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
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

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. 

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