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Staggering Increase in Rental Prices in Reykjavík

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Staggering Increase in Rental Prices in Reykjavík

Houses in Reykjavík

In Reykjavík. Photo: Páll Stefánsson.

The rental prices for apartments in Reykjavík and neighboring towns has increased significantly in the past years, exceeding the overall price development. While rental prices have increased by 40 percent since 2011, the consumer price index has only increased by 16 percent in the same period.

Chair of the Association of Tenants in Iceland Jóhann Már Sigurbjörnsson told Morgunblaðið that there is a severe shortage of rental apartments in the capital region and that this is the main reason for the staggering increase in rental prices.

This week Mayor of Reykjavík Dagur B. Eggertsson and CEO of Íslandsbanki Birna Einarsdóttir signed an agreement on the planning of the bank’s land on Kirkjusandur where 300 new apartments will be built, 180 of which the city will be responsible for.

“We will emphasize small and medium-size apartments, not least for the rental market,” Dagur told visir.is.

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