Property valuations rise by 9.2% year-on-year
The property valuation of apartments increases by 10.2%. mbl.is/Eggert Jóhannesson
Property valuations have increased by 9.2% nationwide compared to last year, with the largest increases observed in South and North Iceland. This information was highlighted in a press release from the Housing and Civil Engineering Institute ( HMS), presented at an ongoing public meeting on the development of property valuations for 2026.
Apartment valuations have risen by an average of 10.2%, while summer house valuations saw an 11.5% increase. Commercial property valuations experienced a more modest rise of 4.8%.
Grindavík v aluations r emain u nchanged
Despite the general upward trend, HMS has decided to keep property valuations in Grindavík unchanged due to market inactivity and ongoing uncertainty in the municipality. In contrast, neighboring municipalities in the South experienced significant increases, reflecting strong housing market demand over the past year.
Frá Grindavík. mbl.is/Eggert Jóhannesson
In North Iceland, property valuations also rose above the national average, driven largely by increased value in both commercial and holiday properties.
Valuation methodology and f uture r evisions
HMS stated that the methodology used to calculate property valuations remains consistent with recent years and is primarily based on the purchase prices of comparable properties.
However, the institute announced plans to review and potentially revise the methodology used to assess commercial property values for the 2027 valuation cycle. The aim is to increase transparency and ensure that valuations more accurately reflect actual market value.
