Icelanders buy their first apartments like before the crash

More buyers bought their first property in Iceland now in the second quarter of 2018 than during any quarter since the economic collapse of 2008, says a new report by The Housing Financing Fund (HFF). 905 properties were sold to first time buyers, which made for about a quarter of all properties sold. The rental price index decreased by 2,4 per cent between months, the report also finds, more than ever in the history of HFF analysis.

Reikjavik, capital, property, apartments, Icelanders, buy, real estate

Rent got cheaper in the past month and Reykjavik apartments got closer to countryside property in price.

Most first time buyers were proportionally from the countryside, The Westfjords, Northwestern Iceland and Reykjanes Peninsula, where around 30 per cent of buyers were investing in their first property. In recent months, the price difference has slowly decreased between property in the countryside and the capital, says the report.

The Icelandic construction industry, which has had its ups and downs since the turn of the millennium, is also talked about in the HFF report. Around 12 per cent more staff have been employed by the construction industry in the past year, the report also states. At the same time, revenue in the construction industry has increased by more than 8 per cent.