Booming real estate market in Westmann Islands Skip to content

Booming real estate market in Westmann Islands

The real estate market in the Westmann Islands is unusually lively at the moment. Many of the current inhabitants are moving into better housing and people on the mainland are looking for holiday apartments.

The Mayor of the Westmann Islands, Ellidi Vignisson, told Fréttabladid he had never experienced such a booming real estate market before.

Vignisson said the local authority had sold over 30 former subsidized-housing apartments in less than a year in a market which has not been particularly lively until now.

Lawyer Helgi Bragason estimates that 15 to 20 properties have been sold in the Westmann Islands every month since the beginning of this year. The Westmann Islands has a population of about 4,500.

Real estate agent Gudbjörg Jónsdóttir said all properties in a good condition are being sold. The price of real estate in the Islands has risen as a consequence by 20 to 30 percent.

A large apartment in an apartment complex which cost ISK 4 million (USD 61,000, EUR 45,000) last year, is now being sold for ISK 5 million (USD 76,000, EUR 56,000).

The mayor said he believes the real estate market in the Westmann Islands is booming because people see an upswing waiting around the corner.

“Fantastic transport improvements lie ahead. We will have a direct connection with south Iceland. It will take 20 minutes to drive through a tunnel and sailing will take a half an hour. The fishing industry has also grown strong and has delivered increased profits,” Vignisson said.

With the economic upswing come increased constructions.

Currently a residential-commercial complex with room for five stores on the ground floor and 15 apartments on the upper floors is being constructed in the center of the Westmann Islands. The construction of a cultural center will begin soon.

There is also a considerable demand for lots for industries and private houses. The local authority estimates that buildings will rise on about 25,000 square meters of land in the next three years.

“This is the greatest construction since the Islands first became inhabited,” Vignisson said.

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