Reykjavik: rents go up and the buildings collapse
Reykjavik: rents go up and the buildings collapse. The capital of Iceland has undergone a period of profound economic depression and, above all, in the real estate sector. Despite being a highly recommended nation to relocate, the high cost of living and excessive population density have contributed to this stalemate in the land of ice.
The problems affect more the rent price index in the capital, increased by 3% compared to the month of August.
At the same time the prices of the properties on sale decreased by 0.5% (according to the National Registry).
How come and what is due to this surge on one side and collapse on the other?
It is necessary to take a step back and analyze the type of investors facing the Icelandic real estate market.
In the 60s, it was families (very numerous) looking for a house to buy in Iceland.
Over time, however, potential buyers have changed, reducing the range to 25-30 years of age.
The latter, of course, are more likely to sign a lease and not the exclusive property of a building.
Reason for which, the increasing demand for rents, has caused a 'surge in prices, leading the real estate market (circumscribed to the purchase of housing) to a heavy price collapse.
Homes lose value and even the potential seller finds it difficult to find a fair answer on the demand side.
In short, it seems that the Icelandic property market is hibernated.
Statistical data can not guarantee certain predictions, but what is hoped is that this '' ice age '' may defrost as soon as possible!
The problems affect more the rent price index in the capital, increased by 3% compared to the month of August.
At the same time the prices of the properties on sale decreased by 0.5% (according to the National Registry).
How come and what is due to this surge on one side and collapse on the other?
It is necessary to take a step back and analyze the type of investors facing the Icelandic real estate market.
In the 60s, it was families (very numerous) looking for a house to buy in Iceland.
Over time, however, potential buyers have changed, reducing the range to 25-30 years of age.
The latter, of course, are more likely to sign a lease and not the exclusive property of a building.
Reason for which, the increasing demand for rents, has caused a 'surge in prices, leading the real estate market (circumscribed to the purchase of housing) to a heavy price collapse.
Homes lose value and even the potential seller finds it difficult to find a fair answer on the demand side.
In short, it seems that the Icelandic property market is hibernated.
Statistical data can not guarantee certain predictions, but what is hoped is that this '' ice age '' may defrost as soon as possible!
