Colliers Aarhus Delrapport 2023 UK

17

0.17%

Realised sales prices (DKK)

44%

58%

Laydays

Units for sale

Note : Development between Q3 2021 and Q3 2022, owner- occupied apartments in City of Aarhus. Source : Colliers, Finans Danmark.

Change in framework conditions affects ownership housing market

Aarhus Local market report for Colliers Market Report 2023

After more than a decade of price hikes, a cocktail of record-high inflation, stricter financial requirements and higher costs has cooled the previously red-hot Aarhus ownership housing market. The slowdown follows on the heels of a period during the pandemic when square metre prices soared due to e.g. record-low supply and favourable financing possibilities. Historically high infla- tion has served to erode real wages, directly impairing Danes’ purchasing power. Meanwhile, buyers have faced rising interest rates and stricter financial requirements. Although H1 2022 saw much higher home loan interest rates, ownership housing prices did not drop. Not till H2 2022 did square metre prices drop and resale periods lengthen. Despite the slowdown in H2 2022, the Aarhus residential market is by no means expected to suffer the same se vere blow it was dealt during the financial crisis, as today’s homeowners enjoy more robust personal finances, redu- cing the risk of forced sales. The downtrend in prices is predicted to continue in the years ahead, albeit to some extent stabilising on account of a certain sustained short age of ownership housing, and in step with the procure ment of financing becoming easier, once interest rates start to come down as expected.