Swedish Real Estate Company, Heimstaden, to Sell 1,700 Properties Skip to content
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Swedish Real Estate Company, Heimstaden, to Sell 1,700 Properties

Swedish Real Estate Company, Heimstaden, is set to sell 1,700 properties as it prepares to exit the Icelandic market. RÚV reports. 

Heimstaden started operating in Iceland some three years ago and currently owns and manages around 1,700 rental apartments in the country. In total, the company owns and manages some 160,000 properties across 10 European nations.

However, in all other nations except for Iceland, pension funds and institutional investors have played large roles investing in Heimstaden.

Read more: Real Estate Market Slows

Gauti Reynisson, Heimstaden’s CEO in Iceland, stated to RÚV that they had been trying to get Icelandic pension funds and investors on board since the beginning.

However, despite some four months of negotiating, no progress has been made.

According to Gauti, even though demand for housing is high, the market conditions for long-term investment are too difficult in Iceland.

Such a large selloff of properties is likely to have a significant impact on the real estate market both in Reykjavík and the rest of the nation. Gauti stated to RÚV that Heimstaden is trying to manage the situation to minimize the impact on renters.

The company plans to start selling the apartments this summer, but Gauti says that they will respect all rental agreements, and people will have the opportunity to rent their apartments until the end of their notice period. Most of Heimstaden’s tenants in Iceland have a 12-month notice period in their contracts.

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