Housing price growth shows signs of slowing in the Faroe Islands

Housing prices in the Faroe Islands are still rising, but the pace of growth may be easing, KVF reports. Detached houses in Tórshavn averaged 4.8 million kroner during the first nine months of the year, 4 per cent more than last year’s average.

Apartment prices in Tórshavn have risen 9 per cent so far this year, according to Betri Heim. Outside the capital, detached houses averaged 2.4 million kroner, up 8 per cent from last year.

The average price of a detached house was 2.8 million kroner in Skálafjørður and 2.9 million kroner in Klaksvík. Those figures were 5 per cent and 15 per cent higher than last year, respectively.

Betri Heim said prices have continued to rise despite a larger supply of houses and apartments this year than in previous years, as well as higher interest rates. However, the company has recently seen buyers make offers below asking prices across the country, said its director, Kára á Dunga.