Authored by the expert who managed and guided the team behind the Denmark Property Pack
Yes, the analysis of Copenhagen's property market is included in our pack
Why is Copenhagen emerging as a prime destination for property investment in 2025? Is it the city's robust rental market, its thriving cultural scene, or the relative affordability compared to other European capitals? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Copenhagen's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
How this content was created 🔎📝
1) Copenhagen’s location in Northern Europe makes it a key hub for international travel and business
Copenhagen is a bustling hub for international travel and business, thanks to its prime spot in Northern Europe.
In 2023, Copenhagen Airport saw a record 26.8 million travelers, a 21% jump from the previous year. This surge in passengers highlights the city's strong global connections and its appeal to travelers worldwide.
Big-name multinational companies and hefty foreign investments are flocking to Copenhagen, cementing its status as a business powerhouse. The financial sector, in particular, is thriving, drawing in substantial investments and boosting its reputation as a financial center.
The city's infrastructure is top-notch, with 321 routes to 164 destinations operated by 60 airlines in 2023, making it easy to reach other major European cities. This connectivity is a big draw for businesses and travelers alike.
Copenhagen consistently ranks high in global city indices for business and innovation. The city is buzzing with international conferences and events, further proving its role as a business hotspot.
The growing expatriate community and the rise in international schools show that Copenhagen is a magnet for international professionals and families, offering a welcoming environment for those looking to relocate.
Sources: ETIAS, Invest in Denmark, SAS Group
2) Copenhagen’s varied neighborhoods give you investment options from luxury to affordable housing
Copenhagen's neighborhoods offer diverse investment opportunities, from luxury to affordable housing.
In upscale areas like Copenhagen V, property prices are soaring, with a 1-bedroom apartment costing around €535,809. This shows a strong demand for luxury real estate, making it a hot spot for high-end investments.
Meanwhile, neighborhoods like Aarhus present more budget-friendly options, with 1-bedroom apartments priced at about €294,393. This affordability attracts a wider range of investors looking for entry-level or cost-effective properties.
The city's growing population and urbanization are key drivers of increasing demand for both luxury and affordable housing. As more people move to Copenhagen, rental growth and property values are on the rise, drawing international investors to its stable economy and low vacancy rates.
Government initiatives are also in play, with urban development projects underway to meet the housing needs of the expanding population. For example, 12,000 new dwellings are being constructed around Copenhagen, enhancing investment prospects and addressing housing demands.
Sources: Global Property Guide, Colliers
We made this infographic to show you how property prices in Denmark compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) Copenhagen’s many parks and green spaces make nearby homes more desirable
The city's numerous parks and green spaces significantly boost the desirability of nearby residential areas.
Take Jernbanebyen in Copenhagen, for instance. This new green district is not just about aesthetics; its sustainable design and lush green spaces are expected to raise property values. People are drawn to these areas because they offer more than just a place to live; they promise a better quality of life.
There's a noticeable uptick in demand for homes near these green havens. The city's commitment to creating liveable environments is a big draw for residents who value the quality of life and environmental benefits that come with living near parks. It's not just about the view; it's about the lifestyle.
Living close to parks isn't just good for your soul; it's good for your wallet too. Real estate market reports show that properties next to parks often come with premium prices. In 2023, the average transaction price of owner-occupied flats in the Capital Region went up, reflecting this trend.
Urban planning research backs this up, consistently linking green spaces to an enhanced quality of life. It's no wonder these areas are in high demand. People are willing to pay more for the benefits that come with living near nature.
So, if you're considering buying property, keep an eye on areas with plenty of green spaces. They not only offer a better living experience but also promise a solid investment for the future.
Sources: UBM Development, OpenEdition Journals
4) Copenhagen’s design and architecture reputation makes stylish homes highly sought after
Copenhagen's design and architecture scene is a magnet for stylish home seekers.
With its title as the UNESCO-UIA World Capital of Architecture in 2023, Copenhagen has grabbed the world's attention, leading to a surge in media buzz and accolades. This spotlight has only strengthened its status as a design hub, drawing more eyes to its rich architectural legacy.
Neighborhoods known for their architectural flair are seeing property prices soar, with median rents hitting levels comparable to Manhattan's elite areas. This trend highlights the city's appeal to those who value design excellence in their living spaces.
The influx of design and architecture professionals is no coincidence. Renowned firms like Bjarke Ingels Group (BIG) and Henning Larsen Architects are based here, attracting talent from around the globe and fueling the demand for chic residences.
Living in Copenhagen means being part of a vibrant community where design is woven into the fabric of everyday life. The city's commitment to innovative architecture makes it a top choice for those looking to invest in a stylish home.
Whether you're drawn by the allure of cutting-edge design or the prestige of living in a city celebrated for its architectural achievements, Copenhagen offers a unique blend of tradition and modernity that is hard to resist.
Sources: Wonderful Copenhagen, Wonderful Copenhagen, World's Best Cities, Dezeen
5) Copenhagen’s rich history attracts tourists, making it easy to rent out your property short-term
Copenhagen's rich history and heritage sites are a magnet for tourists, boosting short-term rental demand.
In 2023, tourism in Copenhagen surged, with projections suggesting 64.5 million visitors in 2024. This is a huge leap from the 33 million visitors in 2021, showing how the city's charm is on the rise.
Short-term rentals are in high demand, with a median occupancy rate of 86%. This indicates that many tourists prefer these accommodations, enjoying the flexibility and local feel they offer.
The average daily rate for short-term rentals in Copenhagen is €146, reflecting the premium people are willing to pay to experience the city.
Media often highlights Copenhagen's medieval architecture and vibrant cultural scene, drawing international visitors. Events like the Copenhagen Jazz Festival and the Copenhagen Carnival are major attractions, further increasing short-term rental demand.
These cultural events and the city's historical allure make Copenhagen a top choice for travelers, ensuring a steady flow of tourists eager to explore its unique offerings.
Sources: Airbtics, Wonderful Copenhagen, World's Best Cities
Don't buy the wrong property, in the wrong area of Copenhagen
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
6) Copenhagen’s lively cultural scene draws tourists, making it easy to find short-term renters
Copenhagen's cultural scene is a magnet for tourists and short-term renters.
In 2023, the city experienced a 12% increase in visitors compared to 2019, with a whopping 32.5 million people exploring its streets. This upward trend didn't stop there; by mid-2024, Denmark had already welcomed over 25 million tourists, setting a new record.
Copenhagen is home to a variety of cultural festivals like the Copenhagen Jazz Festival and Roskilde Festival, which draw international crowds. These events not only attract tourists but also create a vibrant atmosphere that appeals to short-term renters seeking unique experiences.
Short-term rentals in the city are thriving, with a typical listing being booked for 314 nights a year and boasting a median occupancy rate of 86%. This high demand translates into a lucrative market, with hosts earning a typical income of €41K in 2023.
For those considering investing in property, Copenhagen's bustling cultural calendar and steady influx of visitors make it an attractive option. The city's lively events and festivals ensure a constant stream of tourists and short-term renters, providing a stable and profitable market.
Whether you're looking to buy a property for personal use or as an investment, Copenhagen's dynamic cultural scene and high occupancy rates offer promising opportunities.
Sources: Interior Daily, Airbtics, Wonderful Copenhagen
7) Copenhagen’s innovative projects, like Nordhavn, offer exciting new investment opportunities
Nordhavn's transformation from an industrial area to a lively urban district has made it a hot spot for property buyers.
With plans to house 40,000 residents and as many workers, Nordhavn is buzzing with demand for homes and offices. This means plenty of chances for smart investments in both living and working spaces.
Nordhavn's appeal isn't just about the numbers; it's also about its green credentials. The Copenhagen Green Economy Leader Report shows how sustainable projects like Nordhavn boost the economy while keeping the environment in mind.
Investors are drawn to Copenhagen's focus on green growth and low carbon emissions, making Nordhavn a prime location for those looking to invest in eco-friendly urban development.
Nordhavn's innovative urban planning is a game-changer, offering new investment opportunities that are hard to ignore. The city's commitment to sustainability and quality of life is a big draw for both residents and businesses.
As Nordhavn continues to evolve, its blend of modern living, workspaces, and environmental focus makes it a standout choice for property investment.
Sources: IDB Blog, LSE Cities, Housing Agency
8) Copenhagen’s booming biotech and IT sectors boost property value growth
Copenhagen's economy is booming, thanks to thriving biotech and IT sectors.
In recent years, Denmark's GDP has been on the rise, with a 3% increase in 2024 and a projected 2.9% in 2025, largely driven by tech growth. This economic upswing is creating more jobs and drawing more people to the city, which in turn boosts the demand for housing.
The biotech scene in Copenhagen is buzzing, with job vacancies expected to jump by 88.0% in 2024. This surge in job opportunities not only attracts professionals but also strengthens the local economy, further supporting property values. The influx of multinational companies and foreign investments in these industries is a testament to the city's economic health.
Copenhagen's property market is holding strong, with positive net lettings and increased rental income in 2023. Low vacancy rates in both residential and commercial properties highlight the high demand, naturally pushing property prices up. The city's appeal as a great place to live and work, along with ongoing infrastructure and public transport upgrades, makes it a magnet for businesses and residents alike.
Sources: World Economics, Nucamp, Vacancysoft, Ticaret, Cision
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Denmark. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Copenhagen’s bike lanes make it perfect for active residents seeking a healthy lifestyle
Copenhagen is a cyclist's paradise, with its vast network of bike lanes encouraging a healthy lifestyle.
In 2022, almost half of all commutes to work or school were by bike, a clear sign of the city's dedication to cycling and its residents' love for staying active. This isn't just about getting from point A to B; it's about embracing a way of life that keeps you fit and energized.
Why is cycling so beloved here? Well, it's a fantastic workout. Low-impact on the joints, cycling helps you build muscle and boost your heart health. Plus, every kilometer you pedal instead of drive brings economic perks to the city, making it a win-win for everyone.
The city has poured over $200 million into cycling infrastructure over the last decade. This investment is evident in the satisfaction of its residents, with a whopping 97% expressing contentment with the cycling conditions. It's not just about having bike lanes; it's about having ones that are well-maintained and easy to use.
Imagine cruising through a city where the bike lanes are as smooth as they are scenic, and where every pedal stroke contributes to a healthier you and a greener city. That's Copenhagen for you.
For those considering a move, the city's commitment to cycling infrastructure is a major draw. It's not just about convenience; it's about being part of a community that values health and sustainability.
Sources: Visit Denmark, World Economic Forum, Visit Copenhagen
10) Eco-conscious buyers and renters are drawn to Copenhagen’s commitment to sustainable urban development
Copenhagen is a hotspot for eco-conscious property buyers and renters thanks to its focus on sustainable urban development.
In 2023, the city introduced a rule that all new buildings over 1000 square meters must meet strict emission standards. These standards are expected to become even tougher, making Copenhagen a leader in reducing CO2 emissions in construction.
Green building certifications like LEED and BREEAM are on the rise here, showcasing the city's commitment to high environmental standards. These certifications ensure buildings are energy-efficient and have a minimal environmental footprint, which is a big draw for eco-minded individuals.
The government sweetens the deal with incentives, requiring Life Cycle Assessments for new buildings. These assessments look at a building's environmental impact over 50 years, considering energy use and materials. This aligns perfectly with the values of eco-conscious buyers and renters.
Living in Copenhagen means being part of a community that values sustainability. The city's initiatives make it a prime location for those who want to live green and reduce their carbon footprint.
With its forward-thinking policies and commitment to the environment, Copenhagen is setting a benchmark for sustainable living that attracts people from all over the world.
Sources: Carbon Neutral Cities, Soletair Power, Growfish
11) Copenhagen attracts many expats looking for homes due to its numerous international companies
Copenhagen is a hub for international companies, especially in the tech sector.
With big names like Knowit, Ciklum, and Novo Nordisk, the city is buzzing with innovation, thanks to cutting-edge 5G and AI technologies. This tech boom is not just about gadgets; it's about creating jobs that draw people from all over the globe.
Back in 2018, the Capital Region of Copenhagen was home to over 305,000 immigrants, mostly from other EU countries. Fast forward to 2019, and immigrants and their descendants made up 13.7% of Denmark's population, with a significant chunk, about 20%, living in the Capital Region. This shows a clear trend: more people are coming to Copenhagen, and they need places to live.
The rental market is feeling the heat, with expatriates driving up demand. This surge is pushing property values higher, especially in neighborhoods that are popular with newcomers. Real estate agents are seeing this firsthand, as they field inquiries from expatriates eager to find a home in the city.
It's not just about numbers; it's about the vibe. The presence of these international companies means a steady stream of expats looking for housing, which is reshaping the city's real estate landscape. The demand is palpable, and it's changing how people buy and rent homes in Copenhagen.
Sources: Nucamp, Copernicus, Spur
Make a profitable investment in Copenhagen
Better information leads to better decisions. Save time and money. Download our guide.
12) Copenhagen’s digital innovation focus draws in tech-savvy people and businesses
Copenhagen is becoming a hotspot for tech-savvy folks and businesses thanks to its digital innovation focus.
The city is buzzing with tech startups, growing at a rate of 8% by 2025, which is above the European average. Companies like Flatpay and Humani are leading the charge in AI, sustainability, and fintech, making Copenhagen a magnet for tech enthusiasts.
What really sets Copenhagen apart is its investment in digital infrastructure. With high internet penetration and very-high-capacity networks, the city is a playground for smart home technologies and IoT-enabled properties. This is a dream come true for tech lovers who need reliable connectivity for both work and play.
The government is also playing a big role with initiatives like the Digital Growth Strategy, launched in 2023. They're putting $138 million into digitalization through 2027, focusing on small and medium-sized enterprises (SMEs). This commitment is a big draw for tech-minded individuals and businesses.
In Copenhagen, the digital landscape is not just about tech companies; it's about creating an environment where innovation thrives across various sectors. This makes it an attractive place for anyone looking to dive into the tech world.
Sources: Nucamp, NextMSC, Trade.gov
13) Copenhagen’s carbon-neutral goal by 2025 attracts eco-conscious investors
Copenhagen is on track to become carbon neutral by 2025, making it a magnet for eco-conscious investors.
The city is transforming old railyards into eco-friendly neighborhoods, a move that not only cuts emissions but also boosts community well-being. These green projects are designed to improve mental, social, and physical health, making them a win-win for residents and investors alike.
Since 2005, Copenhagen has slashed its carbon emissions by 75%, and it's aiming for a full 100% reduction by 2025. This impressive progress highlights the city's commitment to sustainability, a key attraction for those wanting to back green initiatives.
There's a growing demand for properties with energy-efficient features, especially among young professionals and tech workers. This trend is reshaping Copenhagen's real estate market, turning these properties into hot commodities.
The city's focus on sustainable living environments aligns perfectly with the preferences of these investors. This alignment further enhances Copenhagen's appeal, making it a top choice for those interested in sustainable investments.
With remote work on the rise, the demand for such properties is only expected to grow. Copenhagen's dedication to creating sustainable communities is a major draw for investors looking to make a positive impact.
Sources: Carbon Neutral Cities, SAN, Urban Partners
14) In Copenhagen, you’ll enjoy lower utility bills thanks to its focus on renewable energy
Copenhagen is on a mission to become the world's first carbon-neutral capital by 2025.
Thanks to this ambitious goal, property owners in the city are seeing a noticeable drop in utility costs. Wind energy plays a huge role here, as Copenhagen has heavily invested in it, contributing significantly to Denmark's overall wind energy production. This not only helps the country aim for 50% of its electricity from wind but also means more stable and potentially cheaper energy for property owners.
Another major factor is the city's district heating system, which covers 98% of Copenhagen's buildings. This system is shifting towards carbon-neutral heating by swapping fossil fuels for biomass and utilizing large-scale heat pumps powered by wind and geothermal energy. This transition is a win-win, as it cuts down on energy consumption and slashes costs for those owning property in the city.
Sources: Carbon Neutral Cities, State of Green, C40 Case Studies
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.