Colliers Denmark Market Report 2024

39

RESIDENTIAL - COLLIERS MARKET REPORT 2024

HOTEL INDUSTRIAL & LOGISTICS RETAIL RESIDENTIAL OFFICE

The City of Copenhagen has tried to identify the reasons. It turns out that more than half of the movers would have liked to stay but were unable to find a home that suited both their needs and budget. In addition, many movers are dissatisfied with transport and parking options by car. The municipality’s data also show that most movers are quite young; over half are under 30 years old. More than half live with a partner when they move. Almost half of the movers are couples or singles with children, and fam ilies with children typically move out of the city when the children are in nursery school or even younger. About one in four moves to a municipality near Copenhagen. Those moving to the capital are mainly students, young professionals, older couples and singles without children living at home. Half of the newcomers are between 18-25 years old, and three out of four come from Zealand. The capital city has experienced increasing net out-migration in recent years, and in 2022 alone, 5,000 people moved out of Copenhagen.

this need for more space, so they move to the sur rounding municipalities (today, few people can afford a Copenhagen dwelling with a size of 100+ sq m). This trend is expected to continue in the future. Neighbouring municipalities are incorporating this trend into their local planning, which continues to see the conversion of for mer industrial areas to residential use. For investors and developers, it is also important to understand the changing relocation patterns, demo graphics and needs of home seekers. This includes young people, families, singles and seniors. Even for smaller projects or as part of their initial considera tions, investors and developers should focus more on the use of data, such as in-migration trends in terms of housing types, area sizes and migration patterns, to bet ter identify opportunities in specific areas. This is espe cially important in today’s market, where uncertainty is greater than before, and investors are reluctant to make decisions on an incomplete basis.

Migration data can influence investor and developer choices

Financial reasons 65+ yrs 50-64 yrs 41-49 yrs 31-40 yrs 26-30 yrs 18-25 yrs 12-17 yrs 6-11 yrs 0-5 yrs CASE CPH The fact that some young families are moving away from major towns and cities is not a new trend (so data tell us). Young families have a greater need for space when young children are added to the family. Not everyone has the finances to find a home in the city that meets Other reasons Family-related reasons Job- or education related reasons What prevented you from staying in Copenhagen?

Age distribution of people moving from Copenhagen

0102030405060

0% 10% 20% 30% 40% 50%

Note: Respondents were allowed to select more than one reason. Source: City of Copenhagen, Colliers

Source: City of Copenhagen, Colliers