The real estate market in Reykjavík is booming, according to analysis by economists at Landsbankinn bank. The bank finds that prices rose by 13.6% in the past 12 months, which is the highest 12 month rise since 2007.
Read more: House prices are expected to increase by 25 % by 2017
Prices of homes have risen more than condos or apartments in multi family homes in the past few months. House prices have risen by 10.6% in the past six months, compared to 8.6% for apartments. When looking over a longer period, however, it becomes clear that apartment prices have risen significantly more than single family homes. Since 2011 prices of apartments in multi family houses have risen by 50%, in real terms, while prices for single family homes have risen by 30%.
The reason for rising prices is a shortage of new housing, the Icelandic National Broadcasting Service reports. Demand outpaces new construction in Reykjavík, where only 2% of apartments sold were newly constructed. At the same time interest rates have gone down and access to loans increased.
The real estate market in Reykjavík is booming, according to analysis by economists at Landsbankinn bank. The bank finds that prices rose by 13.6% in the past 12 months, which is the highest 12 month rise since 2007.
Read more: House prices are expected to increase by 25 % by 2017
Prices of homes have risen more than condos or apartments in multi family homes in the past few months. House prices have risen by 10.6% in the past six months, compared to 8.6% for apartments. When looking over a longer period, however, it becomes clear that apartment prices have risen significantly more than single family homes. Since 2011 prices of apartments in multi family houses have risen by 50%, in real terms, while prices for single family homes have risen by 30%.
The reason for rising prices is a shortage of new housing, the Icelandic National Broadcasting Service reports. Demand outpaces new construction in Reykjavík, where only 2% of apartments sold were newly constructed. At the same time interest rates have gone down and access to loans increased.
