House prices rising faster than wages

In 2016, the average price of a residential house in Tórshavn increased by 14 percent on the previous year, while salaries only increased by 5 percent.

House prices have risen by another 8 percent this year, while the disposable income remains unchanged.

In the past five years, the price hike has been similar to the years leading up to the financial crisis in the 1990s. From 2013 to today, the price of residential and rental properties has risen by some 35 percent in Tórshavn and up to 50 percent in some of the larger towns.

The smaller villages have seen an average house price increase of 17 percent in the 2013-2018 period. Conversely, however, in Sandoy and Suðuroy, house prices have gone down by 17 percent.

Translated by prosa.fo