Ever dreamed of owning a home in Iceland? The real estate market in Reykjavik, the capital of Iceland, is "booming" according to Jason Olafsson of Miklaborg Real Estate. In just the last year and a half the real estate prices have increased between 10-15%. The average home price is between 40 and 50 million krona, which is equal to nearly $363,000 to $454,000. One krona is equal to $0.009.

It is uncommon for foreign home buyers to purchase real estate in Iceland, as permission is needed. International buyers need permission to buy property in Iceland. It is rather easily attained, but more accessible for E.U. citizens than other nationalities. states Vilhjalmur Bjarnason, chairman of Hagsmunasamtok Heimilanna, an industry association. However, once a foreign investor receives permission from the Icelandic government to buy property, there are no restrictions on ownership. A Real Estate Lawyer is very rarely needed, Mr. Bjarnason states, The real estate agency has the legal authority and handles buying and selling.

Due to the shortage of housing in Reykjavik, property sells very quickly and apartments in downtown usually sell within days. Prices are very inflated, mainly because of shortage in housing, said Bjarnason. Very few new homes or building projects have been initiated by the municipal authorities in Reykjavik since 2008.

If you are looking to invest in foreign property, brush up on your Icelandic, learn to convert the krona and grab some hot real estate in Reykjavik, while the prices are hot!