Key regions: Germany, Europe, Asia, United States, United Kingdom
The Residential Real Estate Transactions market in Iceland has been experiencing significant growth in recent years.
Customer preferences: One of the main factors driving this growth is the increasing demand for residential properties in the country. This can be attributed to a number of customer preferences, including the desire for homeownership, the need for larger living spaces, and the attractiveness of real estate as an investment.
Trends in the market: One of the key trends in the Icelandic real estate market is the rise in property prices. This trend can be attributed to a combination of factors, including limited housing supply, population growth, and low interest rates. As a result, many buyers are willing to pay higher prices for properties, leading to an increase in residential real estate transactions. Another trend in the market is the growing popularity of urban living. With the majority of the population living in urban areas, there is a high demand for residential properties in cities and towns. This trend is driven by factors such as proximity to amenities, job opportunities, and social activities.
Local special circumstances: Iceland's unique geography and natural beauty also play a role in the development of the residential real estate market. The country's stunning landscapes, including volcanoes, glaciers, and hot springs, attract tourists and expatriates, creating a demand for vacation homes and rental properties. Additionally, the government has implemented policies to encourage foreign investment in real estate, further boosting the market.
Underlying macroeconomic factors: Several macroeconomic factors contribute to the growth of the residential real estate market in Iceland. The country has experienced a strong economic performance in recent years, with low unemployment rates and steady GDP growth. This has increased consumer confidence and purchasing power, leading to higher demand for housing. Furthermore, the low interest rate environment in Iceland has made it more affordable for individuals to take out mortgages and invest in real estate. This has stimulated demand and led to an increase in residential real estate transactions. In conclusion, the Residential Real Estate Transactions market in Iceland is developing due to increasing customer preferences for homeownership and larger living spaces, as well as the attractiveness of real estate as an investment. The rise in property prices, growing popularity of urban living, and the country's unique geography and natural beauty are also contributing to the market's growth. Additionally, favorable macroeconomic factors such as low unemployment rates and low interest rates are driving demand for residential properties.
Data coverage:
Figures are based on total and average revenue of residential real estate transactions (sales).Modeling approach:
Market size is determined by a 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 considered at a country-specific level.
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