Colliers Denmark Market Report 2025

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COLLIERS MARKET REPORT 2025

HOTEL INDUSTRIAL AND LOGISTICS RETAIL RESIDENTIAL KONTOR

Monetary policy is being eased Between July 2022 and September 2023, the ECB raised the key interest rate 10 times by 0.25-0.75 ppts at a time to curb high inflation. Inflation has now fallen signifi cantly in Denmark and the eurozone. The ECB has there fore moved towards a more accommodative monetary policy with interest rate cuts in June, September, October and December 2024. In November 2024, CIBOR (3M) is at 2.89%, while the 10-year Danish government bond yield stands at 2.07%. According to Danmarks Nationalbank, Danish short-term market interest rates are anticipated to drop to approx. 2% by year-end 2026.

increase to 2.1% in 2025. This is mainly due to the high wage increases of recent years, which are expected to drive up consumer prices, especially prices for services. In addition, energy prices are not expected to come fur ther down, which means that the negative inflationary contributions from this will disappear. If wage growth slows as expected during 2025, inflation is expected to stabilise around the ECB’s long-term target of 2%. Denmark has favourable framework conditions The conditions for doing business in Denmark remain extremely favourable compared to the rest of the world. TMF Group’s ‘Global Business Complexity Index 2024’ ranks Denmark third, only surpassed by Curacao and the Cayman Islands. Denmark is therefore considered to be one of the countries with the lowest complexity in terms of setting up and running a business. Broadly speaking, favourable business conditions, a stable political environ ment and a robust economy mean that many interna tional investors continue to see Denmark as a safe haven for their investments.

Inflation has come down and is expected to stabilise

Inflation in Denmark has slowed considerably since it peaked in October 2022 with an annual increase in the consumer price index of 10.1%. This decline continued into 2024, with the average annual inflation rate at 1.4% compared to 3.3% in 2023. Danmarks Nationalbank pre dicts that the decline in inflation will be replaced by an

Interest rates have peaked in less restrictive monetary environment

Inflation projected to stabilise around the EU’s long-term target rate

10%

-1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%

8%

6%

4%

2%

0%

-2%

16 17 18 19 20 21 22 23 24

16 17 18 19 20 21 22 23 E24 E25

Eurozone (3M) Denmark (3M)

Eurozone (10-year gov. bond) Denmark (10-year gov. bond)

Denmark

Eurozone

Note: EURIBOR and CIBOR short-term (3M) interest rates vs. 10-year government yields. Source: Eurostat, Colliers

Note: Annual inflation. For Denmark, based on the consumer price index, for the eurozone, based on the EU’ harmonised index of consumer prices, HICP. Source: Oxford Economics, Colliers

Martin Lerche Senior Associate I Valuation & Advisory martin.lerche@colliers.com

Gregers Nytoft Rasmussen Director and Head of Research gregers.nytoft@colliers.com