Real estate appraisals are expected to increase more this year than ever before reports Morgunbladid. In Iceland, local authorities levy real estate taxes based on the appraisals.
According to laws on the registration and appraisals of real estate, the appraisals should be based on market prices of each November.
Real estate prices in the greater Reykjavík area have reached historical highs and a new real estate appraisals will mirror those highs reports Morgunbladid.
Real estate prices in the greater Reykjavík area have increased on average 37% in the last 12 months. From 2003 to 2004 real estate prices increased on average 14%; from 2002 to 2003 13%; 8% from 2001 and 2002; 4.5% from 2000 to 2001; and 13.5% from 1999 to 2000.
In the past, these increases have led to higher real estate appraisals in Reykjavík and throughout Iceland. According to the Morgunbladid the real estate appraisals for houses in Reykjavík will increase more than apartments since houses have seen an average increase in price of approximately 42% last year while apartments have only increased by 35%.