Colliers Copenhagen Property Market Report 2019

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Copenhagen Property Market Report 2019

Still going strong

Despite financial market volatility and fears of slowing global growth, the Danish commercial property market is still going strong: In 2018, capital growth exceeded 4% in the Greater Copenhagen investment property market, and domestic and international property investors continue to show a healthy appe- tite for investments, in the office and industrial/logistics markets in particular. The residential market remains attractive, too, although the volume of new developments coming to the market has put a slight downward pressure on rents as well as slowed forward purchases. Short-term interest rates continue to be negative, with property financing available at extremely low rates via the highly efficient Danish mortgage financing system. Property transaction activity slowed in 2018, with the total volume of transactions falling 20% short of the record-breaking level of 2017, mainly due to a shortage of adequately priced prod- ucts. Still, 2018 comes in second in history in terms of national transaction volumes. This 2019 market report by Colliers International offers an over- view of key economic trends and of the Copenhagen commercial property market, including occupational and investment market information as well as details on transactions across sectors and submarkets. This year, we have also included a brief introduction to the most important property markets outside Copenhagen. After years of capital growth across the board, inherent risks have increased in the property market, and the margin for errors has narrowed. The market is not the remedy to cure all mistakes. Highly qualified advisory services are therefore becoming increasingly important.

The 2018 merger between Colliers International and Sadolin & Albæk created a new market leader with 150 professionals in Copenhagen and four regional offices. As the undisputed market leader in the Danish commercial and investment property market, we are dedicated to providing top-of-the-line advisory and transaction services. Our success is measured by our clients’ success.

Copenhagen, February 2019

Peter Winther, Partner and CEO (MRICS) peter.winther@colliers.com

Photo: Thomas Sinkbæk