Iceland Mag

3 Reykjavik

Iceland Mag

4% of all apartments in Reykjavík listed on Airbnb

By Staff

  • Not enough hotels? Nearly 4% of all properties in the capital are being rented out on Airbnb, according to a new study. Photo/Daníel Rúnarsson.

According to a report prepared by the University of Bifröst for the Ministry of Industries and Innovation nearly 1,900 properties in Reykjavík are listed on the website airbnb.com. This means 4% of all residential apartments in the capital are being rented out to tourists.

The study found 3,400 Icelandic properties, apartments or individual guest rooms, listed on rental websites which cater to foreign travellers. The study focused on airbnb.com, which has been the most popular website of this kind, finding that the vast majority of rental properties are located in Reykjavík, or 1,900 properties. The study also found that only a fraction of these properties had been registered with the authorities as being rented to travellers. Only 13% of the properties had been issued necessary permits.

The report concluded that shortage of hotel rooms is the primary reason home rental to tourists has expanded in recent years. This expansion of private lodging has in effect allowed tourism to grow faster than otherwise would have been possible.

The authors of the report argue that the authorities must make it simpler for private parties to register their properties for tourist rental, thus ensuring all proper taxes and fees are paid.

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