Colliers Denmark Market Report 2025

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RESIDENTIAL - COLLIERS MARKET REPORT 2025

HOTEL INDUSTRIAL AND LOGISTICS RETAIL RESIDENTIAL OFFICE

Now that we know who is leaving Copenhagen and Frederiksberg, it is also interesting to find out where they are moving to. The mapping of relocations in 2023 from Copenhagen and Frederiksberg shows that most movers (64%) are relocat ing to another dwelling in the Capital Region of Denmark, while 44% are settling around Copenhagen, including Tårnby and Dragør (together Greater Copenhagen). Most movers still want to live close to Copenhagen, while a smaller proportion move further away - typically to cities where it is possible to get a job and cheaper housing. Investors and developers have a particular interest in understanding such a migration pattern, especially as it has become more pronounced over time and therefore indicates an ongoing trend. In this context, it is important to understand how the Copenhagen and Frederiksberg residential market has developed. In recent years, both rental and owner-occupied property prices have seen a sharp increase. Mainly skyrocketing owner-occupied apartment prices combined with relatively high inter est rates have made the financial burden of owning sig nificantly higher than the burden of renting. Therefore, we are seeing mounting occupational demand for rental housing, putting upward pressure on market rents for rental apartments.

Esthers Have, Kolding

In Copenhagen and Frederiksberg, there are extremely limited opportunities for new residential construction in both the short and medium term. At the same time, the population is growing and we expect market rents to con tinue to rise. In our view, the lack of affordable housing in Copenhagen is the main reason we are experiencing the largest exodus from Copenhagen and Frederiksberg in recent times. We believe that this trend will have a knock-on effect on the neighbouring areas, which will experience increased demand and upward pressure on market rents. However, in Greater Copenhagen and other areas outside Copenhagen proper, there are gen erally plenty of opportunities for new supply, which may dampen increases in market rents in the long term. It is therefore not surprising that investment activity in the residential segment largely took place in Greater Copenhagen in 2024, with several leading investors acquir ing newly built residential rental properties. These trans actions included both single properties and portfolios of large residential rental newbuilds.

Migration from Copenhagen and Frederiksberg in 2023

In-migrants, no. 1

In-migrants, %

Region

Part of the country

Copenhagen environs, incl. Tårnby and Dragør North Zealand Bornholm

20,790 8,718 394

44% 19% 1% 9% 10%

Capital Region of Denmark

East Zealand West and South Zealand

4,211 4,881 2,130 1,471 2,575 581

Region Zealand

Region of Southern Denmark

Funen South Jutland

5% 3% 5% 1%

East Jutland West Jutland area

Central Denmark

North Denmark Region North Jutland

1,100

2%

Note: 1 Number of people who have moved out of Copenhagen and Frederiksberg. Source: Statistics Denmark, Colliers