However previously few years, as builders raced to construct new properties in and across the capital area, costs started to chill. The market took one other hit final yr when WOW Air, considered one of Iceland’s two foremost airways, closed, damaging the tourism market.
In July 2019, the nationwide residential worth index rose by about 4.2 p.c over July 2018, marking its slowest development in 5 years, based on Statistics Iceland.
Asdis Osk Valsdottir, managing director of Husaskjol Actual Property, stated that earlier than the pandemic, a home in Selfoss would possibly promote for 40 million to 50 million kronur ($293,000 to $365,000), the identical as a three-bedroom residence in Reykjavik. In response to the National Registry of Iceland, homes within the capital space at the moment value between 80 million and 110 million kronur ($590,000-$800,000), whereas residences go for 50 million to 64 million kronur ($365,000-$470,000).
When the primary coronavirus case was confirmed in Iceland on Feb. 28, officers have been already getting ready an aggressive nationwide program of testing, quarantining and speak to tracing. The island nation, with about 360,000 residents, by no means totally shut down, although it did impose tight restrictions on massive gatherings and sure industries.
As of Aug. 4, Iceland had reported simply 1,915 Covid-19 circumstances and 10 deaths, based on the World Health Organization.
Regardless of the nation’s success in controlling the virus, its tourism sector was additional disrupted when the borders closed, which in flip threatened its housing market. With many foreigners at the moment unable to enter and lots of locals selecting to not journey overseas, extra Icelanders are exploring the residence and summer-home markets, each of which at the moment are seeing an uptick in gross sales.