Negative interest adds pressure to property market

24.02.2020 - 12:28
Aktuelt
Negative interest adds pressure to property market
Private bank clients with high deposits are turning towards property investment as negative interest rates are about to be introduced
 

A consequence of the upcoming introduction of negative deposit interest rates for private bank clients appears to be that many are withdrawing their deposits and investing in real estate instead.

Both of the country’s leading banks, BankNordik and Betri, have announced that they will be introducing negative deposit interest for private clients, on 1 March and 1 April, respectively.

 >> SEE ALSO Negative interest rates for private bank clients

“We have noticed an increased interest among private bank clients with high deposits for buying rental properties since the negative interest rates were announced,” says Jákup Andrias Hansen, property agent at real estate firm Betri Heim.

Great and sudden investment in rental properties usually results in a price hike, and Hansen confirms that this also appears to be the case now.

 

Translated by prosa.fo

 
Nýggjastu sendingar í ÚV
Mánadag 30. mars
Nón 30. mars 2020
106983
Mánadag 30. mars
Norðurljóð 30.mars 2020
106802
Sunnudag 29. mars
Guðstænasta úr Havnar kirkju
106924
Nýggjastu sendingar í SV
Sunnudag 29. mars
Andakt við Ove Froyseth
106934
Sunnudag 29. mars
Guðstænasta úr Havnar kirkju
106923
Fríggjadag 27. mars
Studio71 - 5 dokumentarar
106848
Hósdag 26. mars
Korona konsert við Bárði á Lakjuni
106790
Hósdag 26. mars
Norrøna
106783