Colliers Denmark Market Report 2025

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COLLIERS MARKET REPORT 2025

HOTEL INDUSTRIAL AND LOGISTICS RETAIL RESIDENTIAL KONTOR

Real wages have increased, but consumer spending is slow to pick up High wage increases coupled with a significant drop in inflation have brought real wages back to 2021 levels, i.e. the pre-inflationary period. However, this increase in real wages has not had a significant impact on con sumer spending, which is still held back by the interest rate increases of recent years. Based on expectations of a robust labour market, continued real wage growth and

less restrictive financial conditions, consumer spending is anticipated to increase by 1.0% in 2024 and 1.8% in 2025. The moderate increase in 2024, relative to the 1.4% increase in 2023, should be seen in light of sturdy growth in car consumption in late 2023, which was brought for ward due to higher registration tax on certain types of electric cars after the turn of the year.

Consumer spending projected to pick up in less restrictive interest rate environment

0% 2% 4% 6% 8%

-10% -8% -6% -4% -2%

16 Denmark

17

18

19

20

21

22

23

E24

E25

Eurozone

Note: Growth in real consumer spending (y/y). Source: Eurostat, Statistics Denmark, Danmarks Nationalbank, Danske Bank, Colliers

Danish real wages have caught up

100 102 104 106 108 110

94 96 98

16

17

18

19

20

21

22

23

E24

E25

Denmark

Eurozone

Note: Growth in real wages, index 100 = Q1 2016. Source: Oxford Economics, Colliers