Property in Iceland is seeing incredible growth as investors flock to the remote North Atlantic island in search of opportunities

Iceland is undergoing somewhat of a renaissance at the moment and UK investors are considering a flight north in search of the chance to snap up a bargain in the windswept and volcano ridden landscape.

Property in Iceland is focused on the capital Reykjavik, which has a limited supply of property and yet is now seeing an influx of international capital keen to take advantage of the rising prices and formidable opportunities for capital growth that investors can tap into.

Reykjavik has a population of just over 122,000 and is likely to be the first port of call for both tourists and prospective investors. The next largest town is Kopavogur, home to a mere 32,000 souls.

In 2017 property in Iceland rose by an incredible 23% for the year to June.

The double figure growth was driven by a combination of a buoyant tourism market and a self fulfilling increase in Icelandic property prices as investors seek a piece of the pie at a time when international interest in Anglophone cities such as Sydney, New York and London is waning.

The country has one of the lowest population densities in the world at 3.3 people per square kilometre. By comparison England has 426 people per square kilometre.

There are a few eccentricities about the Icelandic property market and real estate in Iceland.

Heating is provided by the country’s geothermal reserves. The country – which describes itself as the home of renewable energy – is close to 100% powered by its impressive renewable energy resources.

The extremely low population density means that there are considerable opportunities for further real estate developments and the potential for foreign investors to get a piece of the fast growing property market.

A purchase by foreigners also requires permission from the Ministry of Justice if you are not resident in Iceland. This is however considered a technicality.