Property for sale in Tórshavn

1/ Faroe Islands

Torshavn is the capital and largest town of the Faroe Islands. It is composed of 19,000 inhabitant. Today Tórshavn is quite prosperous. In 1974, the neighbouring villages Hvítanes and Hoyvík  were made part of Torshavn as well as Kaldbak in 1978, Argir in 1997 , Kollafjørður in 2001 and finally Kirkjubøur in 2005 , then Hestur and Nólsoy.

Get more information on property for sale in Faroe Islands.

The Faroe Islands constitute a small economy with a population of approximately 48,000. The economy is highly dependent on the development in the fishing industries, as exports of goods mainly comprise fish products. Since practically all goods for consumption and investment must be imported, the price and quantity of fish determine the income of the Faroese population available for such purposes.

In the early 1990s the Faroe Islands experienced an economic crisis with high unemployment, heavy debt and considerable emigration from the islands. 1995 saw the beginning of a period of significant progress.

Over the last 7-8 years the economy has followed an exceptionally favorable course, which is hardly likely to continue. In 2002 and particularly in the 1st half of 2003 there were indications that the economy is

Fiscal policy does not affect the level of activity in the Faroe Islands to the same degree as in Denmark.

Properties prices in Tórshavn have been going up in recent years. There has, however, been a slight tendency for housing prices to fall in the last quarters, which could be yet another indication of the onset of a slowdown in the Faroese economy. Buying a property in Torshavn for investment purposes seem quite risky due to the low number of tourists and the unlikeliness of exceptional development in the years to come in the area.