Colliers Aarhus Delrapport 2023 UK

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Location and differentiation in focus A broader range of options has given Aarhus tenants and newcomers much more freedom of choice when it comes to finding their future home. In consequence, the oldest hous ing stock in less attractive locations – cost-regulated proper- ties excepted as they compete on different terms – have seen an increase in vacancies. However, a large portion of the relatively outdated stock enjoys central locations that have made it possible for these properties to retain tenants despite the added supply, because location remains a key parameter for tenant demand. Even with the sharp increase in supply, the past decade’s va cancy trend shows that the Aarhus residential market con tinues to be driven by strong demand, which can absorb the added supply. Similarly, the current pipeline of residential newbuilding suggests that despite times of uncertainty, historically high construction costs and historically ample supply, supply will remain strong in the years ahead, albeit not as strong as in recent years. Mainly new urban districts and redevelopment of centrally located business areas will drive future supply. Due to the improved supply and demand balance, and in some locations even oversupply, rent levels in Aarhus multi- storey apartment buildings have levelled off. However, it is important to emphasise that the trend is both area- and product-specific, with individual locations and schemes

therefore still commanding rising rent levels. As proved by e.g. the conversion of the Godsbane area and other resi- dential newbuilds in central Aarhus, which better meet the housing demand of students and graduates, it is possible to achieve rental prices that exceed average market rent levels. By the same token, new urban districts where the city meets nature, e.g. Bindesbøll Byen, have proved highly sought- after, seeing high rent levels and exceptionally low vacancy rates. The outlook for the coming years will shape the future Aar- hus residential market, with developers expected to increas ingly focus on developing the right product, e.g. residential units targeting senior age groups, the continued large stu dent ranks as well as new graduates.

Aarhus Local market report for Colliers Market Report 2023

Typical rent levels

Residential

Change

2020 1,650 1,475 1,500 1,225 1,275 1,000

2021 1,650 1,475 1,500 1,225 1,275 1,000

2022 1,650 1,475 1,500 1,225 1,275 1,000

2023 1,650 1,475 1,500 1,225 1,275 1,000

2022-23

Aarhus*

Prime

0% 0% 0% 0% 0% 0%

Secondary

Aarhus**

Prime

Secondary

Aarhus environs

Prime

Secondary

* Includes Aarhus Ø, Trøjborg, Åbyhøj, Aarhus N, Risskov and Viby ** Includes Tilst, Brabrand, Gellerup, Højbjerg and Vejlby

Note : Rent levels quoted in DKK per sq m p.a. for new residential units of 75-80 sq m, ground-floor and penthouse units excepted, Aarhus. Level in 2023 indicates Colliers’ estimation at year-start. Source : Colliers.