Real estate in Reykjavik: what makes the region interesting
Home prices changed by +2.7%¹ over the year (by country, Q2 2026). Central bank key rate — 8%⁴. Country's economic growth in 2025 — +1.3%⁵, on average for 2016–2025 — +2.8%⁶ per year. Inflation — 5.6%² (August 2026), income per capita — $89,220³ per year.
Housing market in numbers
Housing prices since 2016
+157%
Housing Price Index · by country · BIS · Q1 2016 – Q2 2026
Annual change in housing prices
+2.7%
by country · BIS · Q1 2016 – Q2 2026
1-bedroom rent
$2,163 per month
Reykjavik · Eurostat · 2021 – 2025
2-bedroom rent
$2,675 per month
Reykjavik · Eurostat · 2021 – 2025
3-bedroom rent
$3,017 per month
Reykjavik · Eurostat · 2021 – 2025
House rent
$4,725 per month
Reykjavik · Eurostat · 2021 – 2025
Central bank key rate
8%
by country · BIS · Jan 2016 – Sep 2026
Loan rate
11%
by country · World Bank · 2016 – 2025
Country economy in numbers
Inflation
5.6%
by country · World Bank · Jan 2016 – Aug 2026
Income per person per year
$89,220
by country · World Bank · 2016 – 2025
Economic growth
+1.3%
by country · World Bank · 2016 – 2025
Unemployment
3.6%
by country · World Bank · 2016 – 2025
Natural anchors
Nature and climate of Reykjavik
≈ m above sea level — low: coastal zone at risk of sea level rise.
Water
3 °C⁷ in January · 13 °C⁷ in July
Precipitation
1,585 mm⁸ per year
Hotels
198⁹ accommodation properties within 50 km radius
Average temperatures and precipitation by month
Loading climate data…
Society, language, religion
How Life is Organized in Reykjavik
Country population
392.4K¹⁰
Political stability
89 out of 100¹¹
Unemployment
3.6%¹²
Population and stability
Country population
392.4K
by country · World Bank · 2016 – 2025
Political stability
89 out of 100
by country · World Bank · 2016 – 2025
Sources
1BIS — Annual change in housing prices, Q2 2026 · Bank for International Settlements (BIS) statistics
2World Bank — Inflation, August 2026 · World Bank, Global Economic Monitor (CC BY 4.0)
3World Bank — Income per person per year, 2025 · World Bank, World Development Indicators / Worldwide Governance Indicators (CC BY 4.0)
4BIS — Central bank key rate, Oct 27, 2026 · Bank for International Settlements (BIS) statistics
5World Bank — Economic growth, 2025 · World Bank, World Development Indicators / Worldwide Governance Indicators (CC BY 4.0)
6World Bank — Economic growth, 2016–2025; calculated from source data · World Bank, World Development Indicators / Worldwide Governance Indicators (CC BY 4.0)
7Open-Meteo Marine — Sea surface temperature, average for January and July 2025