Iceland House Prices, Rents & Rental Yields (2026)
How much property costs in Iceland, what it rents for and how that compares with neighbouring markets in Northern Europe. City-centre prices per m² rank 5 of 10 in this comparison; gross yields rank 2 of 10.
- Apartment price per m² (city centre)
- $6,323
- 2023
- Apartment price per m² (outside centre)
- $5,224
- 2023
- Gross rental yield (city centre)
- 5.9%
- 2024
- Price-to-income ratio
- 5.6
- 2024
- Rent: 1-bedroom, city centre
- $1,805/mo
- 2023
- Mortgage interest rate (20-year fixed)
- 9.2%
- 2023
Price and rent trends in Iceland
Latest property market indicators
| Indicator | Value | Year | Change | Source |
|---|---|---|---|---|
| Apartment price per m² (city centre)Average asking price per square metre to buy an apartment in city centres | $6,323 | 2023 | -4.0% vs 2022 | Numbeo |
| Apartment price per m² (outside centre)Average price per square metre to buy an apartment outside city centres | $5,224 | 2023 | +7.6% vs 2022 | Numbeo |
| Price-to-income ratioMedian apartment price divided by median annual disposable family income | 5.6 | 2024 | -20.0% vs 2023 | Numbeo |
| Gross rental yield (city centre)Annual rent as a percentage of purchase price, city-centre apartments | 5.9% | 2024 | +0.5 pp vs 2023 | Numbeo |
| Price-to-rent ratio (city centre)Purchase price divided by annual rent, city-centre apartments | 17.1 | 2024 | -8.1% vs 2023 | Numbeo |
| Rent: 1-bedroom, city centreAverage monthly rent of a one-bedroom apartment in the city centre | $1,805/mo | 2023 | +8.3% vs 2022 | Numbeo |
| Rent: 1-bedroom, outside centreAverage monthly rent of a one-bedroom apartment outside the centre | $1,650/mo | 2023 | +20.6% vs 2022 | Numbeo |
| Rent: 3-bedroom, city centreAverage monthly rent of a three-bedroom apartment in the city centre | $2,686/mo | 2023 | +12.4% vs 2022 | Numbeo |
| Rent: 3-bedroom, outside centreAverage monthly rent of a three-bedroom apartment outside the centre | $2,444/mo | 2023 | +24.0% vs 2022 | Numbeo |
| Mortgage interest rate (20-year fixed)Average yearly mortgage interest rate, 20-year fixed | 9.2% | 2023 | +2.9 pp vs 2022 | Numbeo |
Year-by-year data
| Year | Apartment price per m² (city centre) | Apartment price per m² (outside centre) | Price-to-income ratio | Gross rental yield (city centre) | Price-to-rent ratio (city centre) | Rent: 1-bedroom, city centre | Rent: 1-bedroom, outside centre | Rent: 3-bedroom, city centre | Rent: 3-bedroom, outside centre | Mortgage interest rate (20-year fixed) |
|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | — | — | 5.6 | 5.9% | 17.1 | — | — | — | — | — |
| 2023 | $6,323 | $5,224 | 7 | 5.4% | 18.6 | $1,805/mo | $1,650/mo | $2,686/mo | $2,444/mo | 9.2% |
| 2022 | $6,586 | $4,856 | 6.4 | 6.2% | 16.3 | $1,667/mo | $1,368/mo | $2,390/mo | $1,972/mo | 6.3% |
| 2021 | $6,091 | $4,433 | 6.3 | 6.6% | 15.2 | $1,670/mo | $1,413/mo | $2,404/mo | $2,080/mo | 4.4% |
| 2020 | $3,744 | $3,297 | 6.7 | 6.5% | 15.5 | $1,280/mo | $1,127/mo | $1,965/mo | $1,762/mo | 4.0% |
| 2019 | $4,842 | $3,660 | 6.6 | 6.8% | 14.6 | $1,597/mo | $1,287/mo | $2,516/mo | $2,100/mo | 6.3% |
| 2018 | $5,393 | $4,159 | 6.9 | 6.7% | 14.9 | $1,880/mo | $1,528/mo | $2,852/mo | $2,312/mo | 6.4% |
| 2017 | $5,626 | $4,206 | 6.1 | 8.1% | 12.4 | $1,840/mo | $1,533/mo | $2,761/mo | $2,306/mo | 6.5% |
Iceland compared with Northern Europe
| Country | Apartment price per m² (city centre) | Gross rental yield (city centre) | Price-to-income ratio | Mortgage interest rate (20-year fixed) |
|---|---|---|---|---|
| Iceland | $6,323 | 5.9% | 5.6 | 9.2% |
| Denmark | $6,030 | 4.3% | 6.8 | 4.2% |
| Estonia | $3,787 | 3.5% | 10.2 | 4.1% |
| Finland | $7,404 | 3.1% | 8.3 | 3.5% |
| Ireland | $5,218 | 7.4% | 7.5 | 4.5% |
| Latvia | $2,561 | 4.0% | 9.4 | 4.3% |
| Lithuania | $4,378 | 3.8% | 11.1 | 4.1% |
| Norway | $7,484 | 3.9% | 7.8 | 4.3% |
| Sweden | $6,547 | 3.7% | 8.1 | 4.4% |
| United Kingdom | $7,593 | 4.3% | 9.9 | 5.5% |
Related
Prices, rents, yields and mortgage rates: Numbeo (crowd-sourced, national averages of city data). Values in US dollars.