Grindavík Exodus Heats Up Housing Market Skip to content

Grindavík Exodus Heats Up Housing Market

By Steindor Gretar Jonsson

grindavík evacuation
Photo: Golli. A Grindavík road damaged by seismic activity, November 2023.

The housing market showed signs of heating up in February, according to a new report from the Housing and Construction Authority (HMS). The biggest change was in the vicinity of the capital area, which HMS attributes to the residents of Grindavík entering the market to buy new homes, RÚV reports.

Grindavík was evacuated in November due to seismic activity. The town has seen four volcanic eruptions just to the north, in the Sundhnúkagígar area, since December. Three houses were destroyed in the January eruption and the Government has since promised to buy homes from Grindavík residents if they choose.

Prices rise and activity increases

According to HMS, an uptick in the housing price index and data on real estate listings show increased activity in the market. More than 1,400 listings were removed in February, indicating completed sales, which is double compared to January. Reykjanesbær, a municipality near Grindavík, saw the number of completed real estate purchase agreements triple compared to January.

The housing price index rose by 1.9% between January and February and has risen by 5.7% in the last year. Outside of the capital area, the bump was 6.4% between January and February and 8.5% in the last year. HMS attributes this to activity from Grindavík residents in municipalities such as Reykjanesbær.

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