1. STATE OF THE HOUSING INDUSTRY Norway

2. 2 COUNTRY: Norway NAME OF ORGANIZATION: Norwegian Home Builders' Association (NHBA) 1- ORGANIZATION OVERVIEW: Norwegian Home Builders' Association is a trade association for builders of residential buildings and holiday homes. The association is the leading voice of housing policies in Norway and promotes policies making housing a national priority. Norwegian Home Builders' Association is a part of The Confederation of Norwegian Enterprise (NHO). We have 162 direct member companies, and 800 associated members companies through franchise concepts among our direct members. NORWAY

3. 3 2- HOUSING ECONOMIC STATISTICS: Starts:Percentages:Numbers: - Single, Muliti Family Year 201530 150 - Multifamily Gross Domestic Product (GDP) Year 2014$ 500 Billion GDP Growth 3,0% Q3 2015 GDP Per Capita Year 2014$ 67,245 House Price Index 4.6% in 2015 Consumer Price Index 2.3%Dec 2014 – Dec 2015 Unemployment 4.6% Nov 2015 Home Mortgage Interest Rate 2.2 % Sept 2015 3.4% Floating Fixed 10 years Home Ownership Rate 80% Population Growth/Net 1.11% July 2015 Y-Y5,205,434

4. Population - Norway 4

5. This is Norway 5  Read more facts about Norway  http://www.ssb.no/en/befolk ning/artikler-og- publikasjoner/_attachment/2 37252?_ts=1516c73e3a8 http://www.ssb.no/en/befolk ning/artikler-og- publikasjoner/_attachment/2 37252?_ts=1516c73e3a8  Statistics Norway  http://www.ssb.no/en http://www.ssb.no/en

6. 6  Norway’s Prime Minister, Finance Minister and Central Bank Governor held an extraordinary meeting in late January 2016 to discuss the current state of the beleaguered economy and how best to mitigate the impact of a collapse in Norway’s oil and gas sector. The trio concluded that current economic buffers, such as the devalued krone, low interest rates, and record levels of fiscal spending as stipulated in the 2016 budget will be sufficient to keep the country clear of a recession in 2016. This may be true, however the situation is still likely to deteriorate as unemployment increased approximately 25% on a yearly basis in October, investment in extraction related sectors fell 11.8% last year, and an estimated 30,000 jobs in the oil sector are expected to be lost permanently.  Although prospects are grim over the medium term, public finances will remain intact thanks to the large sovereign wealth fund, which the government can potentially draw from should emergency needs arise. Total GDP is expected to expand 1.6% in 2016, which is unchanged from last month’s forecast. In 2017, the panel sees the economy growing 1.7%. Mainland GDP growth, which excludes oil drilling activities, is expected to grow 1.4% in 2016 and 1.8% in 2017. 4.HOW HAVE ECONOMIC AND/OR POLITICAL CONDITIONS CHANGED SINCE THE BEGINNING OF 2015?

7. 4.HOW HAVE THESE AND RELATED INSTANCES OF INTERNATIONAL FINANCIAL MARKET TURBULENCE, INCLUDING THE SLUMP IN COMMODITY PRICES, PARTICULARLY OIL, IMPACTED YOUR HOUSING MARKET? 7  The housing market overall in Norway has not been affected too much of the international turbulence. However there are regional differences. On the west coast of Norway, where the market is oil/gas/shipping driven, the housing starts and sales went down 20 percent in 2015. That part of Norway will struggle in 2016.  The downturn in the oil-region is compensated in other parts of Norway, especially the urban pressure area around the the capitol, Oslo.  Our currency (NOK) has weakened ca 25-30 % compared to USD and Euro. That is good news for Norwegian export industry and tourist industry. The interest rate is historically low  Norwegian housing market has had a record high housing sales in 2015. That is looks promising for housing starts in 2016.

8. 8 5- IF THE ECONOMIC AND POLITICAL DYNAMICS DESCRIBED ABOVE HAVE IMPACTED YOUR MARKET, DO YOU EXPECT THESE CONDITIONS TO NORMALIZE BY YEAR END? Yes__________No___X_____ 6- IF YOUR MARKET HAS BEEN IMMUNE TO THESE DYNAMICS TO DATE, DO YOU EXPECT TO SEE AN IMPACT ON YOUR HOUSING MARKET BEFORE THE YEAR IS OVER? Yes___________No________ Don’t know_____X___ STATE OF THE HOUSING INDUSTRY PRESENTATION TEMPLATE…. CONT.

9. Infrastructure Environment Labour Public cost Land Key personnel Funding Productivity Cost Efficiency Planning Roads Railways Schools Police Fire dept Health workers Teachers Enough land Local municipalities Central plan Banks Risk capital Guarantees Bureaucracy / Legislation Time / cost Neighbours Work / home House prices / salary Energy 9 Our lobby strategy

10. THANK YOU. IHA Secretariat