ABOUT SELVAAG BOLIGA LEADING HOUSING AND URBAN DEVELOPER
Selvaag Bolig ASA is a residential property developer which controls the entire value chain from acquisition of land to completed residential and urban areas. Selvaag Bolig represents a continuation of Selvaag’s more than 75-year history and experience, and has several thousand homes under development in growth areas in and near the largest cities in Norway and in Greater Stockholm. The company has a broad variety of residential types, and also offers the lifestyle concept Selvaag Pluss® which has homes with shared facilities and services.
Our vision: We make cities better.
Selvaag Bolig is a safe and secure partner for life’s most important investment. Choosing us is choosing expertise, seriousness and high ambitions.
We like to call ourselves housing specialists – building over 60 000 homes does something to you.
Since the very beginning, Selvaag and all of us who work in Selvaag Bolig have promoted smart solutions. We have challenged the authorities and the industry itself about what is possible to build, and we continue to do so. Every day we are working to develop homes, neighbourhoods and solutions that simplify people's lives. We make sure that long-lasting and sensible projects for everyone are built in areas where they are needed, in growing cities. That is sustainability in action.
No project is too big or too complex for us. At Løren in Oslo, we transformed a shuttered military camp to become an entire new neighbourhood. At Kaldnes in Tønsberg, a dead industrial zone got a new life as a new and vibrant residential area. At Fornebu, a new city will emerge where an airport once stood. When we create the cities of the future, it is our task to ensure that people’s homes and neighbourhoods create a secure setting for a good life.
Our long history as the homebuilder for the people gives us a responsibility. We build housing that is highly needed, at a price most people can afford.
Everything we do is carefully contemplated, down to the smallest details.
LETTER FROM THE CEOWE ARE OPTIMISTIC AND WELL-PREPARED FOR THE FUTURE
2025 has been a good year for Selvaag Bolig. We have strengthened our market position and delivered positive results despite a somewhat cautious new housing market. We have gained market share in our core regions, started construction of 476 homes and maintained good profitability through tight cost control. We are optimistic about the future, while being well-prepared if the new housing market continues to be characterised by uncertainty.
The year started with strong demand and record-high sales, but the level of activity fell when the expected interest rate cut failed to materialise in March. When the Norwegian Central Bank reduced the policy interest rate in June and September, optimism in the market increased, even though there was uncertainty at times during the year. Despite this, Selvaag Bolig achieved good sales figures and increased market shares in our most important markets. The company was the best-selling housing developer in Bergen and number two in Eastern Norway in 2025, according to the analysis company Plot.ai.
Our sales development is driven by attractive projects in central locations and strong, differentiated concepts. With more than 75 years of experience in housing construction and professional management, we are perceived as a safe choice in today's market. The Pluss lifestyle concept is an important competitive advantage and accounted for over a third of sales in 2025. Pluss® Homes offer more than traditional homes – through staffed service areas, social activities and practical services. The concept meets both homebuyers' needs for a simpler and more social life, and municipalities' requirements for inclusive housing projects that reduce loneliness for people in different life situations.
Throughout 2025, we have shown that we can deliver positive results even with fewer deliveries than normal. A flexible organisation combined with strict cost control has contributed to robust results for our shareholders. In the past year, we have started construction of 476 homes, thereby increasing the value of homes in production compared to the end of 2024. Based on earnings of NOK 1.42 per share, the board of directors has proposed a dividend of NOK 1.00 per share for 2025.
Selvaag Bolig has strengthened its land bank throughout the year with agreements that will provide approximately 900 new homes in central areas of Eastern Norway. We believe that there are opportunities to make good land purchases now, and are therefore working on further investments.
Throughout 2025, we have also actively engaged in the public debate about housing construction and operating and regulatory conditions. We have highlighted that Norwegian technical requirements are highly cost-driving and make it demanding to realise new housing projects outside the largest cities. Furthermore, we have addressed tax consequences for rental homes, the apartment size regulations, and lengthy planning approval processes. These are conditions that collectively contribute to inhibiting housing construction and weakening predictability in the market.
Sustainability is integrated into our business strategy and has been an important topic throughout the past year. We prioritise transformation areas and plots near public transport hubs, and avoid purchasing new plots that take up arable land. Our emissions come mainly from construction sites, and we work systematically with measures that combine sustainability and cost focus, such as reuse where this is technically and economically feasible. Another tool is the development of compact housing that both reduces the footprint per household and provides competitive costs. Simplified reporting requirements as a result of Omnibus allow us to focus sustainability reporting on the most significant aspects.
Social sustainability is one of our priorities. We value the customer highly, and in 2025 our customer satisfaction was at a record high level of 84 out of 100, which is 7 points above the industry average. Our Pluss® homes create living environments that provide increased security, reduce loneliness and facilitate sharing and community. In addition, each household needs fewer square meters in its own home when there are guest rooms, lounges, meeting rooms, gyms and party rooms in the common area.
Our employees are essential to the company’s performance. We have once again achieved very high employee satisfaction and are ranked among Norway’s best workplaces according to Great Place to Work. The combination of strong professional expertise, effective collaboration and a high degree of co-ownership, where 62 per cent of employees are shareholders, clearly translates into high-quality projects and strong results.
Looking ahead, we see signs of improvement in the new housing market, driven by real wage growth, a significant underlying housing need in central areas, and expectations of further interest rate cuts over time. We will launch several attractive projects for sale in 2026, and already in the first quarter we achieved record-strong sales following launches in Oslo, Ski, Bergen and Stockholm. The Selvaag Pluss, Selvaag City and the Neighbourhood concepts will continue to meet housing needs in a sustainable and sought-after way. At the same time, we are prepared if geopolitical conditions or other factors negatively impact demand in the future. In recent years, we have demonstrated strong cost control, and an ability to sell and start construction even in a sluggish market.
Our ambition is to make it attractive to work at Selvaag Bolig, invest in the company and choose us as a housing supplier. With a solid project portfolio, good cost control and a strong position in the market, we are well equipped for the future.
EXECUTIVE MANAGEMENT AT SELVAAG BOLIG ASA
Sverre Molvik | ||
Øystein Klungland | Line Lian Mjell | Christopher Brunvoll |
DESCRIPTION OF THE BUSINESS
Selvaag Bolig is a housing development company that offers homes tailored for various customer groups in the growth areas in and around the largest cities in Norway and in Greater Stockholm. By offering good housing at competitive prices, the company will give as many people as possible, in all phases of their lives, the opportunity to own a home. The company does not have an in-house construction arm, and concentrates primarily on developing large housing projects with more than 150 homes, mostly in the NOK 5.5-7.5 million price category. By subjecting construction to competitive tendering, the company reduces risk and achieves better prices. In addition, Selvaag Bolig has employed service people in the wholly owned subsidiary Selvaag Pluss Service AS. The service people work as hosts and with operations and maintenance at the company’s Pluss Homes, homes with shared facilities and services which Selvaag Bolig operates after delivery to the customer.
There have not been changes in the company’s areas of business or value chain in 2025.
VALUE DRIVERS IN SELVAAG BOLIG
Competitive products in growth areas
- Focused exclusively on urban growth areas with strong housing demand and market depth.
- Competitive pricing targeting a large customer base.
- A wide range of housing types reaching multiple market segments and supporting revenue maximisation in projects.
Large, actively managed land bank
- Land bank mainly owned by partners results reduces capital employed.
- Value creation through development, enhancement and optimisation of land.
- Flexibility to develop several thousand homes in urban growth areas.
- Active capital management.
Efficient and flexible cost structure
- Use of external contractors provides flexibility, reduces risk and optimises costs.
- A project-based business model increases flexibility and reduces risk.
- Large-scale projects with more than 150 units provide economies of scale.
- An efficient, lean organisation results in lower overhead costs.
Capital-efficient business model supported by a strong balance sheet
- As a general rule, 60 per cent pre-sales before construction starts, reducing the need for project financing and lower inventory risk.
- A sound debt structure and financial flexibility.
Company structure
At Selvaag Bolig, all projects are placed in separate project companies. Most of the project companies are wholly owned by Selvaag Bolig ASA, and do not have their own employees. The project companies are subsidiaries that are consolidated 100% in the group accounts. In addition, Selvaag Bolig ASA has joint venture projects that are mainly owned 50/50 with other actors, and are classified as joint ventures/associated companies. The earnings from them are included in the consolidated accounts according to the equity method. For more information, see 2.6 Investments in associates in the group accounts. Selvaag Bolig has also separated operations of Pluss Homes into a separate company. Selvaag Bolig had 82 employees at the end of 2025, of which 56 were employed in Selvaag Bolig ASA. The remainder were employed in Selvaag Pluss Service AS, Selvaag Eiendomsoppgjør AS and in Selvaag Bostad AB including its subsidiaries.
Homes and housing concepts tailored to the market
Selvaag Bolig mainly constructs flats and large projects in urban areas in Norway and Sweden. The average home size is around 65 square metres of living space, and the types of homes and concepts are tailored to target groups with varying needs and preferences. The largest share of homes is designed for the biggest customer group, households with normal incomes. The share of Pluss® Homes, i.e., homes with shared facilities and services, has increased in recent years. Thanks to the size of its projects, the different types of homes can be combined in each project. This contributes to creating socially sustainable neighbourhoods by offering homes for people in all life situations and age groups. The combination of housing types also leads to a product offering that reaches a larger share of the market and optimises the sales and income profile of each project.
Competitive tendering for all contracts
Selvaag Bolig is solely a developer without its own construction organisation, and manages the whole value chain from the purchase of land to the sale of turnkey homes. The company has an efficient approach to housing development which helps to ensure cost efficiency and reduce market risk. The key to this is the competitive tendering of all construction activities, and that the company mainly enters into turnkey contracts. This offers several advantages:
- Focused organisation: About 60 employees in the core business. A small organisation focusing on development and sales.
- Predictable and competitive construction costs: Tenders from several contractors, based on standard descriptions, always ensuring the right market price and construction at fixed prices. Collaboration exclusively with contractors who have leading-edge expertise in implementing assignments.
- Lower execution risk: Using turnkey contracts reduces execution risk in the construction phase.
- Lower market risk: Construction costs are locked before sales start and the need for big staffing adjustments in the event of market fluctuations is low.
- Improved capacity: Scalable model and no capacity problems when several projects are being built simultaneously.
Land purchasing and financing
In addition to subjecting construction to competitive tendering, Selvaag Bolig’s strategy for buying and developing new sites is central to value creation at the company. The company has access to a substantial portfolio of land. That makes it possible to select new sites so that they fit with the existing portfolio and meet the company’s requirements for sustainability, location, size, price and development potential. The company purchases land in line with an acquisition strategy which gives priority to large land plots in its defined core areas.
Land purchasing and financing in Norway
A large part of Selvaag Bolig’s available land portfolio is owned by the company’s financing partner Urban Property, who sells land back to Selvaag Bolig when construction starts on the projects. This model makes it possible for Selvaag Bolig to refine its core activities, increase its operational focus and manifest value in Selvaag Bolig’s day-to-day activity. Urban Property is a financially sound, well-capitalised and predictable partner for Selvaag Bolig. The cooperation is long-term and strategic.
The collaboration agreement with Urban Property, summarised:
- Urban Property has a pre-emptive right to purchase new land in Norway that Selvaag Bolig wants to develop. If Urban Property does not exercise this right, Selvaag Bolig can use other financing solutions and/or collaborate with others.
- Selvaag Bolig has an option to buy back the land from Urban Property.
- The land is bought back by Selvaag Bolig at the original purchase price plus an annual option premium of Nibor plus 3.75 per cent. A transaction fee of 0.5 per cent is also payable when Urban Property buys land from the landowner, and 2.0 per cent when Selvaag Bolig buys the land from Urban Property.
- Selvaag Bolig’s downside risk if it does not exercise the option is limited to 48 months of option premiums (break fee).
- The agreement contains financial covenants. See note 29 for further information about the covenants.
Advantages for Selvaag Bolig:
- Limited need for equity to buy land. Selvaag Bolig pays 50 per cent of the purchase price to Urban Property when taking over a site (when construction starts) and 50 per cent on project completion.
- Higher return on equity because of less use of equity.
- Ability to pay out a higher share of profit as dividend over time.
- Efficient and predictable financing of existing and new sites.
Selvaag Bolig has several collaboration projects with others than Urban Property, with a 50 per cent ownership stake. The land is either jointly owned in a project company or owned by the joint venture until the construction starts on the project. Fornebu Sentrum, FMV Vest in Fredrikstad and Høyden in Moss are examples of such joint venture projects. In addition, Selvaag Bolig also has some land on its own balance sheet with a book value of roughly NOK 500 million at the end of 2025.
Land purchasing and financing in Sweden
In Sweden, Selvaag Bolig primarily makes agreements on land purchases through land allocation by local authorities. The allocation is normally in conjunction with a bidding competition with many actors where price is one of several criteria. Payment for the land typically occurs when the land is ready for construction to begin, and the planning permission risk is thus eliminated. In addition, an agreement has been made that Urban Property can finance land plots that are acquired in Sweden.
The collaboration agreement with Urban Property in Sweden, summarised:
- In municipal property acquisitions, Urban Property may assume the purchase agreement with the municipality.
- If Selvaag Bolig purchases land from others than municipalities in Sweden, Urban Property has a right of first refusal to purchase that land. If Urban Property does not exercise its right of first refusal, Selvaag Bolig may use other financing solutions and/or collaborate with others.
- Selvaag Bolig has an obligation to buy back the land from Urban Property.
- The land is bought back by Selvaag Bolig at the original purchase price plus an annual return of STIBOR plus lending margin plus 1.25 per cent. A transaction fee of 1.0 per cent is also payable when Urban Property buys land from the landowner, and 1.5 per cent when Selvaag Bolig buys the land from Urban Property.
- The agreement ensures a currency-neutral return to Urban Property, by Selvaag Bolig taking the risk of the exchange rate between NOK and SEK on the equity contributed during the project period.
- The agreement contains financial covenants. See note 29 for further information about the covenants.
Sales strategy
The company's sales strategy is the key to ensuring optimal progress and profitability in the projects. Segmentation of housing projects and optimisation of complex projects with a broad range of housing types, including extensive use of its trademark-protected lifestyle concept Pluss, have yielded positive sales and a favourable progression of sales.
As a general rule, Selvaag Bolig does not start construction until 60 per cent of the value of a building stage has been sold. In a tough market in recent years, some construction phases were started with a somewhat lower sales ratio, but the general rule still applies in a normal market. The goal is that the rest of the building stage is sold during the period up to completion. This makes it possible to price the units in the project in line with market price developments and ensures revenue optimisation. Furthermore, the attention devoted to detailed planning, standardisation, site utilisation and strategic land development helps to secure sustainability, low construction costs and good project margins for the company and competitive house prices.
Sustainability (ESG) and quality
Selvaag Bolig shall ensure that the company delivers sustainable housing and urban development areas, which stand the test of time and contribute to creating better neighbourhoods and better cities. Sustainability is an integral part of concept development, project implementation and follow-up of suppliers. The company sets strict requirements for quality and compliance throughout the value chain, which reduces risk and ensures high-standard housing.
Environment (E)
The company works systematically to reduce greenhouse gas emissions, especially from construction projects (Scope 3), which constitute the main part of the company's footprint. Environmental considerations are taken into account through planning, material selection and cooperation with suppliers. Selvaag Bolig also works to manage climate risk, reduce waste, increase recycling and safeguard biodiversity.
Social sustainability (S)
Selvaag Bolig emphasises a safe and inclusive working environment and has high employee and customer satisfaction. The company develops projects that will contribute positively to neighbourhoods and local communities, including through participatory processes and the company's housing concepts. All suppliers are evaluated and followed up to ensure that human rights and good working conditions are safeguarded. Safety on the construction site is central, with the goal of zero lost-time injuries.
Governance (G)
Good corporate governance is fundamental to Selvaag Bolig. The company has clear routines for risk management, compliance with laws and regulations, and ethical guidelines. Strict requirements are set for anti-corruption and competitive behaviour, and both employees and suppliers are followed up through training and routines. Privacy and IT security are safeguarded through established procedures and regular training.
Read more about sustainability in the sustainability chapter in this annual report and Appendix: Details about ESG.
Goals
Selvaag Bolig aims to be one of Norway’s leading housebuilders, contribute to inclusive local communities and facilitate a sustainable lifestyle. The company has a long-term objective of growth which will not be pursued at the expense of profitability. The company’s strategy helps to secure its position as market leader and to strengthen its competitiveness. Selvaag Bolig has a stated goal of achieving project margins of at least 10 per cent.
Dividend policy
Selvaag Bolig’s ambition is to pay high and stable dividends to its owners. The goal is that the dividend should be a minimum of 60 per cent of net profit and paid twice a year. However, the size of the dividend must be balanced against the company’s liquidity forecasts and capital adequacy.
Work in progress risk
Selvaag Bolig works actively to reduce the risk of cost overruns and delays. This is minimised by the company mainly entering turnkey contracts with solid construction companies which have a high level of expertise as well as a documented ability to deliver. The turnkey contractor is responsible for delivering the project on time and within budget. In addition, the majority of the project cost is assured because construction as a general rule does not start before advance sales, measured in value, reach 60 per cent. Furthermore, a high degree of standardisation, combined with detailed specifications for contractors, reduces the risk of delays in the construction process. Continuous learning at the contractors contributes further to efficient project execution and reduced risk of errors and delays.
External risk factors
The demand for new homes is affected by macroeconomic factors such as interest rate developments, inflation, energy prices and general economic uncertainty. In recent years, this, together with high construction costs and lengthy regulatory processes, has contributed to a more cautious new home market. In 2025, sales were satisfactory, and Selvaag Bolig gained market share in its core areas. At the same time, future developments will continue to depend on the level of interest rates and costs, as well as regulatory conditions. External risk factors are included in the company's ongoing risk assessment, and are discussed in more detail in the chapter on corporate governance.
Value creation processes in Selvaag Bolig
Selvaag Bolig creates value during all the phases of housing development; from choosing sites to project development, construction and delivery.
Cooperative partners
Selvaag is a member of the Confederation of Norwegian Enterprise (NHO) and associated with the Federation of Norwegian Construction Industries (BNL) and the industry association Home Builders (Boligprodusentene). The company is also member of the Norwegian Green Building Council, and a member, contributor and an active force in several local and industry-specific institutions and forums. Selvaag Bolig also supports culture and mass-participation sports, especially in local communities where the company has projects.