“Tunnel effect” boosts house prices in Runavík

The national population has again topped 52,000, with an increase of 807 citizens from 1 December 2018 to 1 December 2019.

The largest growth was registered in two of the country’s largest municipalities.

While Tórshavn municipality’s population grew by 1.6 percent in the past year, Runavík municipality saw the biggest increase at 3 percent.

Runavík saw a similar growth in the previous year too, and this has now led to a boost in house prices in the area. 

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According to mayor Tórbjørn Jacobsen, house prices are now approaching the same levels as in Tórshavn.

He believes this growth is caused by what he terms “the tunnel effect”, referring to the Runavík-Tórshavn subsea tunnel, which is due to open later this year.

“The travel time between Runavík and Tórshavn will be reduced from one hour to 12-15 minutes,” he says. “The tunnel will merge the two areas into a single unit containing more than half of the country’s citizens.”

Translated by prosa.fo