Colliers Market Report Denmark 2023

Residential - Colliers Market Report 2023

44

Residential summary

Transaction volume DKKbn

33

22

Supported by sustained strong demand for rental housing, vacancy rates are moderate despite brisk newbuilding, mainly within dwellings tar geting specific user groups. Transaction volumes fall short of recent years’ record highs, but capi tal remains abundant in the market. Rising interest rate levels andmacroeconomic uncertainty have widened the gap between buyside and sellside yield require ments, and, by extension, price expectations. At the same time, as interest rates move higher, it becomes more difficult to pro cure the same LTVs as in the past, and buyers and residential developers alike are increasingly holding off. The pipeline of new development schemes is expected to slow. This may have a favourable effect on rental growth in the residential market, which continues to benefit from population growth.

Denmark

Gt. Copenhagen

Share of total transaction volume

39 % Denmark 45 % Gt. Copenhagen

Deteriorating financing options affect residential yields

Share of foreign investors

6%

5%

4%

3%

2%

58 % Denmark

64 % Gt. Copenhagen

1%

0%

14

15

16

17

18

19

20

21

22

23

Prime

Secondary

Note: Based on transaction volume for residential in 2022, Denmark. Source : Colliers

Note : Net initial yields, residential, Copenhagen. Source : Colliers