Colliers Denmark Market Report 2024

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COLLIERS MARKET REPORT 2024

The 2022 slowdown took effect in 2023

Record-high interest rates and recessionary concerns dampened transaction activity in 2023. However, the final quarter of 2023 saw a marked increase in activity in the real estate investment market with a number of large deals. Towards the end of 2023, the prospect of looser monetary policy led to a significant drop in market inter est rates, providing grounds for optimism about activity in 2024.

The transaction volume in 2023 ended at DKK 45 billion, marking a sharp decline compared to the previous year and indicating a turbulent investment market.

Market activity has been affected by the wait-and-see attitude of both buyers and sellers. Sellers have presumably hoped that inflation would be dealt with quickly, leading to a drop in interest rates, which would bring down yield requirements and justify higher selling prices. On the other hand, there have been buyers who have been unable to reconcile their business plan with sellers’ price expectations and high interest rates. Both parties’ wait-and-see strategy has led to a lower transaction volume and reduced market transparency.

Sharp drop in transaction volume in 2023

120

100

80

60

40

20

0

14

15

16

17

18

19

20

21

22

23

Greater Copenhagen

Denmark, excluding Greater Copenhagen

Note: Transaction volume (DKK billion), investment property, Denmark, 2023. Source: Colliers