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Connecting Trump who moved the real estate market in Greenland

Connecting Trump who moved the real estate market in Greenland

Connecting Trump who moved the real estate market in Greenland
Connecting Trump who moved the real estate market in Greenland 

A year ago, Lars Parsell Pedersen purchased a 120-foot house for $ 368,000. 

In the mid-year of 2019. He sells and deals with an arrangement in under two months, and the sum he raises is finished 

$ 400,000. This makes the yearly return of over 12%, composes The Wall Street Journal. 

"The market is extremely insane," says Pedersen, 48. "There is a tremendous lack of houses, condos, and everything that springs up. 

The spot he portrays isn't London or New York. The occasion happens in Greenland, where the quickly developing capital of Nuuk, with a populace of 18,000, has a genuine blast in the property showcase.
Local brokers say prices could reach higher levels. One reason is the attention the remote Arctic island has received in recent weeks because of Donald Trump's statement.

He said he would offer to "buy Greenland from Denmark" - an offer that was immediately rejected by the Danes.

Most Greenlanders also accepted Trump's suspension as a very inappropriate joke, but real estate agencies in the country say they have stimulated market momentum.

"We usually get two or three prospective buyers from abroad. However, over the week after Trump's speech, more than 10 people contacted us. , Says Larsrak Egged, who owns a real estate agency based in the capital of Greenland.

According to him, most of the advertised properties are sold within a month and find the most attractive buyer in a few days or even hours.

Kenneth Mortensen, a Knock resident, tells The Wall Street Journal that people around the world know little about his homeland, eastern Canada, between the Atlantic Ocean and the Arctic Ocean.

"Most people think we're riding polar bears here and living in a small hut," he says.

However, enthusiasts who want to invest in Greenland real estate must be prepared for some challenges. The first is that the island's land is a collective property and cannot be bought and sold by private entities.

The construction of a house requires permission from the municipality concerned, as the owner only owns the building but not the land under it.

Greenland is the largest island in the world and also the least populated area on the planet. It occupies 2.17 million square kilometers (19 times more than Bulgaria), inhabited by 56,000 people.

Most of them are descendants of the local Inuit. In some parts of Greenland, the sun does not appear for several months in winter and most of the island is covered with ice.

The rocky coastline and inaccessible mountainous terrain make the construction very complex and expensive. For this reason, there are not many roads, and smaller towns and villages (some less than 50 people) are only accessible by plane, water or skiing
There is only one international airport in Greenland, which is located "in the middle of nowhere", and direct flights to the capital Nuuk and the other two major cities Sisimiut and Ilulissat (each with a population of 5,000 people) are not very regular.

Two additional airports are planned to be built in Nuuk and Elissa in the coming years, with locals hoping to boost the country's tourism industry.

Lars Pedersen moved to Greenland in 2011 to work. "Greenland will appeal to you if you like to live in nature. Personally, I am not very adventurous. I like to enjoy the scenery, but from the balcony with a cup of coffee at hand."

Before buying his house, he lived in an apartment provided by the employer. After World War II, many Greenlanders began living in such state-backed housing or local businesses.

This practice has been maintained to this day. In fact, the government is also the largest employer on the island. Other key sectors are fishing and tourism.

In large cities, most people live in multi-story buildings. According to Kenneth Mortensen, living in an apartment is a lot easier because you don't have to remove a lot of snow in the winter. But there are people who prefer single-family homes.

"In the past, there were only a few families who built their houses, but now more people prefer this option," says Danish-born architect Thomas Reyes, who has lived in Greenland for 20 years.

The capital of Nuuk is located on one of the Greenland Peninsula and most of the usable land has already been developed. Land suitable for construction is very difficult.

Since the locals-only own the building and the right to build, the state has the right to reclaim the land. However, this rarely happens, says Reese.

However, the lack of private ownership means that there are no fences between individual properties, and even a small vegetable garden requires a permit from the municipality. More and more people are moving to big cities in search of better education and better jobs, which also leads to higher property prices.

In small cities, the picture is quite different. Some have abandoned homes that no one wants to buy. Many do not have water, sanitation or even electricity.