Design Firms Predict Limited Growth in Housing Sector This Year

2026-02-19 - 11:24

A new industry survey suggests limited growth in Iceland’s residential development market over the coming year. As reported by RÚV, 55% of managers at architectural and engineering firms expect project levels to remain stable, while 43% anticipate a decline. What's the Story? Survey by the Federation of Icelandic Industries on outlook for residential projects over the next 12 months 55% of architectural and engineering managers expect project levels to remain stable; 43% expect a decline; 1% expect an increase Construction firms developing apartments indicate similar number of flats under construction in a year’s time; high interest rates and municipal charges cited as factors Photo: Golli. Iceland Review. Outlook Remains Cautious According to findings published by the Federation of Icelandic Industries, only 1% of respondents foresee an increase in housing projects. The survey also gathered responses from managers at construction companies developing apartments on their own account. Most indicated that the number of flats under construction in a year’s time is likely to be similar to current levels. High interest rates and increases in municipal charges were cited as factors affecting construction activity. The results point to a period of stability rather than expansion in the housing design and construction sectors. Recent reporting on Iceland’s property market and construction trends is available via Iceland Review. Industry surveys are commonly used to gauge expectations among firms and do not necessarily reflect final output figures.