Key regions: Europe, Brazil, France, Asia, United States
The Residential Real Estate market in Iceland has been experiencing significant growth in recent years, driven by customer preferences, local special circumstances, and underlying macroeconomic factors.
Customer preferences: One of the key customer preferences in the Icelandic Residential Real Estate market is the desire for spacious and modern properties. With a growing economy and a higher standard of living, there is an increasing demand for larger homes with modern amenities and high-quality finishes. Additionally, customers are also seeking properties that offer energy efficiency and sustainability features, reflecting the country's commitment to environmental sustainability.
Trends in the market: One notable trend in the Icelandic Residential Real Estate market is the shift towards urban living. As more people move to cities for employment opportunities and access to amenities, there is a growing demand for residential properties in urban areas. This trend is further fueled by the limited availability of land in urban centers, leading to higher property prices and increased competition among buyers. Another trend in the market is the rise of luxury properties. With an influx of high-net-worth individuals and foreign investors, there has been a surge in demand for luxury homes and high-end apartments. These properties often offer exclusive features such as breathtaking views, private amenities, and proximity to cultural and recreational facilities.
Local special circumstances: One of the local special circumstances that has contributed to the development of the Residential Real Estate market in Iceland is the country's unique geography. Iceland's stunning natural landscapes, including volcanoes, glaciers, and hot springs, attract tourists from around the world. This has led to an increase in demand for vacation homes and rental properties, particularly in popular tourist destinations such as Reykjavik and the Golden Circle.
Underlying macroeconomic factors: The growth of the Residential Real Estate market in Iceland can be attributed to several underlying macroeconomic factors. Firstly, the country's strong economic performance and low unemployment rate have increased consumer confidence and purchasing power, driving demand for residential properties. Additionally, low interest rates and favorable mortgage lending conditions have made it easier for individuals to access financing and invest in real estate. Furthermore, Iceland's growing population, fueled by immigration and a higher birth rate, has also contributed to the increased demand for housing. This population growth, coupled with limited housing supply, has put upward pressure on property prices, creating a favorable market for sellers. In conclusion, the Residential Real Estate market in Iceland is experiencing growth due to customer preferences for spacious and modern properties, the trend towards urban living, the rise of luxury properties, local special circumstances such as tourism, and underlying macroeconomic factors including strong economic performance and population growth.
Data coverage:
Figures are based on total and average value of residential real estate, residential estate transactions and leases.Modeling approach:
Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.Forecasts:
We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.
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