As part of our ongoing project development, we have been in contact with DMD Modular, a European modular construction specialist with direct experience delivering and installing projects in Iceland. We requested an indicative cost range for the construction of the cabin units to compare them with our own estimates based on feedback of Dutch builders.
Their initial indication is €2,300–2,500 per square metre, covering the full standard scope: factory-finished modules (including furnishings), transport from factory to site (including sea freight and in-country logistics), installation, and roof finishing. We are awaiting written confirmation that mobile crane costs on site are included within this scope, which we expect shortly.
Reassuringly, this range is very similar to what our own research showed us.
We want to be transparent: we do not yet have an independent, third-party validation of our construction cost assumptions, as technical drawings are not yet finalised. This is a deliberate consequence of project sequencing — drawings will be developed following zoning approval, which is the immediate next milestone. The current round is therefore pre-technical in nature, and part of its purpose is to unlock that next phase, including a formal cost review by an independent quantity surveyor.
In the meantime, the indicative pricing from DMD Modular aligns closely with our own projections and, in our view, provides a credible market reference. Their hands-on experience in Iceland — a market with well-understood logistical and climatic challenges — gives particular weight to their numbers. For additional context, per-room development costs published by HVS for comparable full-service hotel projects are consistent with the range we are working with.
We plan to stress-tested the financial model against a 10% increase in construction costs. We don’t expect this scenario to materially alter the project’s return profile or its overall viability. We are confident the current assumptions are grounded in market reality, and we will provide a formally validated cost plan as the project progresses through its next phase.