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 is happening in Copenhagen’s real estate market? Are prices on the rise or decline? Is the city still a magnet for international investors? How are Denmark’s government policies shaping real estate taxes and regulations in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across the city and beyond. Maybe you’re curious about the same things.
We know this because we stay closely connected with local experts and people like you, exploring the Copenhagen real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
How this content was created 🔎📝
1) Rents in central Copenhagen will keep rising due to strong demand and limited supply
Rents in central Copenhagen are climbing and show no signs of stopping.
In 2023, rental prices for new homes in Copenhagen jumped by over 10%. Even though the increase slowed a bit in 2024 with a 6.7% rise, the upward trend is still going strong. This is largely because the city is bustling with people. Copenhagen's population hit about 1,391,200 in 2024, growing at a steady 0.74% each year. More people are moving to the city, especially in the Øresund Region, which keeps the demand for housing high.
But here's the catch: there's not enough new housing being built in central Copenhagen. High construction costs and rising interest rates are making it tough to start new projects. This means fewer new homes are available, and the ones that are there are quickly snapped up. The existing rental properties are almost always full, so finding a place can be quite competitive.
With such a limited supply and high demand, it's no wonder that rents are going up. People are eager to live in the heart of the city, but there just aren't enough places to go around. This situation is likely to keep pushing rents higher, as more people compete for fewer available homes.
So, if you're thinking about moving to Copenhagen, be prepared for a competitive rental market. The city's charm and opportunities are drawing people in, but the housing market is tight. Keep an eye on the trends and be ready to act fast if you find a place you like.
Sources: Global Property Guide, World Population Review, Colliers
2) New regulations will boost affordable housing development in Copenhagen
In recent years, new regulations have been set in place to encourage the development of more affordable housing in Copenhagen. One of the key factors is the increased government funding for affordable housing projects. From 2022 to 2025, the Danish government allocated DKK 30 billion from the National Building Fund to renovate social and affordable housing. This funding is crucial as it helps initiate renovations and maintain affordable rents, making housing more accessible to a broader population.
Additionally, recent policy changes have aimed at reducing construction costs, which is another significant step towards affordable housing. The renovation scheme not only creates jobs but also reduces energy consumption by 30-40%, which helps keep rents affordable. Public-private partnerships, such as those facilitated by the Landsbyggefonden, provide co-financing for social housing projects, further reducing construction costs and encouraging development.
Moreover, the allocation of land specifically for affordable housing development plays a vital role. The Danish government has agreed to allocate DKK 2.5 billion in land purchase loans until 2031, allowing for the conversion of commercial properties into social housing. This ensures that new social housing can be established in central and attractive locations, making it more appealing for developers to invest in affordable housing projects.
Sources: Housing Europe, FEANTSA
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) Foreign buyers will target central locations for their investment potential and lifestyle appeal
Foreign buyers are increasingly drawn to central locations in Copenhagen due to their strong investment potential and lifestyle appeal. In the past, property prices in central Copenhagen were significantly higher than in suburban areas, indicating a robust market. For example, a one-bedroom apartment in the city center cost around 12,700.84 DKK, compared to 9,392.39 DKK outside the center.
Additionally, the demand for short-term rentals in central Copenhagen has been high, with properties being booked for an average of 314 nights a year. This high occupancy rate, coupled with an average daily rate of €146, highlights the stable and lucrative market for short-term rentals in these areas. The vibrant urban lifestyle, with trendy cafes and cultural attractions, further enhances the appeal of central locations for foreign buyers.
Moreover, the scarcity of available properties in central Copenhagen has driven up competition, leading to higher property prices and increased rental yields. This scarcity, combined with the appreciation rates of properties in central areas, makes them a more attractive investment opportunity. The ongoing infrastructure and development projects in central Copenhagen also contribute to its livability and appeal, drawing more foreign buyers.
Sources: Global Property Guide, World's Best Cities, Airbtics, Numbeo
4) Rental yields will rise in newly developed areas as they gain desirability
Rental yields in Copenhagen's new areas surged to 4.16% by the end of 2023, driven by high demand and limited supply.
With more international students and professionals flocking to the city, newly developed neighborhoods became hot spots. The University of Copenhagen and multinational companies attracted a diverse crowd, making these areas more appealing.
Urban growth in Copenhagen meant more people were looking for homes, especially international students and expats. The demand for rentals outpaced the supply of new housing, pushing rental yields higher.
People loved the modern amenities in these new neighborhoods, which made them even more desirable. Consumer surveys showed a clear preference for these areas, boosting demand and rental yields.
Media coverage also played a part, shining a spotlight on the appeal of these developments. This attention only added to their allure, making them prime real estate.
Sources: Global Property Guide, GlobeSt.com
5) A weaker Danish krone will draw more foreign investors seeking favorable exchange rates
The weakening of the Danish krone can make Denmark more appealing to foreign investors because it offers them a chance to get more value for their money when exchanging their currency. When the krone is weaker, foreign investors can buy more Danish assets, like real estate or businesses, for the same amount of their own currency.
In the past, such as in 2023 and 2024, Denmark's economy showed strong growth, with GDP expanding by 3% in 2024. This robust economic performance, along with favorable business conditions, makes Denmark an attractive place for investors looking to enter the Nordic and European markets. Additionally, the Danish krone has been fluctuating around the ERM II central rate, indicating potential for depreciation against major currencies.
Real estate prices in Copenhagen are relatively lower compared to other major European cities, which could attract foreign investors looking for affordable options. For example, the median price per square meter in Copenhagen is €7,198, while in cities like Zurich, London, and Paris, prices are significantly higher. This price difference, combined with a weaker krone, makes investing in Danish real estate more appealing to foreign buyers.
Sources: IMF, Global Property Guide, Invest in Denmark
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) Nordhavn will attract more interest for its sustainable urban development and waterfront lifestyle
Nordhavn is Denmark's most expensive zip code, with an average price per square meter of DKK 58,000.
People are flocking to Nordhavn for its sustainable urban development and waterfront living. The area has seen a surge in investment and redevelopment, making it a hot spot for both residents and investors. This demand is fueled by Nordhavn's unique offerings, which are hard to find elsewhere.
Nordhavn is all about sustainable living. It follows the 5-Minute City concept, meaning everything you need is just a short walk or bike ride away. This setup not only makes life easier but also aligns with modern urban planning trends. The district is designed with pedestrian- and bike-friendly infrastructure, green spaces, and energy-efficient buildings, making it a model for future cities.
The Copenhagen City and Port Development Corporation, which is publicly owned, is behind Nordhavn's transformation. This setup allows for long-term planning and investment, ensuring the area develops in a sustainable way. When fully developed, Nordhavn will accommodate 40,000 people, including both residents and workers.
Eco-friendly transportation is a big deal here. The district boasts robust pedestrian and bike-friendly streets and efficient public transport, making it a magnet for environmentally conscious folks. This focus on green transport options adds to Nordhavn's appeal.
Sources: Danish Architecture Center, Global Property Guide, Creative Denmark, Housing Agency Ireland
7) Property values will rise in areas newly connected by the metro expansion
Property values near new metro lines in Copenhagen have historically surged when the network expands.
When the metro first arrived, homes close to stations saw prices jump by about 40% of the construction cost. This trend suggests that new metro expansions could similarly boost property values in areas that gain new connections.
Real estate experts, like those from PwC's Emerging Trends in Real Estate, emphasize that buying property near a metro station is a savvy investment. The improved accessibility from these expansions often makes such areas more appealing to both buyers and investors.
Moreover, Copenhagen is seeing an influx of international students and professionals, which is driving up demand for rental properties. This demand is a clear sign that property values in newly connected areas are likely to rise, as people look for convenient places to live.
With more people seeking easy access to transport, living near a metro station becomes increasingly desirable. This desirability can lead to higher property values as the metro network grows.
As the city continues to expand its metro network, newly connected areas are expected to see a rise in property values, making them attractive for future investments.
Sources: PwC
8) Better cycling infrastructure will attract eco-conscious buyers to neighborhoods
Improved cycling infrastructure can make neighborhoods more appealing to eco-conscious buyers.
In places like Copenhagen, property values have risen in areas with better cycling paths. For instance, the city's bicycle bridges offer a 9% socio-economic return, outpacing other projects like the Metro City. This makes such areas attractive for those seeking a solid investment.
There's a noticeable shift towards eco-friendly living, with many buyers preferring neighborhoods that support sustainable transport. Cities like Copenhagen, aiming to be the world's top cycling city by 2025, align perfectly with these preferences, drawing in eco-conscious buyers.
Cycling is not just a trend but a primary mode of transport in Copenhagen, making up 36% of all trips. The city plans to boost this to 75% by 2025, showing a clear demand for neighborhoods with robust cycling infrastructure.
For potential buyers, the appeal lies in the lifestyle and investment opportunities. Enhanced cycling paths not only promise a greener way of living but also a chance to be part of a forward-thinking community.
As more cities follow Copenhagen's lead, the demand for homes in areas with strong cycling infrastructure is likely to grow, making them a smart choice for eco-conscious buyers.
Sources: Metropolis, C40, State of Green
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 sustainable and eco-friendly developments will attract more interest from foreign buyers
Foreign buyers are increasingly drawn to Copenhagen because of its commitment to sustainability and eco-friendly living.
In 2021, Copenhagen was named the world's most sustainable city by TimeOut, a testament to its dedication to green initiatives. This recognition makes it a prime spot for those who value sustainable living.
The Danish government is pushing hard to be fossil fuel-free by 2050, creating a supportive backdrop for eco-friendly projects. This ambition is a magnet for foreign investors eyeing long-term green investments.
Copenhagen shines in green urban planning, with strict building codes and future-proof designs that ensure high sustainability standards. The city is a showcase of eco-certified buildings, like the ultra-sustainable UN City.
These factors make Copenhagen a leader in sustainable architecture, drawing in those who want to be part of a forward-thinking community. The city's commitment to eco-friendly development is evident in its growing number of green buildings.
Foreign buyers are not just investing in property; they're investing in a lifestyle that aligns with their values. Copenhagen's blend of innovation and sustainability is hard to resist for those looking to make a meaningful impact.
Sources: Wonderful Copenhagen, Gorrissen Federspiel
10) Urbanization trends will drive more people to seek properties in central locations
Urbanization is driving more people to buy homes in city centers, especially in places like Copenhagen.
In recent years, Copenhagen's population has been on the rise, and it's expected to keep growing through 2025. This growth is pushing more people to look for homes in the heart of the city.
There's a big demand for housing in these central areas. Copenhagen needs thousands of new homes each year to meet this demand, which is why property prices are higher in the city center compared to the suburbs.
Young people are a big part of this trend. Many are moving to cities for school and deciding to stay, which means more home buyers are in the 25-39 age group. This shift is making city living more popular.
Investments in urban infrastructure, like the Øresund Bridge, have made commuting easier. This has increased the attractiveness of living in the city, as getting around is now more convenient.
Sources: Macrotrends, Copenhagen Economics, World Population Review
11) Luxury property prices will rise more slowly than mid-range properties due to market saturation
In recent years, the luxury property market in Copenhagen has experienced a significant increase in inventory levels. This means there are more luxury homes available for sale than before. A report from 2024 by BNP Paribas Real Estate highlighted that while the pause in interest rate hikes in late 2023 was initially seen as a positive sign for investors, it also resulted in a higher supply of luxury properties. This increased supply can lead to slower price growth because there are more homes than buyers.
Additionally, luxury homes are taking longer to sell compared to mid-range properties. This trend suggests that the market is saturated, meaning there are too many luxury homes and not enough buyers. When homes take longer to sell, it often indicates that buyers have more options and are being more selective, which can slow down price increases.
Moreover, there is a higher percentage of unsold luxury units in Copenhagen. This surplus of unsold properties shows that the luxury market is not as active as it once was. When there are many unsold homes, it can put downward pressure on prices, leading to slower growth.
Sources: Global Property Guide, BNP Paribas Real Estate
Make a profitable investment in Copenhagen
Better information leads to better decisions. Save time and money. Download our guide.
12) Rental yields in central Copenhagen will stabilize as rental prices align with property values
In recent years, rental yields in central Copenhagen have shown signs of stabilizing as rental prices begin to catch up with property values. This trend is largely driven by the rising rental prices in the area, which have been increasing due to high demand and limited supply. For instance, in 2024, rents for new residential properties in Copenhagen were predicted to rise by more than 10%.
Historically, there has been a narrowing gap between rental prices and property values, indicating a trend towards stabilization. The initial asking price and realized price of owner-occupied homes in Copenhagen have been trending closer over the years. This suggests that as rental prices increase, they are beginning to align more closely with the underlying property values.
Additionally, the demand for rental properties in Copenhagen has been bolstered by the city's appeal to international students and professionals. This influx of new residents has led to higher demand for rental accommodations, further driving up rental prices and yields. As these rental prices continue to rise, they are expected to stabilize in relation to property values, leading to more consistent rental yields.
Sources: Global Property Guide, Colliers, Trading Economics
13) Copenhagen’s property prices will rise moderately due to limited supply and high demand
Copenhagen's property prices are on the rise, and this trend is expected to continue.
One of the main reasons for this increase is the limited availability of land for new developments. The city's urban development plan, kp19, aims to promote sustainable living but also highlights the challenge of creating affordable housing in a city with scarce land. This scarcity makes it tough to meet the growing housing demand.
Adding to the pressure is Copenhagen's growing population. The city attracts a steady stream of international students and expatriates, drawn by its educational and work opportunities. This influx of people further fuels the demand for housing.
Copenhagen's economic growth and job opportunities make it a hotspot for property investors. With multinational companies setting up shop, professionals flock to the city, needing places to live. This vibrant atmosphere and expanding international community keep the housing demand high.
Experts predict that house prices will start to rise again in 2025, with an average annual increase of 6% by 2030. This forecast indicates a strong expectation of price growth in the coming years.
Overall, the combination of limited land, a growing population, and economic opportunities creates a perfect storm for rising property prices in Copenhagen.
Sources: Global Property Guide, UBM Development, Copenhagen Post
14) Rental yields in outer districts will rise slightly as more people look for affordable housing options
In recent years, we've seen a noticeable rise in rental prices in central Copenhagen. By 2024, the average price per square meter for properties in the city had reached DKK 55,000, marking a 4.6% increase from the previous year. This consistent growth in central areas has been pushing residents to look for more affordable housing options in the outer districts.
The demand for housing in Copenhagen remains strong, but the supply is limited, especially in central areas. This trend has led to higher occupancy rates in outer districts as people seek more affordable options. Additionally, improved public transportation in Copenhagen has made these outer districts more accessible, increasing their appeal to residents.
Moreover, demographic shifts, such as younger populations moving to more affordable areas, have contributed to the growth in outer districts. This shift is part of a broader trend where people seek more affordable housing options, which can lead to higher occupancy rates and, consequently, higher rental yields in these areas.
Sources: Global Property Guide, Colliers
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) Demand for accessible, senior-friendly housing will rise due to an aging population
As we look back at the past few years, it's clear that the aging population in Denmark, particularly in Copenhagen, has been on the rise. In 2023, people aged 65 and above made up 20.6% of the total population. This trend is expected to continue, with projections showing a significant increase in the elderly population by 2100.
With people living longer, thanks to rising life expectancy rates, there's a growing need for housing that caters to the needs of older adults. This means homes that are not only safe and comfortable but also accessible, allowing seniors to move around easily and live independently for as long as possible.
Government reports and urban planning documents have been emphasizing the importance of creating age-friendly infrastructure. These documents often highlight the need for housing that supports the well-being of elderly residents, ensuring they have access to the facilities and services they need.
Real estate market analyses have pointed out a shortage of senior-friendly housing options in Copenhagen. This shortage is partly due to the rapid aging of the population and the lack of new developments that cater specifically to senior needs.
Sources: Eurostat, Trading Economics, Statista
16) Property prices in Nørrebro will rise as it becomes a trendy spot for young professionals
Nørrebro is quickly becoming the go-to spot for young professionals.
One big reason for this shift is the boost in local infrastructure and amenities. Over the last few years, the area has seen a wave of eco-friendly projects, new schools, and parks. These changes are not just making Nørrebro more family-friendly but are also pushing property prices up.
The neighborhood's vibrant cultural scene is another draw. With a growing number of cafes, restaurants, and cultural venues, Nørrebro offers a lively atmosphere. This buzz is attracting young professionals who crave a dynamic lifestyle. Media outlets like Culture Trip have even spotlighted Nørrebro as one of Copenhagen's coolest neighborhoods, known for its bars and nightlife.
Improved public transportation is also making Nørrebro more accessible. New transport links and redevelopment projects are enhancing the area's appeal. This accessibility is a key factor in the expected rise in property prices.
Demographic data shows an influx of young professionals, which is driving demand for homes. This demand is a major contributor to the increasing property prices in the area.
With all these factors combined, Nørrebro is set to become even more desirable, especially for those looking to invest in property.
Sources: Culture Trip, Global Property Guide
17) Vesterbro will see rising property demand as it transforms into a cultural hub with new art galleries and cafes
Vesterbro is turning into a cultural hotspot, sparking a surge in property demand.
In recent years, the neighborhood has seen a boom in art galleries and cafes, making it a magnet for both locals and tourists. This vibrant scene is attracting people who love artistic and lively environments, making Vesterbro an exciting place to call home.
Property prices are climbing, reflecting Vesterbro's growing charm. Imagine a cozy 2-bedroom apartment that was priced at 5,500,000 DKK in 2024; it could see a price increase of 3% to 6% by 2025. This is largely because international buyers are drawn to the area, and luxury housing projects are popping up.
The neighborhood's bustling vibe is clear from the high foot traffic on streets like Nørrebrogade, with an average of 794 pedestrians per hour. This lively atmosphere is a big draw for both residents and businesses, pushing property demand even higher.
Media outlets are also shining a spotlight on Vesterbro, calling it a must-visit cultural destination. This kind of attention only adds to its allure, making it even more appealing to potential buyers.
As more people seek out culturally rich neighborhoods, Vesterbro's property market is likely to keep climbing. The area's transformation into a cultural hub is a key factor driving this trend.
Sources: Artsy, City of Copenhagen, Roadbook
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.