Unsold apartments in Reykjavík worth over 20 billion ISK

Nearly 260 newly built apartments on densification plots across Reykjavík remain unsold, with only around 40 units sold since the beginning of the year, according to recent data.

The estimated construction cost per apartment is 80 million ISK, bringing the total investment in unsold units to approximately 20 billion ISK.

The developments, located on eight urban plots, generally involved demolishing older buildings to make way for new residential construction. Skipholt 1 is a notable exception, where a historic structure was preserved and built upon. Most of the locations cater to residents seeking a car-free lifestyle.

The first of these properties was put on the market in 2023, during a period of rising interest rates. Since then, Iceland’s Central Bank has begun to cut rates, but the market has yet to respond significantly. A real estate agent interviewed by Morgunblaðið says the sector is waiting for another interest rate cut to help stimulate sales.