Turnover in the Icelandic housing market grew 10% in the first eight months of 2014 compared to the first eight months of 2013 according to a new report from Statistic Iceland (SI).
SI reports that the total turnover of enterprises in activities that are subject to value added tax (VAT) amounted to ISK 610 billion (USD 4.9 billion) in the period of July-August 2014, which is an increase of 4,2% compared to the same period of 2013. The biggest increase over the last 12 months has been in construction, about 16,1% increase.
Growing demand is spurring new construction. Residential real estate prices rose by 2.6% in 2013, taking rates up to similar levels found in 2004 before the last real estate bubble. The rise is driven by demand in Reykjavík where prices have risen more than 35%. In 2009 residental prices in the capital area dropped 30% as a result of the crash.
Turnover in the Icelandic housing market grew 10% in the first eight months of 2014 compared to the first eight months of 2013 according to a new report from Statistic Iceland (SI).
SI reports that the total turnover of enterprises in activities that are subject to value added tax (VAT) amounted to ISK 610 billion (USD 4.9 billion) in the period of July-August 2014, which is an increase of 4,2% compared to the same period of 2013. The biggest increase over the last 12 months has been in construction, about 16,1% increase.
Growing demand is spurring new construction. Residential real estate prices rose by 2.6% in 2013, taking rates up to similar levels found in 2004 before the last real estate bubble. The rise is driven by demand in Reykjavík where prices have risen more than 35%. In 2009 residental prices in the capital area dropped 30% as a result of the crash.
