Colliers Copenhagen Property Market Report 2019

The Triangle Region in brief – Market Report 2019

86

LOCATIONS THE TRIANGLE REGION IN BRIEF Read more

The Triangle Region in brief

Kolding, Vejle and Fredericia – a strong trio Throughout 2018, activity was brisk in the Triangle Region investment property market, with demand surging in all segments, supported by strong demographics. In addition, the biggest towns and cities in the region benefit from increasing urbanisation. Strong retail scene Unlike many other parts of Denmark, shops and restaurants in the region have seen an increase in retail sales, driven by population growth and stronger consumer spending. As a result, demand has picked up in the segment. Incidentally, Vejle and Fredericia now each boast a Michelin-starred restaurant. In addition, the strong inflow of new residents has given rise to new development areas, densification of inner-city districts and the residen- tial conversion of dilapidated commercial units in central locations. Important transport hub Given its central location in Denmark and well-developed infrastructure, the Triangle Region is an important transport hub, making it an ideal and sought-after location for logis- tics activities in particular, but also for office-intensive and industrial businesses. In recent years, strong demand has driven down vacancy rates mainly in the industrial/ logistics segment. Residential sales account for sharp increase in transaction volume Activity is brisk in the regional investment property market, with active players including local, regional and national investors as well as an increasing number of institutional and international investors in pursuit of both office and logistics properties. In 2018, Swedish investor Niam acquired both office and residential assets at a total investment volume upwards of DKK 600m. Housing shortage Vacancy rates are expected to continue on a downtrend in several segments, with office and logistics space seeing a resulting increase in rent levels. Overall, investors are believed to increasingly zoom in on the region due to its moderate square metre prices. Finally, housing demand is expected to remain strong as the pipeline of new housing is still insufficient to match demand.

The Triangle Region 1 – main cities Vejle, Kolding and Fredericia

The Region of Southern Denmark (Region Syddanmark) 114,594 Population Vejle (1 Oct. 2018) 92,709 Population Kolding (1 Oct. 2018) 51,377 Population Fredericia (1 Oct. 2018)

By 2045, 10.7% population growth is forecast for the three principal municipalities combined

Residential transaction volume up by more than 50% in 2018 on 2017

1 Composed of seven municipalities of which Vejle, Kolding and Fredericia are the biggest.

 JOSEPH ALBERTI, joseph.alberti@colliers.com

Note: Population figure for respective municipalities. Source: Statistics Denmark

For an introduction to various locations in The Triangle Region, please refer to the extended online edition of this Market Report, www.colliers.dk

WWW