Copenhagen Property Market Report 2020

Copenhagen Property Market Report 2020

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Retail market fundamentals are strong, supported by Danish household budgets in top shape: Consumer conƒdence and employment levels are high, wage growth is fair and home equities are mounting, with most families expecting their ƒnancial situation to improve in 12 months. Nevertheless, some parts of the retail market are prone to higher vacancy rates and have never been as polarised as today – both the investment and occupational markets. This is due to the ongoing transformation of the retail market, in some subsegments with quite a dramatic outcome. Well-established retail concepts and layouts must change to match new consumer trends and shopping patterns as well as a shift in consumer requirements. Trends such as convenience shopping, demographic changes, tourism growth, advancing e-commerce and the desire for retail experiences have left their mark on the retail landscape in Copenhagen and Denmark in recent years, and will continue to do so. Irrespective of mounting uncertainty, investors still pursue well-located, attractive properties. Virtually all market players today agree that physical shops will remain key to retailing – but the retail concept needs to be redeƒned and broadened. Retail market under pressure Detailmarkedet under pres Grundlaget for detailmarkedet er godt, for danskernes privatøkonomi er i topform: Både forbrugertilliden og beskæftigelsen er høj, lønningerne stiger pænt, boligformuerne vokser, og de ˜este familier forventer, at deres økonomi ser (endnu) bedre ud om et år. Alligevel er dele af detailmarkedet præget af højere tomgang og har aldrig været mere segmenteret – både på investerings- og lejermarkedet. Årsagen er, at detailmarkedet beƒnder sig i transformation, som i dele af detailbranchen er ganske voldsom. Velkendte detailhandelskoncepter og lokaletyper skal ændres for at leve op til nye forbrugs- og indkøbsmønstre samt til ændrede krav og behov hos forbrugerne. Tendenser som convenience, demograƒske ændringer, øget turisme, stigende nethandel og ønsker om oplevelser har de senere år præget – og vil fortsat præge – både det københavnske og danske detailmarked. Trods den stigende usikkerhed søger investorerne stadig efter velbeliggende, gode ejendomme. Stort set alle aktører har i dag den opfattelse, at fysiske butikker fortsat vil være vigtige for detailhandlen, men at butikskonceptet skal forstås i bredere forstand.

Retail transaction volume DKK billion 1.4

Share of total transaction volume 4

Transaction volume %

Share of foreign investors Transaction volume % 53

Based on total transaction volume, Greater Copenhagen. Source: Colliers