Colliers Denmark Market Report 2024

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OFFICE - COLLIERS MARKET REPORT 2024

HOTEL INDUSTRIAL & LOGISTICS RETAIL RESIDENTIAL OFFICE

Kalvebod Brygge 32, Copenhagen CBD Photo: CBRE

500 million has fallen sharply compared to both 2021 and 2022. However, deals of this size are still being completed in the Nordic region, which shows that there is still an appetite for office properties. In 2021 and 2022, property companies accounted for more than half of the transactions in the office market. In good times, there is a lot of competition to buy attrac tive properties, and especially major property funds and property companies can bid prices that institutional investors cannot match. In 2023, the picture was differ ent as institutional investors accounted for a larger share of high-volume transactions in the office market. In the current situation of general reluctance to buy office properties, pension funds and other institutional inves tors have the opportunity to make deals that might not have been possible in a market with high activity - espe cially since several Swedish property companies were hit

hard by rising interest rates and had to sell properties to meet their loan agreements. In addition, we have seen a trend in the Nordics of properties of this size being taken over by domestic (Nordic) buyers, which indicates that the larger international investors and asset managers have been careful in 2023. There is still a lot of money allocated to property invest ments, and we expect to see more deals in the invest ment market as both buyers and sellers accept that pric ing has shifted. And when international investors become aware of the strong Danish occupational market, which is not at all threatened by the “work-from-home effect” to the same extent as several other Western countries.