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What will happen in Denmark’s real estate market? Will prices go up or down? Is Copenhagen 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 notaries, real estate agents, and clients who buy properties in Denmark, 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.
1) Denmark’s property prices will rise moderately because of low interest rates
Denmark's real estate market is buzzing thanks to consistently low interest rates.
In 2023, borrowing was a breeze with short-term mortgage rates at just 3.38% and long-term rates at 4.77%. This affordability has nudged more folks into buying homes, keeping the market lively.
While prices for detached and terraced houses dipped a bit, owner-occupied flats saw a slight uptick. The Capital Region was particularly hot, with a 20% jump in sales of detached and terraced houses compared to the previous year, showing strong demand in certain spots.
Looking ahead, real estate experts are optimistic. Nordea predicts a 3.3% average rise in home prices for 2024, with more growth expected in the following years. This is backed by a strong job market and potential rate cuts that could further boost buying.
The Danish central bank is playing its part by keeping interest rates low to fuel economic growth. In December 2024, they cut the benchmark rate to 2.60%, mirroring the European Central Bank's moves. This strategy is set to keep borrowing costs attractive, making real estate a tempting option.
Sources: Global Property Guide, Trading Economics, Nordea, Copenhagen Post
2) Rents in Denmark will rise as demand exceeds supply in major cities
The rising population in major Danish cities is driving up the demand for housing.
In 2023, urban areas in Denmark saw a steady influx of people, with urban population growth at 0.88592%. This means more people are looking for places to live in cities, pushing up the demand for rentals. The trend is fueled by international students and expatriates who choose Denmark for its educational and work opportunities, especially in cities where universities and jobs are concentrated.
Adding to the pressure, there's a limited supply of new housing developments in urban areas. Cities like Copenhagen face significant challenges in providing affordable housing, leading to high prices and long waits for social housing. The government has even described the situation as "critical," particularly for low-income families who struggle to find affordable options.
As property prices rise, homeownership becomes less accessible, which means more people are turning to rentals. This competition for limited rental properties is driving up rents. Young professionals, drawn to cities for better job prospects and amenities, prefer urban living, further increasing the demand for housing in these areas.
Media reports often highlight the housing crisis in cities like Copenhagen and Aarhus, where high prices and limited availability make it tough to find suitable accommodations. Real estate firms see the rental market as a lucrative opportunity, investing more in rental properties, which in turn drives up demand and prices.
Trends in urbanization and migration patterns continue, driven by economic opportunities and a preference for city life. This keeps the demand for housing high in urban centers, with rents expected to keep rising as demand outpaces supply.
Sources: Trading Economics, Copenhagen Post
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.
3) Demand for rentals in university cities will grow as more international students arrive
Denmark has seen a 43% surge in international students enrolling in bachelor programs in 2023.
This influx is particularly noticeable in university cities like Copenhagen and Aarhus, where housing shortages are becoming a real issue. Students, especially those from outside the EU, are finding it tough to secure affordable places to live due to high rent costs and limited access to guaranteed student housing.
Most international students prefer renting over buying, mainly because their stay in Denmark is temporary. This preference for renting is driving up demand for rental properties in these cities.
English-taught programs are becoming increasingly popular, which is attracting even more students to Denmark. This trend is boosting the need for student housing further.
With more students arriving each year, the rental market is feeling the pressure. The situation is particularly challenging for non-EU students, who face financial hurdles due to the high cost of living.
As a result, the demand for rental properties in university cities is expected to continue rising, making it a potentially lucrative market for property investors.
Sources: Erudera News, Courthouse News
4) Rental yields in Copenhagen will rise as more international students and professionals move in
Rental yields in Copenhagen are on the rise as the city becomes a magnet for international students and professionals.
The University of Copenhagen is a major draw, with 3,970 international students admitted in 2023 and plans to welcome even more. These students need places to live, which naturally boosts demand for rentals. It's not just students; foreign professionals are flocking to the city as well, thanks to the increasing number of work permits being issued.
Multinational companies are setting up shop in Copenhagen, bringing in professionals who need housing. This influx is pushing up demand for rental properties, which in turn is likely to drive up rental prices and yields. The city is buzzing with opportunities, making it an attractive spot for property investors.
Adding to the mix is a reported shortage of rental properties. This scarcity, combined with the growing demand from both students and professionals, is a recipe for higher rental prices. As prices climb, so do rental yields, creating a favorable market for those looking to invest in property.
For anyone considering buying property in Copenhagen, it's worth noting that the rental market is heating up. The city's appeal to international students and professionals is a key factor, and with the current shortage of rental properties, the trend is expected to continue.
Investors should keep an eye on this dynamic market, as rental yields are poised to increase with the ongoing demand. Copenhagen's vibrant atmosphere and growing international community make it a prime location for property investment.
Sources: Global Property Guide, Shiksha, Colliers
5) Property prices in Odense will fall as young people move to bigger cities for jobs
Odense is seeing a shift as younger people move to bigger cities like Copenhagen and Aarhus.
These young folks are chasing better job opportunities and higher salaries that are more common in these bustling urban areas. Larger cities boast a diverse economy with a mix of high-paying industries, making them attractive to ambitious professionals. Plus, younger generations love the cultural and social perks that big cities offer.
Over the past couple of years, property prices in Odense have been dropping. This is partly because many young people are leaving in search of better prospects. The population data shows a dip in the younger crowd in Odense, which matches the trend of moving to cities with a more exciting urban vibe.
Real estate reports highlight that Odense's property market is cooling as the younger demographic heads elsewhere. This migration is not just about jobs; it's also about the lifestyle and amenities that larger cities provide. The trend is clear: young people are drawn to the energy and opportunities of bigger cities.
As a result, Odense is experiencing a demographic shift, with fewer young professionals choosing to settle there. This change is impacting the local real estate market, making it a buyer's market for those interested in purchasing property in the area.
For potential buyers, this could mean more affordable housing options in Odense, as the demand from younger buyers decreases. It's an interesting time for the property market in this charming city.
Sources: Global Property Guide, Economy Finance
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6) Demand for smaller apartments in Denmark will rise as more people live alone
In Denmark, single-person households are now the most common type, with nearly 1.3 million people living alone.
This trend is especially noticeable among women, who make up 735,000 of these single-person households. The shift is driven by demographic changes like an aging population and young professionals choosing to live solo.
In cities like Copenhagen, urbanization is a big factor. More people are moving to urban areas, where smaller apartments are the norm. From 2010 to 2019, the number of singles living in multi-person households in Copenhagen rose by 67%.
Consumer preferences are also shifting. Many young graduates, aged 25-35, are opting for micro living. This is often due to financial constraints and the desire to stay in urban centers, even with high housing prices.
As a result, there's been a boom in the construction of smaller apartment units, especially in major cities like Copenhagen. Developers are responding to the demand for compact and efficient living spaces.
So, if you're considering buying property in Denmark, keep in mind that the demand for smaller apartments is on the rise, driven by these demographic and lifestyle changes.
7) Demand for homes with office spaces in Denmark will grow as remote work becomes more common
In Denmark, 34% of employees worked from home at least once in the last four weeks of 2023 and 2024, marking a clear shift in work culture.
With more people working remotely, there's been a noticeable uptick in the demand for home office furniture. Danes are particularly interested in ergonomic and sustainable designs, showing they're serious about setting up comfortable workspaces at home.
Real estate listings are now highlighting features like high-speed internet and tech infrastructure more prominently. These elements are becoming key selling points as buyers look for homes that can double as efficient workspaces.
In Denmark, the benefits of remote work, such as improved productivity and work-life balance, are well-documented and highly valued. This has increased the appeal of homes that support a remote work lifestyle.
Architectural trends are shifting towards flexible living spaces that cater to both work and leisure. Homes with dedicated home office areas are becoming more common, meeting the needs of the growing remote workforce.
Real estate agents have noticed a rise in buyer preferences for properties with home office spaces. This trend is supported by corporate policies that encourage remote work, further boosting demand for such homes.
Sources: NordLayer, OECD, Statista
8) Demand for smaller, accessible homes in Denmark will grow as the population ages
In Denmark, 20.6% of the population is currently 65 or older, and this is expected to rise to nearly 25% by 2050.
As people live longer, with life expectancy for men increasing from 77.1 years in 2010 to 79.5 years in 2020, and for women from 81.2 to 83.6 years, there's a growing need for homes that suit older adults. The Danish Government is on it, pushing initiatives like the Green Housing 2020 agreement to make social housing more accessible for seniors.
Senior co-housing communities are gaining traction, with over half of these communities now senior-focused. This trend shows a clear preference for smaller, more accessible homes that encourage community living. The real estate market is catching on, shifting towards smaller units and adding communal spaces that appeal to seniors who value a sense of community.
In Denmark, the aging population is reshaping the housing market. Developers are increasingly focusing on creating homes that are not just smaller but also more accessible, catering to the needs of older adults. This shift is not just about size but also about creating environments that foster social interaction and community support.
With the expected rise in the elderly population, the demand for smaller, more accessible housing units is set to increase. This is not just a trend but a necessity, as more people seek homes that accommodate their changing needs as they age. The market is responding by offering more options that prioritize accessibility and community living.
As the population ages, the need for housing that supports an aging lifestyle becomes more critical. This includes features like step-free access, wider doorways, and communal areas that encourage social interaction. The Danish housing market is evolving to meet these needs, ensuring that older adults have access to homes that support their lifestyle.
Sources: UNECE Report, DLA Piper, Trading Economics
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.
9) Sustainable home values in Denmark will rise due to new tax incentives for green building practices
Denmark is making big moves in sustainable building.
In 2023 and 2024, the Danish government poured EUR 161 million into the Climate Adaptation Plan, focusing on green district heating and eco-friendly building practices. This investment is a game-changer for the value of sustainable homes. With these funds, Denmark is not just talking about going green; it's putting money where its mouth is, making eco-friendly homes more appealing and valuable.
Starting in 2025, new buildings in Denmark will face stricter CO2 emission limits of 4 to 8 kg CO2/m²/year. This is part of a larger push to cut down emissions in the construction sector. As a result, the demand for sustainable homes is expected to rise. These homes are not only better for the environment but also offer lower utility costs, making them a smart buy for anyone looking to save money in the long run.
People are increasingly leaning towards eco-friendly homes. Market trends show a growing premium on sustainable properties, meaning buyers are willing to pay more for homes that are kind to the planet. This shift is backed by national construction regulations that now include green building standards, pushing more builders to adopt sustainable practices.
Homes that meet these new green standards are likely to see a boost in their market value. As more people prioritize sustainability, these properties become hot commodities. It's not just about being eco-conscious; it's also about making a smart investment.
Sources: State of Green, Construction21, Nordic Sustainable Construction
10) Denmark’s property prices will stabilize as the government works to prevent housing bubbles
The Danish government is actively working to stabilize property prices and prevent housing bubbles.
In 2024, they introduced a housing tax reform to make taxes more responsive to house price changes, aiming to reduce market fluctuations. This means if house prices go up or down, taxes will adjust accordingly, helping to keep things steady.
Meanwhile, Danmarks Nationalbank, the central bank, has been busy tweaking interest rates. By December 2024, they had cut rates four times, bringing the key rate down to 2.6%. This move makes mortgages cheaper, encouraging more people to buy homes and supporting the housing market.
On the supply side, while there was a dip in residential construction permits, the number of homes being built is showing signs of recovery. This suggests ongoing efforts to boost housing supply, which can help balance the market. It's a sign that builders are getting back to work, which is good news for potential buyers.
Foreign investment in Danish real estate, which had taken a hit in 2023, started to bounce back by the end of the year. This renewed interest indicates growing confidence in the market, with investors seeing Denmark as a stable place to put their money.
These efforts by the government and central bank are crucial in ensuring that property prices in Denmark remain stable, preventing the kind of housing bubbles that can lead to economic trouble. The combination of tax reforms, interest rate cuts, and increased housing supply is designed to keep the market healthy and accessible for buyers.
Sources: Global Property Guide, Denmark Investment Figures Q4 2023, Danmarks Nationalbank, Euro Weekly News
11) Older homes in Denmark will lose value due to stricter energy efficiency rules
Denmark is tightening its energy efficiency rules, which will affect the value of older homes.
The push for stricter regulations comes from the revised Energy Efficiency Directive and the Energy Performance of Buildings Directive. These aim to make all new buildings zero-emission by 2030 and existing ones by 2050. The Danish government is serious about cutting down on energy use and greenhouse gases, and these directives are a big part of that effort.
Denmark has set ambitious goals, like reducing greenhouse gas emissions by 40% from 1990 levels by 2020. The ultimate aim is to have an energy and transport system fully based on renewables by 2050. To make this happen, the government has introduced energy and carbon taxes, pushing for energy efficiency and a move away from fossil fuels.
Many older homes in Denmark, especially those built before 1930, have poor energy ratings. These homes are ripe for energy renovations, which can boost their value. Studies show that better energy efficiency ratings are linked to higher property values. For example, a 100 sqm house with an energy label D has a renovation value of about 11,400 DKK, while a C-labelled house is valued at around 5,700 DKK.
For potential buyers, this means that investing in energy-efficient upgrades could be a smart move. Not only can it increase the property's value, but it also aligns with Denmark's broader environmental goals. The government’s focus on energy efficiency is reshaping the real estate market, making energy ratings a key factor in property valuation.
As Denmark continues to implement these changes, the real estate landscape is evolving. Buyers and sellers alike need to be aware of how energy efficiency impacts property values. This shift is not just about compliance; it's about future-proofing investments in a country committed to sustainability.
Sources: Kefm.dk, Green Policy Platform, Copenhagen Economics
From this video, we realize that Denmark's increased focus on energy efficiency will likely affect housing markets, particularly older properties.
12) Interest in large, energy-inefficient homes will decline as Danish buyers focus on sustainability
Danish homebuyers are now more focused on sustainability when choosing properties.
One big reason for this shift is Denmark's new energy efficiency standards for buildings. By 2025, the country plans to cut emissions from new constructions, making energy-efficient homes more attractive to buyers. This means that homes with better insulation and modern heating systems are in high demand.
The Danish government is also helping out by offering financial perks for those who want to make their homes greener. These include green mortgages and tax breaks, which make it easier and cheaper for homeowners to invest in eco-friendly upgrades. So, more people are choosing homes that meet these green standards.
Another factor driving this trend is the rising cost of energy. As prices go up, the financial benefits of owning an energy-efficient home become more obvious. People are realizing that they can save money in the long run by investing in properties that use less energy.
There's also a growing awareness of climate change, which is pushing more Danish consumers to look for sustainable living options. This awareness, combined with economic factors, is leading to a higher demand for eco-friendly homes.
Large, energy-inefficient homes are losing their appeal as buyers prioritize sustainability. The focus is now on properties that offer both environmental benefits and cost savings, making sustainable homes the preferred choice in Denmark.
Sources: Construction21, EBRD Green Cities, Energy.europa.eu
13) Demand for homes with flexible spaces will grow as remote work becomes permanent
In Denmark, remote work has firmly established itself as a permanent part of life by 2024.
Since mid-2021, there's been a staggering 1100% increase in remote work adoption, leading many Danes to ditch jobs that demand in-person attendance. This shift has sparked a growing desire for home offices, as people crave spaces that are both functional and cozy for working from home.
The market for home office furniture and equipment is booming, with expectations of continued growth. This surge underscores the need for adaptable spaces that blend work and personal life. Recent real estate trends show a clear preference for properties with flexible living areas, as remote workers hunt for homes that cater to their work-from-home lifestyle.
Architectural designs are evolving too, focusing on multifunctional spaces that meet both personal and professional needs. This shift aligns with the rising interest in homes offering versatile living areas. Media outlets frequently highlight the perks of remote work, like better job satisfaction and productivity, making flexible living spaces even more appealing.
In Denmark, the real estate market is responding to these changes. Properties with flexible layouts are becoming hot commodities, as they offer the adaptability that remote workers crave. This trend is reshaping how homes are designed and marketed, with a focus on creating environments that support remote work.
As remote work continues to be a mainstay, the demand for homes with adaptable spaces is only expected to grow. This shift is not just a trend but a reflection of a new way of living and working, where flexibility and functionality are key.
Sources: Notta.ai, Statista, Fast Company
14) Demand for eco-friendly homes in Denmark will grow as people become more environmentally conscious
Eco-friendly homes are gaining traction in Denmark, driven by ambitious government targets to cut CO2 emissions.
In 2023 and 2024, Denmark set its sights on reducing emissions from new buildings, aiming for a significant drop by 2025. This push is a big reason why more eco-friendly homes are popping up. The Danish government is serious about this, and it's changing the way homes are built.
There's also a noticeable shift in the materials used for construction. Companies like Nordic Wood Industries are leading the charge with wood-based materials, which fit perfectly with Denmark's goal of slashing CO2 emissions by 70% by 2030. It's not just about hitting targets; people genuinely want homes that are kinder to the planet.
Government incentives have sweetened the deal. Between 2021 and 2024, a subsidy scheme encouraged energy-saving practices, making it more attractive for builders and buyers to go green. This support has been a game-changer, nudging more people towards eco-friendly options.
Regulations are tightening too. The Danish Building Regulations introduced stricter emission thresholds for new buildings in 2023, and by 2025, these rules will likely apply to smaller buildings as well. This means more sustainable homes on the horizon, as Denmark pushes for a greener energy system.
Investments in renewable energy solutions for homes are also on the rise, supporting this transition. As Denmark moves towards a green energy system, eco-friendly homes are becoming the norm.
Sources: Construction21, Nordic Wood Industries, European Commission, Concito
In this video, we can see that sustainable housing prototypes in Copenhagen demonstrate a growing trend toward eco-friendly living in Denmark.
15) Property values will rise in areas connected by Denmark's expanding high-speed rail network
The expansion of Denmark's high-speed rail network is set to boost property values in connected regions.
When the Copenhagen metro network was introduced, property values near new transport links surged. For instance, house prices close to metro stations jumped by about 40% of the construction cost. This shows that better transport connectivity often leads to higher property values.
Looking at the UK, the high-speed rail line between London and Birmingham caused property values along the route to rise. This example hints at a similar outcome for Denmark's rail expansion, where property appreciation could follow the new rail lines.
Surveys reveal that people, especially those with higher education, prefer living in areas with good public transport. This preference suggests that the rail network expansion will likely increase demand for properties in these well-connected regions.
In Denmark, the anticipation of improved rail connectivity is already stirring interest in the property market. As the network grows, areas with new stations are expected to become more desirable, attracting both buyers and investors.
Sources: CBS Research, European Commission
16) New Danish homes will commonly include smart home technology as a standard feature
In Denmark, smart home technology is becoming increasingly popular.
People are really getting into smart home gadgets, with the market expected to jump from $334.9 million in 2023 to a whopping $1684.4 million by 2030. This means an impressive annual growth rate of 26.0% from 2024 to 2030. It's clear that Danes are keen on making their homes smarter and more efficient.
Why the buzz? Well, more than 70% of home buyers in Denmark are looking for smart homes. They love the idea of energy-efficient and automated living, which saves time and boosts security. Plus, the government is sweetening the deal with incentives for energy efficiency, making smart homes even more appealing.
Real estate developers and tech companies are teaming up to make this happen. Take the Sønderborg project, for example. It's a great case of how smart tech can be woven into social housing, cutting energy use and enhancing residents' lives. These partnerships are proving that smart homes aren't just a trend—they're the future.
The Danish government is also on board, pushing to make Denmark a digital leader. Their Digital Growth Strategy is all about helping businesses embrace new tech. By focusing on digital education, like teaching computational thinking in schools, they're setting the stage for even more smart home adoption down the line.
With all these factors in play, it's no wonder that smart home technology is set to become a standard feature in new Danish homes. The combination of consumer demand, government support, and successful tech partnerships is creating a perfect storm for growth.
Sources: NextMSC, Statista, Housing Europe, Invest in Denmark, Exploding Topics
17) Property values in bike-friendly Danish neighborhoods will rise due to new cycling infrastructure
New cycling infrastructure in Danish cities is boosting property values in bike-friendly neighborhoods.
In Copenhagen, the city’s investment in cycling infrastructure has made it a more attractive place to live. The addition of new bike lanes and bridges has not only improved the city's liveability but also led to significant property value appreciation. For example, the socio-economic return on investment in bicycle bridges is impressive, with a nine percent return over 20 years, which outperforms other infrastructure investments.
People are eager to live in areas with good cycling facilities. In fact, 62% of Copenhagen residents choose to cycle to work or school, showing a strong preference for sustainable and healthy living options. This trend is pushing the real estate market to grow in these bike-friendly neighborhoods.
It's not just Copenhagen seeing these benefits. In Greater Manchester, properties near cycling amenities have experienced a 2.85% increase in value. This pattern highlights the strong link between cycling infrastructure and property value growth.
Buyers are willing to pay more for homes in areas with excellent cycling facilities. This demand is driven by the desire for a healthier lifestyle and the convenience of cycling as a mode of transport. As a result, neighborhoods with new cycling infrastructure are becoming more desirable.
Investing in cycling infrastructure is proving to be a smart move for cities looking to enhance their appeal and boost property values. The trend is clear: bike-friendly areas are on the rise, and they are attracting both residents and investors.
Sources: Phys.org, State of Green, State of Green
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.