes; it’s building futures. Each project is a step toward addressing the housing shortage in Norway, particularly in areas experiencing rapid growth.
The challenges are real. Rising interest rates and construction costs pose significant hurdles. Yet, JM’s proactive approach positions it well to weather these storms. By starting production on new housing projects and strategically managing its existing assets, the company is setting itself up for success.
In conclusion, JM is at a pivotal moment in its journey. With new projects underway in Asker and Nordre Follo, and strategic sales in Bergen, the company is poised to make a lasting impact on Norway’s housing market. As it continues to expand its footprint, JM is not just responding to market demands; it is shaping the future of housing in the Nordic region. The road ahead may be challenging, but with resilience and innovation, JM is ready to meet the moment.