Real-estate prices in Reykjavík rose by 11.4% in real terms in 2016. House prices in the capital have risen by 50% since 2010. Real prices have now for the first time reached the level achieved prior to the 2008 financial crash.
Read more: Iceland led the global real estate price increases in 2016
The average price of housing in real terms in Reykjavík in April was 1% higher than at the previous peak in October 2007. Economists at Landsbankinn bank argue in a recent report (pdf) that this is another sign that the Icelandic economy has made a full recovery after the 2008 financial crash. The purchasing power of wages had already reached the pre-crash peak in November 2014.
According to analysis by the Central Bank the real-estate market in Reykjavík will likely cool down by next year when price increases will start to slow down.
Real-estate prices in Reykjavík rose by 11.4% in real terms in 2016. House prices in the capital have risen by 50% since 2010. Real prices have now for the first time reached the level achieved prior to the 2008 financial crash.
Read more: Iceland led the global real estate price increases in 2016
The average price of housing in real terms in Reykjavík in April was 1% higher than at the previous peak in October 2007. Economists at Landsbankinn bank argue in a recent report (pdf) that this is another sign that the Icelandic economy has made a full recovery after the 2008 financial crash. The purchasing power of wages had already reached the pre-crash peak in November 2014.
According to analysis by the Central Bank the real-estate market in Reykjavík will likely cool down by next year when price increases will start to slow down.
