Iceland: where the real estate market is in turmoil while the rest falls
It seems paradoxical, but in reality, in the coldest place in the world, precisely, Iceland, the real estate market is the hottest of the entire planet! House prices have risen considerably in recent years, leading the economists themselves to fear the real estate bubble problem.
The main rival that has been well placed in all economic sectors and not, is the Asian Hong Kong that, together with New Zealand and Canada, have precipitated drastically. But why have property prices in Iceland increased so much and above all in such a short time?
According to the head of Icelandic national residential research, the problem stems from the lack of new supplies on the one hand and the increase in demand for real estate on the other.
In fact, many investors, especially foreigners, have decided to bring their capital to this land, to change their lives or to live an alternative experience, and therefore, for obvious necessities, they are looking for real estate in Iceland. The population has reached 330,000, creating both benefits and problems (including precisely the shift in balance towards demand and not supply).
The Reykjavík real estate market has also been bombarded with requests for leases from the multitude of young people (especially students) who have invaded the country in the last three years to improve the language and make an unforgettable educational experience.
It should also be remembered that the government, fearing the ghost of the 2008 default, which marked an economic recession in the country, has literally "blocked" some capitals, adopting significant restrictions in all other sectors for Icelandic citizens. The only sector that managed to save itself, precisely because it was dependent on the foreign market, was the real estate market.
The newly built houses have increased their prices by around 40% compared to last year and, in general, we can say that the Nordic economy is expanding.
However, the debts of the residents also increased and, having to face this period of general crisis, required greater financial resources to the banks, with interest rates becoming more and more expensive.
The government itself had to intervene to lift the current crisis in almost the entire Icelandic economy, becoming the first investor of the same banks. Iceland is therefore the land of paradox. On the one hand the invasive economic crisis that paralyzes the Icelandic market, on the other a slice of the whole system, which could be the only driving engine able to revive the whole economy.
The devaluation of the crown has therefore made a recovery thanks to the inflow of foreign capital, but this was not enough to recover a stalemate. Will the brick market succeed in doubling the values to the point of guaranteeing total recovery? It is hoped that this '' ice age '' can end as soon as possible.
The main rival that has been well placed in all economic sectors and not, is the Asian Hong Kong that, together with New Zealand and Canada, have precipitated drastically. But why have property prices in Iceland increased so much and above all in such a short time?
According to the head of Icelandic national residential research, the problem stems from the lack of new supplies on the one hand and the increase in demand for real estate on the other.
In fact, many investors, especially foreigners, have decided to bring their capital to this land, to change their lives or to live an alternative experience, and therefore, for obvious necessities, they are looking for real estate in Iceland. The population has reached 330,000, creating both benefits and problems (including precisely the shift in balance towards demand and not supply).
The Reykjavík real estate market has also been bombarded with requests for leases from the multitude of young people (especially students) who have invaded the country in the last three years to improve the language and make an unforgettable educational experience.
It should also be remembered that the government, fearing the ghost of the 2008 default, which marked an economic recession in the country, has literally "blocked" some capitals, adopting significant restrictions in all other sectors for Icelandic citizens. The only sector that managed to save itself, precisely because it was dependent on the foreign market, was the real estate market.
The newly built houses have increased their prices by around 40% compared to last year and, in general, we can say that the Nordic economy is expanding.
However, the debts of the residents also increased and, having to face this period of general crisis, required greater financial resources to the banks, with interest rates becoming more and more expensive.
The government itself had to intervene to lift the current crisis in almost the entire Icelandic economy, becoming the first investor of the same banks. Iceland is therefore the land of paradox. On the one hand the invasive economic crisis that paralyzes the Icelandic market, on the other a slice of the whole system, which could be the only driving engine able to revive the whole economy.
The devaluation of the crown has therefore made a recovery thanks to the inflow of foreign capital, but this was not enough to recover a stalemate. Will the brick market succeed in doubling the values to the point of guaranteeing total recovery? It is hoped that this '' ice age '' can end as soon as possible.
