Iceland’s property market has been extremely active this year, despite the pandemic and the recession that came with it.
A new report from the housing and infrastructure agency says the market came to life when assembly limits were relaxed this spring and the central bank dropped interest rates to their lowest ever levels. Since then, the market has remained extremely active.
July this year saw the highest number of purchase contracts processed since 2007 and it is believed figures from this September could beat that record when they are finally released. The number of issued purchase contracts so far this year is up nine percent on the same period last year and the price of homes has also gone up—by an average of 3.7 percent in the capital region.
The proportion of first-time buyers on the market has never been higher. Roughly one third of all property purchased in Iceland during the third quarter of 2020 went to first-time buyers.