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Real Estate Prices up 13.6 Percent in 12 Months

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Real Estate Prices up 13.6 Percent in 12 Months

Reykjavík with Hallgrímskirkja in the background

Photo: Páll Stefánsson.

Real estate prices in the Reykjavík capital area have gone up by 13.6 percent in the past 12 months. This is the largest annual increase in real estate prices since 2007, according to Landsbankinn.

The month to month increase in October in the capital area was 2 percent, that is, 1.8 percent for multi-family homes and 2.2 percent for single-family homes. In the past 12 months, prices of multi-family homes have gone up by 13.6 percent, while single-family home prices have increased by 14.2 percent.

Interestingly, the annual price increase of single-family homes exceeds that of multi-family units for the second month in a row. That has not happened since the spring of 2012. For the past six months, price increases of single-family homes have been 10.6 percent and those of multi-family homes 8.6 percent.

Real prices of multi-family homes have risen by 50 percent since the beginning of 2011, whereas those of single-family homes have gone up by 30 percent.

So far this year, sales of single-family homes exceed those of last year.

In the past four years, new apartments have made up only 3 percent of real estate sales in Reykjavík (this year, only 2 percent), while in Garðabær, that rate was 26 percent in the past four years (over 40 percent this year).

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