Shift in regional property price differences

The difference in price between properties in Tórshavn and elsewhere in the country has decreased this year.

This emerges from the Faroese Economic Council’s autumn report, published this week, which shows that house prices outside Tórshavn have taken a relatively higher jump than in the capital in the past year.

However, this is only a tentative conclusion because rental property prices are not included in the figures, and rental property prices in Tórshavn have seen a bigger increase than owner-occupied properties.

In the 2006-2016 period, the average difference in prices between houses in Tórshavn and elsewhere in the country has been relatively steady –DKK 1m-DKK 1.2m – but in 2016, Tórshavn’s house prices were DKK 1.5m higher.

In 2017, the price difference was around DKK 1.6m, and so far this year it has gone back down to DKK 1.5m.

House prices in Tórshavn have been on a steady rise since 2012 and are now considerably higher than at the previous peak before the financial crisis in 2007. House prices elsewhere in the country have also exceeded 2007 levels.

Translated by prosa.fo