Authored by the expert who managed and guided the team behind the Denmark Property Pack
Everything you need to know before buying real estate is included in our Denmark Property Pack
Yes, we update this article about rental yields in Denmark every month so you always get the freshest data available.
Denmark's residential rental market offers steady returns, but understanding what drives those returns takes local knowledge and up-to-date figures.
This guide breaks down everything you need to know about rental yields in Denmark in 2026, from gross and net yields to neighborhood comparisons and hidden costs.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Denmark.
Insights
- Denmark's national gross rental yield sits around 4.2% in early 2026, but Copenhagen averages just 2.9% while Aalborg reaches nearly 4.8%, showing how much location matters in Danish property investment.
- Smaller apartments (studios and one-bedrooms) consistently deliver the highest yields per square meter across Denmark because rent scales better than purchase price in compact units.
- Denmark's rental vacancy rate hit a record low of roughly 2% in late 2025, which means landlords face minimal empty-unit risk but also fierce competition when buying.
- Aarhus recorded the tightest vacancy in Denmark at around 1.2% in Q3 2025, making it one of the safest markets for consistent rental income.
- The gap between gross and net yields in Denmark typically runs 1.5 to 2 percentage points, mostly eaten up by property taxes like grundskyld and ejendomsværdiskat.
- Prime Copenhagen neighborhoods like Indre By and Frederiksberg often yield just 2 to 3% gross because property prices are extremely high relative to achievable rents.
- The Greater Copenhagen Light Rail opening in stages through 2026 could lift rents in outer suburbs connected to new stations.
- Full-service property management in Denmark typically costs 6 to 10% of collected rent, plus around one month's rent for tenant placement.
What are the rental yields in Denmark as of 2026?
What's the average gross rental yield in Denmark as of 2026?
As of early 2026, the average gross rental yield for residential property in Denmark sits at approximately 4.2%, which reflects a market where high property prices in major cities balance out stronger returns in secondary areas.
Most typical residential properties in Denmark fall within a gross yield range of roughly 3% to 5%, depending on whether you're buying in expensive Copenhagen or more affordable cities like Aalborg or Aarhus.
Denmark's national average of 4.2% is moderate by European standards, largely because the country's stable economy, tight regulation, and expensive core cities keep prices high relative to rents.
The single biggest factor shaping gross yields in Denmark right now is property price variation between cities, since rents don't swing nearly as much as purchase prices when you compare Copenhagen to Aalborg.
What's the average net rental yield in Denmark as of 2026?
As of early 2026, the average net rental yield for residential property in Denmark is approximately 2.5%, which is what landlords actually keep after accounting for all recurring costs.
The typical gap between gross and net yields in Denmark runs about 1.5 to 2 percentage points, meaning a property yielding 4.2% gross will realistically deliver around 2.5% net after expenses.
Property taxes are the biggest yield reducer in Denmark, specifically the combination of grundskyld (land tax) and ejendomsværdiskat (property value tax), which vary significantly depending on your municipality and assessed property value.
Most standard investment properties in Denmark deliver net yields somewhere between 1.5% and 3.5%, with the lower end typical for prime Copenhagen apartments and the higher end achievable in Aarhus or Aalborg.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Denmark.
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.
What yield is considered "good" in Denmark in 2026?
In Denmark in 2026, a gross rental yield of 4% to 5% is generally considered "good" by local investors, while anything above 5% is seen as very good and typically requires buying outside prime Copenhagen or focusing on smaller units.
The threshold that separates average from high-performing properties in Denmark is roughly 5% gross, since hitting that level usually means you've either found a sharp purchase price, an unusually strong rental location, or you're investing in studios and one-bedrooms where rent per square meter is highest.
How much do yields vary by neighborhood in Denmark as of 2026?
As of early 2026, gross rental yields in Denmark can range from as low as 2% in prime central neighborhoods to as high as 6% in value-oriented or student-driven pockets, representing a spread of roughly 4 percentage points depending on where you buy.
The highest-yield neighborhoods in Denmark tend to be outer urban districts or secondary cities with solid renter demand but more accessible prices, like Valby and Sydhavn in Copenhagen, Brabrand and Viby in Aarhus, or Vestbyen and Nørresundby in Aalborg.
The lowest-yield neighborhoods are typically prestige areas where property prices are extremely high, such as Indre By, Frederiksberg, and Østerbro in Copenhagen, or Frederiksbjerg and Trøjborg in Aarhus.
The main reason yields vary so much across Denmark is that property prices swing dramatically between neighborhoods while rents stay more stable, so expensive areas compress yields even when rents are high.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Denmark.
How much do yields vary by property type in Denmark as of 2026?
As of early 2026, gross rental yields in Denmark range from roughly 2.5% for detached houses in prime suburbs to around 6% for well-located studios and one-bedroom apartments, with two to three-bedroom apartments and rowhouses falling somewhere in between at 3% to 5%.
Studios and one-bedroom apartments currently deliver the highest average gross yields in Denmark because their purchase prices are lower while rent per square meter remains strong, especially in cities with large student and young professional populations.
Detached houses and large family apartments typically deliver the lowest yields in Denmark because their purchase prices jump significantly while rents don't scale up proportionally, particularly in desirable school districts and premium suburbs.
The key reason yields differ between property types in Denmark is that smaller units attract more renters competing for less space, which keeps rent per square meter high, while larger properties are priced for owner-occupiers who pay a premium for space and lifestyle.
By the way, you might want to read the following:
What's the typical vacancy rate in Denmark as of 2026?
As of early 2026, the average residential vacancy rate in Denmark's private rental market is approximately 2%, which represents a record low and signals extremely tight competition for available units.
Vacancy rates across Danish neighborhoods vary dramatically, from around 1.2% in Aarhus to roughly 3% in Copenhagen and as high as 5.3% in Aalborg, so your location choice significantly impacts how often your property sits empty.
The main factor driving Denmark's low vacancy right now is a sustained shortage of rental housing combined with strong demand from students, young professionals, and international workers, particularly in major cities.
Denmark's national vacancy rate of roughly 2% is well below historical averages and significantly tighter than many European markets, which is good news for landlords worried about income gaps but also means buying opportunities are competitive.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Denmark.
What's the rent-to-price ratio in Denmark as of 2026?
As of early 2026, the average rent-to-price ratio in Denmark is approximately 4.2% annually (or about 0.35% monthly), which means for every 1,000,000 DKK you spend on a property, you can expect roughly 42,000 DKK in annual rent before expenses.
A rent-to-price ratio above 4% is generally considered favorable for buy-to-let investors in Denmark, and since this ratio is essentially the same formula as gross yield expressed differently, hitting 4% to 5% means you're in solid yield territory.
Denmark's rent-to-price ratio is moderate compared to other European capitals, sitting lower than cities in Eastern Europe or Southern Europe but similar to other Scandinavian markets where stable economies and high property prices compress returns.
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.
Which neighborhoods and micro-areas in Denmark give the best yields as of 2026?
Where are the highest-yield areas in Denmark as of 2026?
As of early 2026, the highest-yield areas in Denmark include Aalborg neighborhoods like Vestbyen and Nørresundby, Aarhus districts like Brabrand and Viby, and within Copenhagen, outer areas like Valby and Sydhavn where prices are more reasonable.
These top-performing areas in Denmark typically deliver gross rental yields in the 4.5% to 6% range, with Aalborg and Aarhus neighborhoods often reaching the higher end while Copenhagen's Valby and Sydhavn sit closer to 4% to 5%.
The main characteristic these high-yield areas share is solid renter demand driven by universities, hospitals, or large employers, combined with property prices that haven't been bid up to prestige levels like Copenhagen's central core.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Denmark.
Where are the lowest-yield areas in Denmark as of 2026?
As of early 2026, the lowest-yield areas in Denmark are premium neighborhoods like Indre By, Frederiksberg, and Østerbro in Copenhagen, plus Frederiksbjerg and Trøjborg in Aarhus, and Odense C in Odense.
These low-yield areas typically deliver gross rental yields of just 2% to 3%, with some prime Copenhagen properties dipping even lower when buyers pay significant premiums for prestige addresses.
The main reason yields are compressed in these Danish neighborhoods is that property prices are driven up by strong owner-occupier demand and scarcity, while rents can't rise fast enough to keep pace, especially given rent regulation in parts of the market.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Denmark.
Which areas have the lowest vacancy in Denmark as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy rates in Denmark include Aarhus C and Trøjborg in Aarhus, Nørrebro and Vesterbro in Copenhagen, and areas near universities and hospitals in Odense like the SDU corridor.
These low-vacancy areas in Denmark typically experience vacancy rates below 2%, with Aarhus neighborhoods sometimes running as tight as 1% to 1.5%, meaning properties rarely sit empty for long.
The main demand driver keeping vacancy low in these Danish neighborhoods is the concentration of students, young professionals, and healthcare workers who need rental housing close to universities, hospitals, and central employment hubs.
The trade-off investors face when targeting these low-vacancy areas is that the same strong demand often pushes purchase prices up, compressing yields even as occupancy stays reliably high.
Which areas have the most renter demand in Denmark right now?
The neighborhoods currently experiencing the strongest renter demand in Denmark include Vesterbro, Nørrebro, and Amagerbro in Copenhagen, Aarhus C and Trøjborg in Aarhus, and Odense C and the SDU corridor in Odense.
The renter profile driving most demand in these Danish areas is young professionals aged 25 to 40, students at major universities, and international workers who need flexible, well-located housing without the commitment of buying.
Rental listings in these high-demand Danish neighborhoods typically get filled within days rather than weeks, with well-priced apartments in Aarhus and Copenhagen's popular districts often receiving multiple applications within 48 hours of listing.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Denmark.
Which upcoming projects could boost rents and rental yields in Denmark as of 2026?
As of early 2026, the top three infrastructure projects expected to boost rents in Denmark are the Greater Copenhagen Light Rail (Hovedstadens Letbane) opening in stages, the Lynetteholm development with related M5 metro planning, and Odense's continued light rail expansion discussions.
The neighborhoods most likely to benefit from these projects include outer Greater Copenhagen suburbs along the new light rail corridor, areas adjacent to Nordhavn and Østerbro near Lynetteholm, and districts like Vollsmose in Odense connected to improved transit.
Investors might realistically expect rent increases of 5% to 15% over several years in neighborhoods directly connected to new transit stations, though the full impact typically takes time to materialize as accessibility improvements become part of daily life.
You'll find our latest property market analysis about Denmark here.
Get fresh and reliable information about the market in Denmark
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What property type should I buy for renting in Denmark as of 2026?
Between studios and larger units in Denmark, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments outperform larger units in Denmark in terms of rental yield and typically enjoy strong occupancy thanks to consistent demand from students and young professionals.
Studios in Denmark typically deliver gross yields of 4% to 6% (around 160,000 to 240,000 DKK or 21,000 to 32,000 EUR or 23,000 to 35,000 USD annually on a 4 million DKK property), while larger three-bedroom units often yield just 3% to 4%.
The main factor explaining why studios outperform in Denmark is that rent per square meter is highest for small units, while purchase prices don't scale down proportionally, creating a better ratio of income to investment.
One scenario where larger units might be the better choice in Denmark is if you're targeting families relocating for work in suburban areas with good schools, where longer tenancies and stable, higher-income renters can offset the lower yield percentage.
What property types are in most demand in Denmark as of 2026?
As of early 2026, the most in-demand property type for renters in Denmark is the well-located one to two-bedroom apartment, which offers the right balance of space and affordability for the largest pool of tenants.
The top three property types ranked by current tenant demand in Denmark are one-bedroom apartments (highest demand), two-bedroom apartments (strong family and couple demand), and rowhouses in family-friendly suburbs with good transit connections.
The primary trend driving this demand pattern in Denmark is urbanization combined with housing affordability constraints, as more Danes rent longer before buying and international workers need flexible housing in major employment centers.
One property type currently underperforming in demand in Denmark is the large detached villa rental, which appeals to a narrow tenant pool of affluent families and often sits vacant longer while commanding lower yields.
What unit size has the best yield per m² in Denmark as of 2026?
As of early 2026, the unit size range delivering the best gross rental yield per square meter in Denmark is roughly 30 to 50 square meters, which corresponds to studios and compact one-bedroom apartments.
These optimal-sized units in Denmark typically generate gross yields of 4.5% to 6% (around 180,000 to 240,000 DKK, or 24,000 to 32,000 EUR, or 26,000 to 35,000 USD annually on a 4 million DKK property), outperforming larger apartments on a per-square-meter basis.
The main reason larger units have lower yield per square meter in Denmark is that purchase prices increase faster than rents as you add bedrooms, while very small micro-units can face regulatory limits or tenant hesitancy that caps their rent premium.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Denmark.
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.
What costs cut my net yield in Denmark as of 2026?
What are typical property taxes and recurring local fees in Denmark as of 2026?
As of early 2026, annual property taxes for a typical rental apartment in Denmark include ejendomsværdiskat (property value tax) and grundskyld (land tax), which combined can range from roughly 15,000 to 40,000 DKK (2,000 to 5,300 EUR or 2,200 to 5,800 USD) depending on your property's assessed value and municipality.
Other recurring local fees landlords must budget for in Denmark include building association charges (if applicable) and potential waste collection fees, typically adding another 5,000 to 15,000 DKK (650 to 2,000 EUR or 720 to 2,200 USD) annually.
These taxes and fees in Denmark typically represent 10% to 20% of gross rental income, which is a significant chunk of why the gap between gross and net yields runs 1.5 to 2 percentage points.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Denmark.
What insurance, maintenance, and annual repair costs should landlords budget in Denmark right now?
Annual landlord insurance for a typical rental property in Denmark costs roughly 3,000 to 8,000 DKK (400 to 1,050 EUR or 440 to 1,150 USD), though this varies significantly based on property type, location, and coverage level.
The recommended annual maintenance and repair budget in Denmark is roughly 0.5% to 1% of property value, which for a 3 million DKK apartment means setting aside 15,000 to 30,000 DKK (2,000 to 4,000 EUR or 2,200 to 4,400 USD) per year.
The type of repair expense that most commonly catches Danish landlords off guard is building-wide upgrades mandated by the housing association, such as roof replacements, facade renovations, or pipe system overhauls, which can trigger large one-time assessments.
All combined, landlords in Denmark should realistically budget 20,000 to 45,000 DKK (2,650 to 6,000 EUR or 2,900 to 6,500 USD) annually for insurance, maintenance, and repairs on a typical rental apartment.
Which utilities do landlords typically pay, and what do they cost in Denmark right now?
In Denmark, tenants typically pay for their own electricity, heating, and water, while landlords usually cover common-area costs like stairwell lighting, shared cleaning, and building maintenance through association fees or direct charges.
For the landlord-paid portion (primarily common-area costs), the monthly expense in Denmark typically runs 500 to 1,500 DKK (65 to 200 EUR or 70 to 220 USD), though this is often bundled into the building's operating budget rather than billed separately.
What does full-service property management cost, including leasing, in Denmark as of 2026?
As of early 2026, full-service property management in Denmark typically costs 6% to 10% of collected rent monthly (around 600 to 1,500 DKK, or 80 to 200 EUR, or 90 to 220 USD per month on a 10,000 DKK rent), with higher percentages common for smaller or more management-intensive properties.
On top of ongoing management, tenant-placement or leasing fees in Denmark typically run about one month's rent (so 10,000 to 15,000 DKK, or 1,300 to 2,000 EUR, or 1,450 to 2,200 USD for a typical apartment), charged each time a new tenant is found.
What's a realistic vacancy buffer in Denmark as of 2026?
As of early 2026, landlords in Denmark should set aside roughly 4% to 6% of annual rental income as a vacancy buffer, even though the national vacancy rate is currently around 2%, because your individual property won't perfectly match the national average.
This buffer translates to approximately 2 to 3 weeks of vacancy per year in Denmark, which accounts for turnover time between tenants and any unexpected gaps, with landlords in higher-vacancy cities like Aalborg potentially needing closer to 3 to 4 weeks.
Buying real estate in Denmark can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Denmark, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Statistics Denmark - Huslejeindeks | It's Denmark's official statistics agency, making it the most reliable source for rent trend data in the country. | We used it to track how fast rents have been moving in Denmark and to validate yield calculations. We also cross-checked private rent datasets against these official figures. |
| Statistics Denmark - Boligbestanden | It's the official annual housing stock count built from administrative registers, so it's the most accurate inventory of Danish housing. | We used it to identify which property types dominate the residential market and should be included. We kept our analysis focused on common segments like apartments, houses, and rowhouses. |
| StatBank Denmark | It's the official public database behind all Statistics Denmark tables and releases. | We used it as the drill-down layer when we needed Denmark-wide counts or breakdowns by geography and type. We also cross-checked totals quoted in other reports. |
| Danmarks Nationalbank | The central bank provides top-tier macro and financial context that affects property prices, rents, and investor expectations. | We used it to explain why Danish yields are structurally lower than in many countries. We also ensured our analysis stayed consistent with broader economic conditions. |
| Global Property Guide - Denmark | It's a widely used cross-country dataset with a stated methodology and frequent updates, most recently December 2025. | We used it as our primary numeric anchor for gross yields heading into January 2026. We also used its city and unit-size breakdowns to show how yields vary across Denmark. |
| EjendomDanmark via Ritzau | EjendomDanmark is the main industry organization for Danish property, and Ritzau is Denmark's standard presswire for official releases. | We used it to anchor Denmark's national rental vacancy rate in late 2025. We then translated that into a realistic vacancy buffer for landlord budgeting. |
| Fagbladet3f | It's a national Danish outlet that clearly cites underlying EjendomDanmark statistics in its reporting. | We used it to show how vacancy differs sharply by city, which is a key driver of yield stability. We also used it to explain why best yield and lowest vacancy often don't overlap. |
| Vurderingsportalen - Ejendomsværdiskat | It's the official government portal explaining how Danish property value tax is calculated. | We used it to explain recurring taxes that reduce net yield. We also used it to avoid outdated rules of thumb about Danish housing tax. |
| Vurderingsportalen - Grundskyld | Same official portal explaining land tax, which is one of the biggest annual yield reducers for many Danish properties. | We used it to explain what grundskyld is and why it varies by municipality. We referenced it when explaining why similar rentals can have different net yields. |
| Vurderingsportalen - Municipal grundskyld rates | It's an official rate table showing land tax rates across all Danish municipalities from 2024 to 2028. | We used it to show the range of land-tax rates across Denmark with concrete examples. We then converted that into practical yield impact guidance. |
| Skat.dk - Boligskat | It's Denmark's tax authority explaining exactly how property owners pay their housing taxes. | We used it to make the tax discussion actionable by showing where taxes appear and how they're settled. We also checked that our net yield cost list matches how Denmark actually bills owners. |
| Skatteministeriet - Municipal taxes 2026 | It's the Ministry's own statistical publication of municipal tax rates, which is the definitive source. | We used it to cross-check the official rate landscape for 2026. We also used it to explain why tax drag on yield is very location-sensitive in Denmark. |
| dinletbane.dk - Copenhagen Light Rail | It's the official project communication channel for the Greater Copenhagen Light Rail. | We used it to identify infrastructure upgrades that can shift renter demand in specific corridors. We named the kinds of places where yields can improve due to better accessibility. |
| Copenhagen Municipality - Lynetteholm/M5 | It's a primary-source municipal record documenting official decisions, not just commentary. | We used it to support claims about upcoming projects with verifiable public documentation. We translated it into neighborhood-level implications for areas near Østerbro, Nordhavn, and Refshaleøen. |
| Odense Letbane | It's the official source for Odense's light rail project updates and expansion discussions. | We used it to include Odense in our infrastructure discussion. We referenced it when explaining how transit improvements can affect rent expectations in specific corridors. |
| DEAS A/S | DEAS is one of Denmark's largest property management companies with over 30 years of experience. | We used it to validate property management fee structures in Denmark. We also referenced their service model when estimating realistic management costs for landlords. |
| Dansk Byudvikling | It's a Danish real estate news source that reported on the record-low vacancy trend with clear data citations. | We used it to confirm the tight market trend earlier in 2025. We cross-referenced their figures with the latest EjendomDanmark release to ensure consistency. |
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