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
What will happen in Copenhagen’s real estate market? Will prices go up or down? Is the city still a hotspot for foreign investors? How is Denmark’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with real estate agents, property developers, and clients who buy properties in Copenhagen, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) More foreign investors will enter Copenhagen’s housing market because of political stability and economic growth
Foreign investors are eyeing Copenhagen's residential market thanks to Denmark's political stability and economic growth.
Denmark's economy is on a roll, with a GDP growth of 3% in 2024 and a promising 2.9% expected in 2025. This economic boom is making Denmark a hotspot for those wanting a slice of the Nordic and European markets. The country's reputation for political stability only sweetens the deal, offering a safe haven for investors.
In 2024, international investors are set to make up over 50% of investments in Copenhagen's residential market. This shows just how much foreign interest is brewing. The mix of a stable political scene and a thriving economy is creating a perfect storm for investment opportunities.
Copenhagen's housing market is buzzing, with prices and demand on the rise. Rents for new residential properties are expected to jump by more than 10% in 2024. This surge is fueled by high demand and not enough new builds, making it a goldmine for investors chasing solid returns.
Globally, investors are leaning towards stable markets, and Denmark fits the bill perfectly. Its steady economy and political calm make it a top pick for those looking to invest wisely. The limited new construction in Copenhagen adds to the allure, promising potential for growth and profit.
With these factors in play, it's no wonder that foreign investors are increasingly drawn to Denmark. The combination of economic growth and political stability is hard to resist, making Copenhagen a prime target for residential market investments.
Sources: Invest in Denmark, Colliers
2) Foreign buyers in Copenhagen will favor sustainable and energy-efficient properties
In recent years, Copenhagen has become a focal point for sustainable living, and this trend is expected to continue as foreign interest in its real estate market shifts towards sustainable and energy-efficient properties. The Danish government has been proactive in promoting eco-friendly building practices, investing EUR 161 million in the Climate Adaptation Plan, which focuses on green district heating and sustainable construction. This makes eco-friendly homes more appealing and valuable to investors.
Global awareness and concern about climate change have been on the rise, driving demand for sustainable homes. International buyers, in particular, are drawn to Denmark's stable economy and transparent market practices, with a strong preference for energy-efficient homes. This is further supported by the expectation that 90% of Danish homes will have energy performance certificates by 2025, highlighting Denmark's commitment to energy efficiency.
Moreover, Copenhagen's ambitious climate plan aims to make it the first carbon-neutral capital by 2025, focusing on reducing energy consumption and implementing new technologies. This plan, along with successful sustainable real estate projects like the Greenpoint complex and Nordhavn's timber residential building, showcases Copenhagen's leadership in green living and sustainable architecture. These efforts have not gone unnoticed, as Copenhagen has been recognized globally for its sustainability initiatives, making it a prime destination for eco-conscious investors.
Sources: KK Sites, Wonderful Copenhagen
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) Property prices in Copenhagen's outer suburbs will rise as remote work becomes more common
The outer suburbs of Copenhagen are seeing a rise in property prices, and this trend is closely linked to the growing prevalence of remote work. In 2023 and 2024, we saw a significant shift in how people work, with more individuals opting to work from home. This change has led to an increased demand for larger living spaces, which are more commonly found in suburban areas.
Denmark has been a leader in adopting remote work, thanks to its excellent internet quality and supportive infrastructure. This makes it an attractive place for remote workers who are looking for more space and comfort. As a result, many people are moving away from the city center to the suburbs, where they can find larger homes and enjoy a better quality of life.
In 2024, property prices in Denmark's suburbs rose by 4.2%, with areas like Nordsjælland experiencing a 4.1% increase in the third quarter alone. This indicates a strong demand for suburban living spaces, driven by the flexibility and benefits of remote work. Improved infrastructure and transport links to these outer suburbs have also made them more desirable, further contributing to the rise in property values.
Sources: Global Property Guide, NordLayer
4) Demand for accessible and senior-friendly housing will grow as the population ages
As we look back at the past few years, it's clear that the aging population in Denmark has been steadily increasing. In 2023, people aged 65 and above made up 20.6% of the total population, up from 20.4% in 2022. This trend is expected to continue, leading to a greater need for housing that caters to seniors.
Many Danish seniors have expressed a desire to age in place, meaning they want to stay in their current homes or communities as they grow older. This preference highlights the importance of having accessible and senior-friendly housing options available. Additionally, the senior housing market in Copenhagen has seen unprecedented demand growth, with absorption rates doubling pre-pandemic levels, indicating a strong interest in such housing solutions.
Moreover, demographic projections suggest that the population aged 80 and above will continue to grow significantly over the next 25 years. This growth, driven by the aging Baby Boomer generation, will require a substantial increase in senior housing options to meet the needs of this expanding demographic.
Sources: Trading Economics, NIC MAP Vision Senior Housing Market Outlook Report
5) Short-term rental returns will drop as rules get stricter and competition grows
Short-term rental regulations are tightening in cities like Copenhagen, especially in 2023 and 2024.
These new rules, like the 70-night rental limit per year for primary residences, aim to keep housing available for locals. This means fewer chances for hosts to rent out their places, which cuts into their earnings.
Enforcement is getting tougher too. If you don't display the National Identification Code, you could face hefty fines. This financial pressure is making some hosts rethink offering short-term rentals, which reduces market supply.
Meanwhile, competition is heating up. In 2024, 76% of people noticed more competition, not just from other rental platforms but also from traditional hotels. This forces hosts to lower prices to attract guests, squeezing their profits.
With these changes, short-term rental yields are likely to decline as regulations tighten and competition increases.
Sources: Airbtics, Studio Paci, Enso Connect
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6) Rents for student housing will rise as more international students study in Copenhagen
As more international students choose Copenhagen for their studies, the demand for student housing is expected to rise. This is largely due to the increasing enrollment of international students at institutions like the University of Copenhagen, which has seen a significant uptick in international student numbers in recent years.
The rising demand for student accommodation is evident from surveys like the one conducted by HousingAnywhere, which found that rents for student housing in Copenhagen have been increasing sharply. This trend was particularly noticeable in the second quarter of 2024, as more students sought to study in the city.
Adding to the challenge is the limited availability of student housing in Copenhagen. Many students have had to turn to private rentals due to the shortage of dedicated student accommodations, which has further driven up rental prices. The Housing Foundation in Denmark has noted that prices for single rooms can range significantly, and these prices are likely to increase as demand continues to outpace supply.
Sources: Price Range Overview for Student Accommodations, Quarterly Survey Finds Rents for Student Housing in Europe Increasing, Housing for International Students at the University of Copenhagen
7) Rents in Copenhagen will rise as the population grows and housing remains scarce
The population of Copenhagen has been steadily increasing, with a metro area population of 1,401,000 in 2025, marking a 0.72% increase from 2024. This consistent growth over the years, including a 0.8% increase in 2023, indicates a rising demand for housing.
The housing supply in Copenhagen needs to grow significantly to meet this demand, with estimates suggesting the need for 5,000-9,000 new dwellings per year for the next 20-30 years. However, the number of new housing starts has plummeted due to high construction costs and increased interest rates, creating a significant gap between supply and demand.
This gap has led to rapid and unstable housing price development, with only relatively wealthy citizens being able to afford living in the city. The high demand for rental properties, driven by the growing population and affordability concerns, further exacerbates the situation.
Sources: Macrotrends, Copenhagen Economics, Colliers
8) Affordable housing projects will keep prices steady in some neighborhoods, avoiding sharp rises
Affordable housing projects can play a crucial role in stabilizing property prices in certain neighborhoods. In Copenhagen, the Common Housing Policy requires municipalities to reserve up to 25% of their housing stock for affordable units, which helps maintain a steady supply of housing options for people of all income levels. This policy has been particularly effective in disadvantaged areas, where it helps balance the housing market and prevent sharp price increases.
Looking at examples from both Amsterdam and Copenhagen, these cities have successfully implemented systems that support affordable housing, ensuring a consistent supply of such units. This approach has been key in maintaining stable property prices, as it addresses the demand for affordable housing and prevents market imbalances. Additionally, the Danish government has committed significant funds to increase affordable rental housing, which is expected to further stabilize prices as more units become available.
The need for affordable housing in Copenhagen is especially pressing, as highlighted by an EU report that noted a significant increase in the number of households burdened by housing costs. By increasing the supply of affordable housing, economic models suggest that property prices can be stabilized, benefiting both current residents and potential buyers. This is supported by academic research, which indicates that integrating affordable housing into market developments can contribute to a more balanced housing market.
Sources: GMFUS, Copenhagen Post, CCHPR
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) Rental prices will stabilize due to stricter rent controls, but some investors might be deterred
Stricter rent control policies, like the ones introduced in Denmark in 2022, aim to stabilize rental prices by capping annual rent increases. This means that tenants are protected from sudden and significant rent hikes, which can be especially beneficial for students and low-income households.
For example, before the rent cap, landlords could increase rents by up to 8.8% in a year, but with the new policy, increases are limited to 4%. This helps keep rental prices more predictable and manageable for tenants, reducing their financial burden and improving their satisfaction with housing conditions.
However, these policies can also deter some investors. Real estate experts have raised concerns about the profitability of rental properties under such controls. Investors might find the capped returns less attractive, leading to a decrease in the number of new rental properties developed, as seen in other cities with similar policies.
Sources: Gorrissen Federspiel, Copenhagen Post, DiVA Portal
10) Tech-savvy buyers will be drawn to new developments featuring standard smart home technology
Smart home technology is quickly becoming a must-have in new property developments, especially in tech-forward cities like Copenhagen.
In Denmark, the popularity of smart home devices is on the rise. The market was valued at USD 334.9 million in 2023 and is expected to skyrocket to USD 1684.4 million by 2030. This growth is fueled by a strong annual increase of 26% from 2024 to 2030.
More Danish households, especially those with extra cash to spend, are eager to invest in tech-savvy homes. There's a growing interest in home automation as people become more conscious of their environmental impact. They want gadgets that cut down on energy use and shrink their carbon footprint.
The Danish government is also playing a big role in this shift. They offer subsidies and tax breaks for energy-efficient appliances, which often include smart home tech. This support makes it easier for developers to include these features in new builds.
As urban living spaces aim for sustainability, smart home technology is becoming a key player. Smart appliances are now part of green building certifications, making them a standard in developments focused on environmental sustainability.
Sources: NextMSC, Statista, Bio Conferences
11) Sustainable housing demand will grow as new environmental regulations affect property values
Copenhagen is becoming a hub for sustainable housing, especially in the Nordhavn District.
In this area, eco-conscious investors are flocking to projects like the six-story timber residential building by Nrep, which is setting new standards for eco-friendly construction. These developments are not just about being green; they attract buyers who are passionate about sustainable living.
The Danish government is pushing for more green buildings with initiatives like the Climate Adaptation Plan, which has a hefty investment of EUR 161 million. This plan is all about green district heating and eco-friendly building practices, making sustainable homes more attractive and valuable. Plus, with stricter CO2 emission limits for new buildings coming in 2025, the demand for sustainable homes is expected to rise as they align with national emission reduction goals.
People's preferences are changing too. More folks are interested in eco-friendly homes, especially seniors who are looking into community living. This shift is clear with the rise of co-housing communities that focus on sustainability. The media is also playing a role by highlighting successful projects in places like Aarhus, where a significant portion of construction materials is being reused.
These trends are not just about being trendy; they are reshaping the property market. New environmental regulations will encourage the development of sustainable housing, impacting property values. As more people look for homes that align with their values, the market for sustainable housing is set to grow.
Sources: Colliers, Copenhagen Climate Plan
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12) Short-term rental demand in Islands Brygge will rise because of its waterfront location and lively community
Islands Brygge is poised for a surge in short-term rental demand due to its stunning waterfront and lively community.
In Copenhagen, short-term rentals are hot, with properties being booked for an impressive 314 nights a year. This high occupancy rate shows a strong demand, and Islands Brygge is perfectly positioned to take advantage of this trend.
Tourism in Copenhagen is booming, with the airport welcoming 26.8 million passengers in 2023. Many of these visitors are drawn to the city's unique charm, and Islands Brygge, with its waterfront allure, is a top choice for those seeking the "cool Copenhagen" vibe and the cozy Danish "hygge" lifestyle.
Islands Brygge's vibrant community and picturesque location have caught the media's eye, further boosting its appeal. Social media is buzzing with posts about the area's lively events and stunning views, which naturally attract more visitors and increase demand for short-term rentals.
Events and festivals in Islands Brygge are not just fun; they also make the area more visible and attractive to tourists. This lively atmosphere is a magnet for short-term renters looking for a memorable stay.
With its prime location and dynamic community, Islands Brygge is set to become a hotspot for short-term rentals, offering visitors a taste of Copenhagen's best.
Sources: Airbtics, Schengen News, ETIAS
13) International buyers will target properties with high rental potential, especially in central areas
International buyers are increasingly focusing on properties with strong rental potential, especially in central locations like Copenhagen. This trend is largely driven by the rising demand for rental properties in the city, fueled by a growing population that includes international students and expatriates. As more people move to urban areas, the need for housing, particularly rentals, continues to climb.
Rental yields in central Copenhagen have been on the rise, thanks to the influx of international students and professionals. The University of Copenhagen, for example, admitted nearly 4,000 international students in 2023, significantly contributing to the demand for rental housing. Additionally, multinational companies establishing themselves in the city bring in professionals who require accommodation, further boosting rental yields.
The high occupancy rate for rental properties in Copenhagen's city center is another factor attracting international buyers. The shortage of available rental properties, combined with the growing demand from students and professionals, is driving up rental prices and yields. This scarcity makes central locations particularly appealing for investment.
Sources: Colliers, Heimstaden Market Update
14) City center property prices will rise moderately as urban living becomes more popular post-pandemic
In recent years, we've seen a noticeable shift in people's preferences towards urban living, especially after the pandemic. Surveys from 2023 showed that over 60% of Copenhagen's residents began valuing local urban offerings more than before. This change in preference has sparked a renewed interest in city-center living.
Real estate data from 2023 indicated a growing interest in city-center properties, with the average transaction price for owner-occupied flats in Copenhagen's Capital Region increasing by 1.2% year-over-year. Although this growth was slower compared to previous years, it still reflects a steady demand for urban properties.
Additionally, as remote work became less common, more people started returning to city centers. This trend was evident in the increased activity and interest in urban amenities and services, such as the Islandsbrygge promenade, which continued to attract residents despite social distancing challenges.
Sources: Global Property Guide, AAU Journals, RIBA Journal
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Denmark versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
15) Rental yields in suburbs will rise as more families look for bigger homes outside the city center
In recent years, we've seen a noticeable shift in how people choose their homes, especially with the rise of remote work. Many families are now looking for larger living spaces, which are more readily available in suburban areas. This trend has been particularly evident since 2023, as people seek a better work-life balance and more room to accommodate home offices.
Another factor driving families to the suburbs is the rising property prices in city centers like Copenhagen. In 2024, property prices in the city center increased significantly, making it less affordable for many families. As a result, more people are looking for affordable options in the suburbs, where they can get more space for their money.
Additionally, the suburbs have become more attractive due to improved infrastructure and public transport links. For instance, Copenhagen's new light-rail system, set to open soon, will make commuting from the suburbs to the city center much easier. This enhanced connectivity is a big draw for families who want the benefits of suburban living without sacrificing access to the city.
Sources: Global Property Guide, Oliver Wyman Forum, TenantCloud
16) Rental yields in central Copenhagen will fall as property prices rise faster than rents
In recent years, property prices in central Copenhagen have been on the rise. For example, the average cost of a 1-bedroom apartment in Copenhagen V reached €535,809, while a 2-bedroom apartment averaged €884,521. This increase in property prices suggests that buying a property is becoming more expensive, which could lead to higher expectations for rental income to justify such investments.
However, the growth in rental prices has not kept pace with the rising property prices. The average gross rental yield in Copenhagen was around 4.16% in 2023, showing only a slight decrease from 4.45% in early 2024. This indicates that rental income is not increasing at the same rate as property values, which could lead to a decline in rental yields.
Additionally, reports from real estate agencies highlight a competitive property market in Copenhagen. The number of housing starts has decreased, leading to a shortage of new construction and driving up demand for existing properties. This competitive environment might force landlords to lower rents to attract tenants, further impacting rental yields.
Sources: Global Property Guide, Colliers
17) Copenhagen’s property prices will keep rising due to high demand and limited supply
In recent years, Copenhagen has seen a consistent rise in residential property prices, and this trend is expected to continue. One of the main reasons is the limited supply of new housing developments. The city has been issuing fewer construction permits, which means there aren't enough new homes being built to meet the demand. This shortage is likely to persist into 2025, especially in central areas where people most want to live.
At the same time, Copenhagen's reputation as a cultural and economic hub continues to attract buyers from around the world. This international interest, combined with the city's strong economic performance and low unemployment rates, means more people have the financial stability to invest in property. As a result, demand is outpacing supply, pushing property values higher.
Another factor contributing to the limited supply is the scarcity of land available for new housing developments. This lack of available land, coupled with government policies that often prioritize preserving historical sites, further restricts new construction. With fewer new homes being built, the existing properties become more valuable, driving up prices.
Additionally, the strong rental market in Copenhagen, with high rental yields, attracts investors who are eager to purchase properties. This investor interest adds to the demand, further increasing property prices. The city's appeal as a desirable place to live, with its vibrant cultural scene and high quality of life, continues to draw expatriates and foreign investors, boosting demand even more.
Sources: Copenhagen Post, Global Property Guide
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.