Colliers Denmark Market Report 2025

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COLLIERS MARKET REPORT 2025

HOTEL INDUSTRIAL AND LOGISTICS RETAIL RESIDENTIAL KONTOR

GDP growth with the pharmaceutical industry as the main driver GDP growth is expected to drop from 2.5% in 2023 to 2.1% in 2024. Despite improvements in several parts of the Danish economy, Danmarks Nationalbank still expects a reduction in growth. This is due to a decline in service exports and only a slight increase in total con sumer spending, even though Danes’ purchasing power has improved significantly due to high wage increases. High interest rates are believed to have put a damper on consumption. However, the continued robust labour mar ket and an increase in real wages are expected to con tribute more to overall demand in the Danish economy in the coming years. GDP is expected to increase by 2.3% in 2025, driven mainly by large growth contributions from the pharmaceutical industry and the reopening of the Tyra gas field at the end of March 2024. Having accounted for around 90% of Danish gas production before its shut down in 2019, the reopened Tyra field is predicted to boost Danish GDP growth by 0.5 ppts in 2025. Employment continues to rise Danish employment levels have increased significantly in recent years. In 2019-2023 alone, employment increased by 230,000 people. The increase has continued into 2024, albeit at a slower pace. Around 45% of this increase is due to foreign nationals, including Ukrainian refugees. The slower rate of increase reflects lower demand for labour, as high wage increases have made labour more expensive compared to companies’ product prices and other production inputs, including energy and capital costs. Since the peak in 2022, the number of job adver tisements, the share of vacancies and companies’ reports of production constraints due to labour shortages have declined. Danmarks Nationalbank estimates that employment will increase by around 29,000 people from 2024 until year-end 2026.

Prospects of higher growth in Denmark relative to the eurozone

0% 2% 4% 6% 8%

-6% -4% -2%

16 17 18 19 20 21 22 23 E24 E25

Denmark

Eurozone

Note: Growth in real GDP (y/y). Source: Eurostat, Statistics Denmark, Danmarks Nationalbank, Danske Bank, Colliers

Sustained employment growth

3,300

12%

10%

3,200

8%

3,100

6%

3,000

4%

2,900

2%

2,800

16 17 18 19 20 21 22 23 E24 E25

Eurozone, unemployment rate (l.a.) Denmark, unemployment rate (l.a.) Denmark, number of employed (r.a.)

Note: Share of workforce that is unemployed, FTEs (l.a.) and number of employed (‘000) (r.a.). Source: Eurostat, Statistics Denmark, Danmarks Nationalbank, Danske Bank, Colliers