Colliers Denmark Market Report 2025

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INDUSTRIAL AND LOGISTICS - COLLIERS MARKET REPORT 2025

The Fehmarnbelt link gradually moving closer About two thirds of the total freight transport to, from and through Denmark consists of road freight transport. The strong Danish road network with good north-south and east-west connections plays a key role, and it is rela tively easy to move goods around Denmark. Although it is primarily domestic goods that are transported, a sub stantial proportion of road freight crosses the Danish German border. This puts pressure on motorway con nections from the border up to the Triangle Region and from the Triangle Region eastwards across Funen and back. Construction work on the Fehmarnbelt link between Denmark and Germany is underway and the 18 km long tunnel with motorway and railway is scheduled for com missioning in 2029. It is one of the largest infrastructure projects in Europe and will open new and efficient trans port options between the two countries. The Fehmarnbelt link will give Denmark a stronger position as a central hub for freight traffic in Northern Europe, with industry players expecting the link to cause a redirection of some freight transport in Denmark. Although it is still too early to comment on the effects, our current expectation is that the so-called south corri dor from Køge down to Lolland-Falster may become sig nificantly more attractive at the expense of parts of the Triangle Region. We continue to believe that the Triangle Region will play a vital role as a logistics centre in Denmark, but the Fehmarnbelt link may shift demand to new areas. Considering new construction projects such as the new Storstrøm Bridge, we recommend investors and users to follow developments closely in the coming years.

of Q3 2024, measured on a year-on-year basis. Among other things, Germany is affected by the fact that his torical growth engines and large employers such as the automotive industry are experiencing declining demand and rising costs. This has resulted in factory closures and layoffs, etc. This is affecting the German as well as the European market and could trigger further downsizing and lower demand for freight transport, which could ulti mately affect Danish companies. On the other side of the Atlantic, Donald Trump won the US presidential election in November 2024. Among other things, Donald Trump campaigned on protecting US domestic production by imposing punitive tariffs on a wide range of foreign goods. It is still uncertain how high and extensive the tariffs will end up being, but they could have negative consequences for European and thus Danish exports to the US. We do not see this as a risk to market activity in the short term, but if the slowdown in the European economy takes hold, it could threaten activity in the Danish market in the medium term.

Photos: Femern A/S photo archives