The real estate market in Iceland continues to boom, with housing prices projected to rise by as much as 30% in next three years. A booming economy and a shortage of new construction will continue to push up prices economists at Arion bank argue in a new report.
Read more: Rise in real estate prices in Iceland one of the largest in the world, rose by 12.9% last year
The report finds that at least 8-10,000 new apartments must be added in Iceland before the end of 2019 to meet growing demand. This goal is unlikely to be met, as estimates from Business Iceland show that only 7,000 new apartments will be added in the next three years. As a result the housing market will continue to be characterized by growing demand pressures, resulting in rising prices.
Read more: Construction of new hotels in Reykjavík continues apace: 50% more hotel rooms by 2020
Most of the rise will take place this year, the report finds. Housing prices in Reykjavík will therefore likely rise by 14% in the first six months of 2017. This follows a 15% year-over-year rise in December 2016.
Real estate prices in Iceland fell dramatically following the 2008 financial crash. In 2010 the market bottomed out. Since then prices have risen by 42.2%.
The real estate market in Iceland continues to boom, with housing prices projected to rise by as much as 30% in next three years. A booming economy and a shortage of new construction will continue to push up prices economists at Arion bank argue in a new report.
Read more: Rise in real estate prices in Iceland one of the largest in the world, rose by 12.9% last year
The report finds that at least 8-10,000 new apartments must be added in Iceland before the end of 2019 to meet growing demand. This goal is unlikely to be met, as estimates from Business Iceland show that only 7,000 new apartments will be added in the next three years. As a result the housing market will continue to be characterized by growing demand pressures, resulting in rising prices.
Read more: Construction of new hotels in Reykjavík continues apace: 50% more hotel rooms by 2020
Most of the rise will take place this year, the report finds. Housing prices in Reykjavík will therefore likely rise by 14% in the first six months of 2017. This follows a 15% year-over-year rise in December 2016.
Real estate prices in Iceland fell dramatically following the 2008 financial crash. In 2010 the market bottomed out. Since then prices have risen by 42.2%.
