Gross rental yields in Iceland: Reykjavik
The average gross rental yield in Iceland stands at 5.20% (Q2, 2025).
Cities and areas compared
- Reykjavík
- Iceland (all locations)
Historical rental yields in Iceland
View the full rental yield dataset (2024 - Present)
| Last Updated: Apr 04, 2025 Next Update: October 2025 |
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| REYKJAVÍK - All Dwellings | COST (€) | YIELD (p.a.) | |
| TO BUY | MONTHLY RENT | ||
| Reykjavík (all locations) | |||
| Studio | €324,042 | €1,045 | 3.87% |
| 1-Bedroom | €473,170 | €2,160 | 5.48% |
| 2-Bedroom | €612,544 | €2,509 | 4.92% |
| 3-Bedroom | €668,293 | €2,927 | 5.26% |
| Reykjavík mainland avg. Rental Yields | 4.88% | ||
| ICELAND - All Dwellings | COST (€) | YIELD (p.a.) | |
| TO BUY | MONTHLY RENT | ||
| Iceland (all locations) | |||
| Studio | €294,774 | €941 | 3.83% |
| 1-Bedroom | €431,359 | €2,160 | 6.01% |
| 2-Bedroom | €526,132 | €2,439 | 5.56% |
| 3-Bedroom | €591,638 | €2,718 | 5.51% |
| 4+Bedroom | €691,986 | €2,927 | 5.08% |
| Iceland avg. Rental Yields | 5.20% | ||
| All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you'll really earn) are typically around 1.5% to 2% lower. Source: Global Property Guide and Fasteignir |
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Research Methodology:
Our rental yield analysis is conducted biannually to ensure up-to-date insights. We assess 1-bedroom, 2-bedroom, and 3-bedroom properties across the largest areas in Iceland, comparing median rental prices with median purchase prices to determine gross rental yields.
We source data from a leading local property platform, capturing both asking rents and list prices to reflect current market conditions. The gross rental yield is calculated using the following formula:
(Median Monthly Rent × 12) ÷ Median Purchase Price × 100
For example, if the median monthly rent is €500 and the median purchase price is €100,000, the yield is calculated as:
(€500 × 12) ÷ €100,000 = 6% Gross Rental Yield
Note: NET yields vary from country to country, but are usually 1.5-2% lower.