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What do the latest numbers reveal about Denmark’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Denmark, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Foreign investors in Denmark’s residential real estate market are expected to grow by 10% by 2025
By 2025, the number of foreign investors in the Danish residential real estate market is expected to increase by 10%.
Falling interest rates are making real estate investments more attractive, drawing in more international investors. In the past, high interest rates and construction costs kept some investors away, but now these financial barriers are easing.
Denmark's real estate market is buzzing with activity, thanks to improved economic conditions. This has encouraged both buyers and sellers to engage more, creating a favorable environment for investment. Foreign investors are keen to jump on these opportunities.
Historically, cross-border investments have fluctuated with global economic conditions. Although there was a decline in recent years, a resurgence is anticipated, which will benefit the Danish market.
Foreign investors are particularly interested in Denmark due to its stable economy and transparent market practices. These factors make it a safe and appealing choice for international buyers looking to diversify their portfolios.
Sources: Nordicals, Nordicals Foresight, Colliers Denmark
2) Odense’s residential rental yield is expected to increase to 4.5% by 2025
In Odense, residential properties are increasingly seen as financial assets, reflecting a broader trend in housing.
This shift, known as the financialization of housing, means that investors are now more focused on maximizing profits through rental income and property appreciation. As a result, rental yields are expected to rise.
Across Denmark, rents are climbing due to growing demand and limited supply. This trend is particularly evident in cities like Odense, where landlords are keen to capitalize on these higher rents.
Odense's economic landscape is also a key factor. With Denmark's low unemployment rate, the rental market remains stable and is poised for growth, supporting the potential increase in rental yields.
Urban planning in Odense is adapting to future needs, with local governments preparing for population growth and economic changes. These efforts can influence rental yields as the city evolves.
Sources: Financialization in Cities, Youth Policies Document, Urban Strategic Planning
We have made this infographic to give you a quick and clear snapshot of the property market in Denmark. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Co-living spaces in Denmark are expected to double by 2025, reflecting changing lifestyle preferences
In recent years, there's been a noticeable shift in urban living preferences.
Back in 2023 and 2024, more people started opting for flexible and communal living arrangements. This shift has significantly contributed to the rise of co-living spaces, which blend private and shared areas. These spaces are particularly appealing to young professionals and digital nomads who crave community but don't want to give up personal space.
Denmark, like many European countries, has embraced this trend. The demand for co-living spaces is driven by the need for affordable housing solutions in cities where traditional options are pricey and limited. As a result, the number of co-living spaces in Denmark is anticipated to double by 2025, reflecting these evolving lifestyle choices.
Co-living offers a unique lifestyle that combines affordability with a sense of community, making it an attractive option for those who value both social interaction and personal space. This trend is not just about housing; it's about changing how people connect and live together.
In Denmark, the popularity of co-living is a response to urban challenges, providing a solution that meets the needs of modern city dwellers. The growth of these spaces is a testament to the changing lifestyle preferences of the population.
As more people seek out these communal living arrangements, the landscape of urban housing continues to evolve, offering new opportunities for those looking to invest in property. The rise of co-living spaces is a clear indicator of how lifestyle trends are shaping the future of housing in Denmark.
Sources: PERE News
4) By 2025, 90% of Danish homes are expected to have energy performance certificates
Denmark is making big strides in energy efficiency for homes.
Back in 2007, Denmark took a bold step by introducing a mandatory labelling scheme, requiring all buildings to have an Energy Performance Certificate (EPC) before they could be sold or rented. This initiative, overseen by the Danish Energy Authority, or Energistyrelsen, was a game-changer in the real estate market.
Fast forward to 2023 and 2024, and this scheme has become a key player in Denmark's energy efficiency efforts. The Danish Energy Strategy 2050, which aims for independence from fossil fuels by 2050, has put a spotlight on the building sector. This sector is crucial because it uses a lot of energy, especially for heating, making it a prime target for energy-saving measures.
The strategy includes tough energy performance requirements, pushing for zero energy needs in buildings. This means that new buildings are expected to be so efficient that they don't need any external energy sources, a significant leap towards sustainability.
With these efforts, it's no wonder that the percentage of Danish residential properties with energy performance certificates has been on the rise. The goal of reaching 90% by 2025 fits perfectly with the ongoing initiatives to boost energy efficiency in the building sector.
The mandatory labelling scheme and the ambitious goals of the Energy Strategy 2050 have set a clear path towards achieving this target. By 2025, the percentage of Danish residential properties with energy performance certificates is expected to reach 90%.
Sources: GBPN Library
5) Copenhagen’s residential property prices are expected to increase by at least 3% in 2025
In 2025, residential property prices in Copenhagen are set to rise by at least 3%.
The Danish government's economic report, Regeringens Økonomisk Redegørelse, predicts a 3.3% increase in house prices in Copenhagen. This aligns with the city's ongoing trend of rising property values.
Nordea Kredit, a major Danish financial institution, forecasts a 3.9% rise in the average price of detached houses, including those in Copenhagen. This supports the expectation of increasing property prices in the area.
Bolius.dk, a Danish real estate analysis center, notes that most forecasts agree on the continued rise of property prices in Copenhagen for both 2025 and 2026. They specifically mention a 3.9% increase in the average price of a typical apartment in Copenhagen in 2025.
These predictions are based on various factors, including economic growth and demand for housing. The city's appeal and infrastructure improvements contribute to the steady increase in property values.
For potential buyers, this means considering the timing of their purchase, as property values are expected to climb steadily. Understanding these trends can help in making informed decisions.
Sources: Bofinans.dk, Bolius.dk
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6) In 2024, about 12,000 residential units were sold in Denmark, marking a 15% rise from 2023
In 2024, the Danish real estate market experienced a significant boost, with around 12,000 residential units sold nationwide, marking a 15% increase compared to 2023.
This surge in sales was largely driven by improved economic conditions in Denmark. With a stronger economy, consumer confidence and spending power increased, encouraging more people to invest in property. This economic upswing made buying a home more appealing and feasible for many.
Urbanization also played a crucial role. As more people moved to cities seeking better job opportunities and lifestyle amenities, the demand for residential units in urban areas rose. This shift in population dynamics contributed significantly to the increase in property sales.
Government policies further supported this growth. Initiatives aimed at making housing more affordable, such as incentives for first-time homebuyers and reduced interest rates, made it easier for people to purchase homes. These measures were instrumental in boosting the real estate market.
For those considering buying property in Denmark, these trends indicate a vibrant and growing market. The combination of economic growth, urbanization, and supportive government policies creates a favorable environment for property investment.
Sources: Ejendomssalg - Danmarks Statistik, Danmarks fremtidige boligmarked - Newsec, Nye tal: Så meget steg boligpriserne i første halvår af 2024 - Via Ritzau, Denmark's Residential Property Market Analysis 2024 - Global Property Guide
7) Denmark's residential real estate transactions totaled DKK 120 billion in 2024, up from DKK 100 billion in 2023
The total value of residential real estate transactions in Denmark reached DKK 120 billion in 2024, up from DKK 100 billion in 2023.
This jump is largely due to a noticeable rise in property prices. For example, by June 2024, the average sales price for villas and row houses hit 17,408 DKK per square meter, marking a 3.5% increase since December 2023. This steady climb in prices has been a key factor in boosting the total transaction value.
Another reason for this growth is the significant boost in the number of residential property transactions. In the second quarter of 2024, home and apartment sales jumped by 11.5% compared to the same period in 2023, with 15,422 properties sold. This surge in sales volume has been crucial in driving up the market's overall value.
Moreover, the average transaction price for a typical 140-square-meter house in the second quarter of 2024 was 2.3 million DKK, reflecting a 4.7% increase from the same period in 2023. This trend of rising property prices is a clear contributor to the increased total value of transactions.
These changes are not just numbers; they reflect a dynamic shift in the Danish real estate market. The increased demand and limited supply have pushed prices higher, making it a competitive market for buyers.
For potential buyers, understanding these trends is crucial. The current market conditions suggest a strong investment opportunity, but also a need for careful consideration of timing and location.
Sources: Ritzau, Finans Danmark, Bolius
8) Aalborg residential property prices are expected to increase by 2-4% annually through 2025
Aalborg is buzzing with economic growth, attracting professionals and businesses from all over.
This influx has led to a high demand for housing, naturally pushing property prices up. To keep up, Aalborg is seeing a lot of boligudvikling, or housing development. This includes new builds and renovations, aiming to boost the supply of rental properties and offer more diverse housing options. These developments not only help stabilize prices but also show a healthy, growing market.
Across Denmark, the residential property market is showing signs of recovery. In some regions, prices are creeping up. For example, in the Capital Region, prices for owner-occupied flats rose by 1.2% year-over-year in Q3 2023, even though the pace has slowed compared to previous years. This hints at a general upward trend in property prices.
In Aalborg, residential property prices are projected to grow by 2-4% annually through 2025. This growth is fueled by the city's economic expansion and the ongoing housing developments. The market's dynamism is a promising sign for potential buyers.
For those considering buying property in Aalborg, the city's economic vitality and housing projects make it an attractive option. The steady increase in property values suggests a solid investment opportunity. Aalborg's blend of new developments and economic growth creates a exciting real estate market.
Sources: Propstep, Global Property Guide
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.
9) Mortgage approvals in Denmark increased by 10% in 2024 compared to 2023
The number of mortgage approvals in Denmark rose by 10% in 2024 compared to 2023.
This uptick was largely due to a shift in interest rates. In 2024, the National Bank of Denmark adjusted rates, leading to a drop in the third quarter. This made borrowing cheaper and more appealing for those looking to buy a home.
By October 2024, the average interest rate on mortgages had decreased to 4.65%, the lowest in two years. This drop likely spurred more people to apply for mortgages, as they could lock in loans at better rates. Lower rates generally translate to more affordable monthly payments, making it easier for people to consider homeownership.
There was also a shift in the types of loans people preferred. Many borrowers leaned towards F5 loans, which typically offer lower average interest rates than other variable-rate options. This trend indicates that people were keen on securing the best possible terms in the current market.
Sources: Danmarks Nationalbank, Mybanker
10) Rental agreements for single-family homes rose by 8% in 2024
In 2024, the number of rental agreements signed for single-family homes increased by 8%.
This uptick is tied to several dynamics in the Danish real estate market. For starters, the availability of properties for sale, including houses, apartments, and summer houses, increased. This broader selection made it easier for potential renters to find homes that suited their needs, leading to more rental agreements. Nykredit pointed out this trend, noting the increased number of properties on the market.
Moreover, the average rent for single-family homes rose by 3.1% in 2024 compared to 2023, according to Huslejestatistik 2024. This rise in rent prices might have motivated more property owners to rent out their homes, thus boosting the number of rental agreements.
Services like Housing Denmark also played a significant role. They offered management agreements and helped property owners find tenants, which likely facilitated the increase in rental agreements. Their involvement made the process smoother for both landlords and tenants.
With more properties available and rising rents, property owners saw an opportunity to capitalize on the rental market. This environment encouraged them to list their homes for rent, contributing to the overall increase in rental agreements.
Sources: Huslejestatistik 2024, Housing Denmark, Nykredit
11) In Copenhagen, the average price per square meter for properties hit DKK 55,000 in 2024
The average price per square meter for properties in Copenhagen has reached DKK 55,000 in 2024.
According to Boliga.dk, property prices have been on a steady rise, with a 4.6% increase from the previous year by the second quarter of 2024. This consistent growth is a major factor driving prices up.
Nykredit's report from September 2024 shows that the average price for an owner-occupied flat in Copenhagen hit a record DKK 54,965 per square meter. This surpassed the previous high from May 2022, showing a strong upward trend despite seasonal changes.
The demand for housing in Copenhagen is strong, but the supply is limited, which is pushing prices higher. The market's resilience is evident as it withstands economic challenges like high interest rates and inflation, especially in the capital region.
Owner-occupied flats in Copenhagen have maintained high growth rates, contributing to the significant price increases. This resilience and demand are key reasons why the average price has reached DKK 55,000 per square meter in 2024.
Sources: Boliga.dk, Nykredit, Boligsiden
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12) Residential property prices in Denmark’s suburbs rose by 4.2% in 2024
In 2024, residential property prices in Denmark’s suburbs rose by 4.2%.
This increase is part of a broader trend of rising housing prices across various regions. In the suburbs of Copenhagen, particularly in Nordsjælland, the price increase was slightly different. According to Videncentret Bolius, the average price increase there was 4.1% in the third quarter of 2024. This small difference shows how data can vary and how the housing market is always changing.
Several factors are driving these price hikes. One major reason is the growing demand for suburban living. People are increasingly looking for homes outside the city, which is pushing prices up. Additionally, economic conditions and regional development are playing significant roles in shaping these trends.
Suburban areas are becoming more attractive due to improved infrastructure and amenities. This development is making these regions more desirable, contributing to the rise in property values. As a result, buyers are willing to pay more for the benefits of suburban life.
Moreover, the economic climate in Denmark is stable, which supports the housing market. Low-interest rates and a strong economy encourage people to invest in property, further driving up prices. This economic stability is a key factor in the ongoing price increases.
In summary, the combination of demand for suburban living, economic factors, and regional development is influencing the housing market in Denmark. These elements are crucial in understanding why property prices continue to climb in 2024.
Sources: Videncentret Bolius
13) In 2024, properties with private gardens appreciated 6% more than those without
In 2024, properties with private gardens saw a 6% higher appreciation compared to those without.
This increase is partly due to Denmark's new property valuation system, which aimed to better reflect market values. By using a broad data basis from public registers and automating the valuation process, the system likely highlighted the added value of private gardens, a feature many homebuyers find desirable.
Market trends in Denmark were also shaped by factors like interest rates, taxes, and economic conditions. Despite higher taxes for apartments, property prices stayed relatively stable, which might have nudged buyers towards homes with gardens, seeing them as a better long-term investment.
Private gardens offer more than just aesthetic appeal; they provide personal outdoor space, which became increasingly valuable during times when people spent more time at home. This shift in lifestyle preferences likely contributed to the increased demand for properties with gardens.
Moreover, the economic stability in Denmark, coupled with low interest rates, made it easier for buyers to invest in properties that offered more than just indoor living space. This environment encouraged a focus on homes with gardens, which were perceived as offering greater lifestyle benefits.
Sources: Clemens Law, YouTube, Vurderingsportalen
14) Denmark’s housing stock is expected to grow by at least 3% through new developments by 2025
By 2025, Denmark's housing stock is expected to grow by at least 3% due to new developments.
This growth is largely fueled by the rising demand for housing, especially in bustling urban areas like Copenhagen. The city has experienced a notable population surge, with projections showing an increase of 110,000 residents by 2050. To keep up, Copenhagen is actively planning and developing new residential zones.
The municipality's strategy involves expanding existing neighborhoods and creating new ones, such as the Østhavnen (East Harbour) project. These initiatives are essential to meet the housing needs of the city's growing population. Despite challenges like elevated interest rates and economic fluctuations in 2023 and 2024, the housing market is showing signs of stabilization.
This stability, along with strategic urban development plans, supports the projected expansion of the housing stock by 2025. The Østhavnen project is a prime example of how Copenhagen is addressing the demand, aiming to transform the area into a vibrant residential and commercial hub. The city's efforts are crucial in ensuring that the housing supply keeps pace with the increasing population.
In addition to Østhavnen, other projects are underway to expand the city's housing capacity. These developments are not just about adding more homes; they are about creating sustainable and livable communities. The focus is on integrating green spaces, efficient public transport, and modern amenities to enhance the quality of life for residents.
As Denmark continues to grow, the housing market's resilience and adaptability will be key. The combination of strategic planning and market stability is paving the way for a robust housing sector by 2025. Urban development plans are crucial in this journey, ensuring that the city can accommodate its future residents.
Sources: Københavns Kommune's Projections, Housing Market Analysis, Urban Development Plans
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.
15) In 2024, 18% of Danish renters considered buying a property within two years
In 2024, 18% of Danish renters reported considering buying a property in the next two years.
Many young Danes, especially those in their 20s, have been drawn to renting in urban areas like Copenhagen. The high housing prices and limited availability of affordable homes made renting a more feasible option. However, as they near their 30s, their focus shifts. They start craving more space and a closer connection to nature, which often means considering homeownership.
The Copenhagen housing market is notoriously tough. With sky-high prices and rising rents, young people find it challenging to buy homes without financial support from parents or other sources. Yet, despite these hurdles, the dream of owning a home remains strong among renters.
Interestingly, this trend is not just about financial constraints. It's also about lifestyle changes. As young Danes grow older, their priorities evolve. They begin to value the idea of having their own space, perhaps with a garden or a view of the countryside, over the hustle and bustle of city life.
Moreover, the desire for homeownership is not just a personal aspiration. It's also influenced by broader economic factors. For instance, the potential for property value appreciation and the stability that comes with owning a home are significant motivators.
In summary, while the barriers to homeownership in Denmark are real, the aspiration to own a home is deeply rooted in the changing lifestyles and economic considerations of young Danes.
Sources: Finans Danmark, Colliers, Estate
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.