Colliers Aarhus Delrapport 2023 UK

“Risskov Brynet”, Risskov

Increasingly cautious sentiment in the investment market

a slump in transaction activity, and driving up yield require ments on Aarhus residential investment property. In addi tion, the market changed to become largely a buyer’s market in 2022, whereas it was a seller’s market in 2021. Residential investment property remains investors’ top pick in Aarhus, and in anticipation of declining interest rates and, by exten sion, improved financing options, transaction activity is ex pected to pick up in the segment in 2023 relative to H2 2022.

Although 2022 started with exceptionally favourable market conditions on the back of historically strong transaction ac tivity, the situation changed as the year wore on and inves tors became increasingly guarded. Rising interest rates and a widening gap between buy-side and sell-side price expec tations severely impinged on market conditions, prompting

Typical yield requirements

Residential

Change

2020 3.75% 4.00% 4.25% 4.75% 4.50% 5.25%

2021 3.75% 4.00% 4.25% 4.75% 4.50% 5.00%

2022

2023 3.75% 4.00% 4.00% 4.50% 4.25% 4.75%

2022-23

Aarhus*

Prime

3.375%

50 bps 25 bps 50 bps 25 bps 25 bps 25 bps

Secondary

3.75% 3.50% 4.25% 4.00% 4.50%

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 : Net initial yields, residential, Aarhus. Level in 2023 indicates Colliers’ estimation at year-start. Source : Colliers.