Icelandic National Broadcasting Service, RÚV, reports that demand for farmland in western and southern Iceland exceeds supply and the imbalance keeps growing. Most prospective buyers intend to use the farms for recreational purposes.
RÚV quotes real estate broker Magnús Leópoldsson saying that the market for farms in Iceland is small with about 200 properties changing owners every year. He says there is demand for more than that but most buyers are looking for some special characteristics, eg, land that is suitable for forestry or keeping horses. Distance from Reykjavík is a significant factor as well.
Magnús said prices had gone up by 80-100% last year in many popular areas but refused to mention specific prices. RÚV quoted anonymous sources saying that many good properties are selling for ISK 70-80 million.