House prices have tripled since 1985

The price of houses and flats in the capital has almost tripled since 1985, a new report from the Governmental Bank shows.

The report also shows that the average square-metre price of flats is now almost twice as high as the average square-metre price of residential houses.

Since the 1990s, this difference remained steady, but it has increased since 2007.

Today, flats are far more expensive in the capital than residential houses, with an average square-metre price difference of some DKK 10,000. The average square-metre price of flats in Tórshavn is currently DKK 26,412, compared with DKK 16,382 for residential houses, according to the report.

One reason for this difference is that residential houses are generally older than the flats.

The authors of the report say this may also be an indication that there is currently a higher demand for smaller homes.

See also:

Huge differences in house prices

House prices rising faster than wages

Translated by prosa.fo