Colliers Copenhagen Property Market Report 2019

Aalborg in brief – Market Report 2019

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Aalborg in brief

Housing drives growth in the Aalborg market In 2018, the Aalborg investment property market was driven mainly by brisk transaction activity in the residential market, involving both new residential properties and off-plan sales. Commercial properties, including industrial/logistics facilities, also continued to attract strong investor interest, with major high-quality office properties in particularly strong demand, but short supply. However, both investment and occupational demand for retail properties has weakened, driving up vacancy rates in this segment. Big city aspirations Aalborg strives to develop a growth axis, stretching from Aalborg Airport in the northern part of the city and across central districts to south-eastern Aalborg, home of Aalborg University and future location of the new University Hospital, scheduled for completion in a few years’ time. The vision is to boost Aalborg’s identity as a big city by making the city centre an important business location and a tourist destination appealing to both business and leisure visitors. Foreign investors are zooming in on Aalborg The Aalborg investment property market has traditionally been dominated by local inves- tors, but both foreign investors and institutional investors have shown stronger appe- tite for the Aalborg market in recent years. In addition, several financially strong private investors have entered the Aalborg market, which has driven up demand and, by exten- sion, intensified competition. Sustained strong demand Supported mainly by favourable demographics and a thriving business community, the outlook for the investment property market is bright, with sustained strong demand across the board except for the retail segment. In particular, industrial/logistics facilities and up-to-date office buildings are expected to attract exceptionally strong demand in future.

Aalborg – Denmark’s fourth largest city

The North Denmark Region (Region Nordjylland) 215,122 Population (1 Oct. 2018)

Given a population growth forecast of 10.9% by 2045, Aalborg is a high-growth city

In Aalborg, transactions involved mainly newly built or turnkey residential properties in 2018. Six out of the top-ten transactions in terms of volume involved new-stock residentials. Because of residential construction, supply is expected to outstrip demand in 2019 and 2020, possibly translating into stagnant or even downtrending rental and ownership prices in Aalborg

 JOSEPH ALBERTI, joseph.alberti@colliers.com

Note: Population figure for City of Aalborg. Source: Statistics Denmark

For an introduction to various Aalborg districts, please refer to the extended online edition of this Market Report, www.colliers.dk

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