The number of bills of sale in the capital region rose by about 30 percent in April 2007 compared to April 2006. Experts believe the increase can be attributed to optimistic Icelandic consumers and easier financing.
According to financial experts at Kaupthing Bank, many are inspired to invest in property due to easy access to loans in foreign currencies, which now total ISK 103 billion (USD 1,6 billion, EUR 1,2 billion) across Iceland, about 14 percent of the total debt of Icelandic families, ruv.is reports.
The total property sale turnover increased by 43.5 percent between April 2006 and April 2007 – from ISK 17 billion (USD 265 million, EUR 195 million) in April last year to ISK 24.3 billion (USD 378 million, EUR 279 million) last month.
Experts have cast doubt on whether the real estate market in the capital region can continue to do business at such a high rate. Construction and apartment sales have surpassed demand as compared to population growth.
Thus experts have predicted a recession in the market in the near future even though nothing indicates that will happen.