Colliers Market Report Denmark 2023

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Residential - Colliers Market Report 2023

In previous years, residential properties were snapped up fast, but this changed when interest rates moved higher in 2022. Buyers upped their yield requirements, and financing require ments tightened, for investors and for developers. However, the change in market conditions supports the rental housing market, which tends to gain appeal in times of uncertainty and a higher ownership housing burden, on the back of an expected slowdown in newbuilding and a rise in population figures. The fundamental driver of the residential market is the forecast of sustained population growth in Denmark. As of year-end 2022, Denmark’s three largest cities had seen slightly below-average growth rates, but population growth remains concentrated around major towns and cities, with mainly five growth areas: 1. Greater Copenhagen and municipalities of Zealand within reasonable commuting distance from Copenhagen 2. Aarhus and neighbouring municipalities, e.g. Horsens, Odder, Silkeborg and Skanderborg 3. Odense 4. Aalborg (including the Municipality of Rebild) 5. The Triangle Region (represented by Vejle and Middelfart). These growth areas have in common thriving private- and public-sector business communities, educational programmes, and hospitals, all of which enjoy easy accessibility. Sustained population growth in major cities