Low interest rates and increasing supply are helping to offset Reykjavik’s steep prices and draw more buyers into the market.
The struggling UK sales market has propelled the nation ten places down the global house price index list, Knight Frank has revealed, and has been overtaken by a list of countries unknown previously for their perky housing markets.
The home market in Reykjavik is “booming,” said Jason Kristinn Olafsson, a sales representative with Miklaborg Real Estate. Prices have increased by 10 to 15 percent in the last 18 months, Mr. Olafsson said, and the average sales price is between 40 million and 50 million krona (about $363,000 to $454,000).
It looks set to be a week packed with big financial milestones. In the US, the Federal Reserve will raise interest rates, putting the country on a path towards getting back to a normal price for money. In the Netherlands, a tense election may deal the fragile eurozone another blow. In this country, Theresa May could finally trigger Article 50, starting the process of taking the UK out of the European Union.
Iceland will lift all capital controls on its citizens, businesses and pension funds from Tuesday.
Capital controls, such as those to restrict money flowing in and out of the country, were imposed in 2008 after the country's biggest banks collapsed.
Opt in here