Real Estate Market in Iceland on a Roll Skip to content

Real Estate Market in Iceland on a Roll

The year-to-date turnover from certified sale contracts for real estate in Iceland was nearly ISK 321 billion (USD 4.9 billion, EUR 3.5 billion) as of September 7, compared with an annual turnover of ISK 269 billion (USD 4.1 billion, EUR 3.0 billion) in 2006.

The number of sale contracts reached 10,500 on September 7, compared with 11,700 contracts for the entire year in 2006, Morgunbladid reports.

Haukur Ingibergsson, director of the Land Registry of Iceland, said a number of factors contribute to this boom in property sales, like the increase in population, high employment rates, greater purchasing power, economic growth, a general sense of optimism and a varied supply of housing.

In Iceland only about 25 percent of those who work as real estate agents have the relevant certification. In comparison, 95 percent of real estate agents in Norway have a degree in real estate.

According to Ingibjörg Thórdardóttir, head of the Association of Real Estate Agents in Iceland, the situation is improving. The University of Iceland and Reykjavík University offer education in this field and more and more of the association’s members are interested in earning a degree in real estate.

A legal amendment from 2004 states that real estate agencies should encourage their employees to study real estate and earn a university degree so they can offer their clients the sound advice.

“Too many work in real estate without the proper certification,” Thórdardóttir said. “Clients are entitled to advice throughout the process from people who have the necessary knowledge.”

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