Focus Report Copenhagen - Colliers Denmark 2025

RESIDENTIAL - COLLIERS FOCUS REPORT COPENHAGEN 2025

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INDUSTRIAL AND LOGISTICS RETAIL RESIDENTIAL OFFICE

developed. The next phase is a structural plan compe tition, starting in 2025. So far, five possible teams have been named, including Arkitema, Cobe, Henning Larsen Architects, Tegnestuen Vandkunsten and Tredje Natur. Supported by the planned infrastructure projects and the area’s city proximity, the ambition is to create a new and modern city district that retains its industrial identity by preserving some of the historical and iconic shipyard buildings. Lynetteholm Forming an extension of Refshaleøen, Lynetteholm is a grand-scale landfill development in its early stages having obtained broad political approval. When completed, Lynetteholm will be a brand-new 2 million sq m city district in the Sound, connecting Nordhavn and the motorway grid on Amager via the above-mentioned eastern ring road. In addition, the district is to be linked to the Copenhagen Metro. Construction start is sche duled for 2035, and on completion the district is envi saged to accommodate as many as 35,000 residents and just as many workplaces. In 2025, the work proceeds to build a perimeter of rock dams around Lynetteholm to flood proof Copenhagen. The excavation work on the seabed is scheduled for completion in 2025.

Refshaleøen In the past, the islet of Refshaleøen on the central Copen hagen waterfront was home to one of the world’s largest shipyards, B&W. When B&W went bankrupt in 1996, it marked the beginning of a slow transformation of the entire area. Today, Refshaleøen is an emerging city district with housing, offices, grocery shops, restaurants and art galleries, etc. It still retains some markings of its industrial past, with former facilities being preserved and repurposed for public-oriented uses. In the current municipal plan, the area is defined as a perspective area, where full urban development is planned to commence in 2031. This is because the area has limited connection to the existing road network and public transport in Copenhagen. However, the prospect of Lynetteholmen coming into play, including plans for the eastern ring road, Østlig Ringvej, and a new metro line, may accelerate urban development plans for the area. Further urban development of the area is expected to begin within the next 5-10 years, involving some 1.5-2 million sq m space. In early 2024, an ideas competition took place as the second of three phases in which the owners collect suggestions on how the area can be further

Typical residential yield requirements

RESIDENTIAL

2022

2023

2024

2025

CHANGE 2024-25

3.00%

3.25%

3.75%

3.88%

12.5 bps

Prime

Copenhagen K

3.50%

3.75%

4.00%

4.00%

0.0 bps

Secondary

3.50%

3.75%

4.00%

4.13%

12.5 bps

Prime

Copenhagen NV

3.75%

4.00%

4.25%

4.38%

12.5 bps

Secondary

3.25%

3.50%

4.00%

4.00%

0.0 bps

Prime

Frederiksberg

3.50%

3.75%

4.25%

4.25%

0.0 bps

Secondary

3.25%

3.50%

4.13%

4.13%

0.0 bps

Prime

Valby

3.75%

4.00%

4.38%

4.25%

-12.5 bps

Secondary

Note: Net initial yields, new residential units of 75-80 sq m, ground-floor and penthouse units excepted, Copenhagen. Level in 2025 indicates Colliers' estimation at year-start. Source: Colliers