Colliers Denmark Market Report 2025

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COLLIERS MARKET REPORT 2025

HOTEL INDUSTRIAL AND LOGISTICS RETAIL RESIDENTIAL OFFICE

Why a commercial property price index?

The past two decades have seen an increased inflow of capital into invest ment property as real estate is increasingly seen as an attractive alternative to stocks and bonds.

In 2024, Greater Copenhagen investment properties experienced yield decompression but positive total returns due to operational improvements in terms of rental growth. While stocks and bonds are easily priced, investment properties are far more diverse products and

are rarely traded. However, the Colliers property price index provides a solution to this challenge by using data that includes both transactions and property valuations as a substitute for actual transactions.

Commercial property offers attractive risk-adjusted returns

2024

2015-2024

Return

Mean return

Risk

Commercial property, Greater Copenhagen 1

5.15%

8.38%

5.00%

S&P Denmark, government bonds

3.29%

0.04%

7.32%

MSCI Denmark, stocks

-12.6%

13.8%

23.1%

Note: Average total return and risk on commercial property, bonds and stocks. 1 Please note that the Colliers commercial property price index is based on market observations made throughout the entire year, and therefore the calculated return indicates a mean value for the year compared to the mean value for the previous year. Source: S&P Global, MSCI, Colliers

Model and approach

For both the Colliers property price index (capital growth) and the net initial yield calculations, we have used a hedonic multi ple regression analysis based on empirical data collected from more than 6,700 property sales and property valuations in the

Greater Copenhagen area since 1985, all involving Colliers (pre 2018, Sadolin & Albæk). The model covers all types of com mercial property, where individ ually fixed prices are applied for the various property character istics, mainly location, use, state

and condition/quality, suitabil ity/rationality and economies of scale, as a corrective measure to account for the differences between individual properties.

Victor Staun Jensen Associate I Valuation & Advisory victor.jensen@colliers.com

Kristian Axel Stokholm Senior Director I Capital Markets kristianaxel.nielsen@colliers.com