Colliers Denmark Market Report 2025

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COLLIERS MARKET REPORT 2025

HOTEL INDUSTRIAL AND LOGISTICS RETAIL RESIDENTIAL OFFICE

RESIDENTIAL REMAINS THE LARGEST SEGMENT

residential segment stood out as the most sought-af ter segment among investors, accounting for 62% of the transaction volume in the quarter. Especially Greater Copenhagen residential investments were in demand due to expectations of continued growth in market rents. Major transactions included the residential prop erties Rødovre Port in Rødovre and Lyskilden in Herlev. The office segment, however, remained challenged and contributed only 14% of the total transaction volume, which is significantly lower than the average of approx. 23% in 2013-2023. In contrast, the industrial and logistics segment equalled its record from 2023 by again account ing for 25% of the total volume, confirming its position as one of the most sought-after segments. This develop ment is driven by strong supply and demand dynamics and expectations of further rent increases in prime loca tions. One example is Brunswick’s sale of a portfolio of 14 light industrial properties in Greater Copenhagen to Blackstone/Mileway. With the positive momentum in the last quarter of the year, the prospects are bright for 2025. Lower mar ket interest rates and greater predictability can stimu late stable and healthy activity in the transaction mar ket. Residential as well as industrial and logistics are expected to remain the leading segments, while office is expected to see a gradual improvement in demand after an extremely challenging year. International investors were selective but made a strong comeback at the end of 2024 In 2024, international investors accounted for 39% of the total transaction volume in the Danish property market. However, an analysis of their activity across segments shows that they have been selective. In the office market in particular, international investors have remained on the sidelines, accounting for just 10% of the transaction volume, compared to 31% in the resi dential property market and 66% in the industrial and logistics market. A closer analysis of the year’s transactions shows that international investors have gradually increased their activity during the year. In the first six months, 69% of investors were domestic and 31% international, while in the final six months, the distribution changed to 55% domestic and 45% international.

14 % Office 50 % Residential 9 % Retail 25 % I&L

1 % Hotel 1 % Other

INTERNATIONAL INVESTORS SELECTIVE IN 2024

61 % DOMESTIC

39 % INTERNATIONAL

VALUE-ADD SHARE UP FROM 21% IN 2023

57 % Core 29 % Value-add 6 % Opportunistic 8 % User

Note: Total transaction volume 2024, Denmark, by segment, investor origins and risk profile. Source: Erhvervsmæglernes Branchedata, Colliers

This shift reflects a renewed appetite for investment among foreign investors. As inflation and fears of an overheating economy have been replaced by falling market interest rates and a stable economy, there is rea son for optimism. International investors are therefore expected to become active again in the Danish prop erty market in 2025, as Denmark is often seen as a safe haven for investment.