Focus Report Copenhagen - Colliers Denmark 2025

RETAIL - COLLIERS FOCUS REPORT COPENHAGEN 2025

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INDUSTRIAL AND LOGISTICS RETAIL RESIDENTIAL OFFICE

Cautious optimism despite uncertainty

The Danish retail market, even in Copenhagen, is still characterised by uncertainty after a few years of high interest rates and inflation, geopolitical turbulence, and declining real wage growth. However, Danish consumers now have more money in their hands.

In recent years, the retail market has faced challenges, also in Copenhagen. Rising inflation has increased retail store costs, while rising interest rates and falling real wages have eroded the purchasing power of Danes. Nevertheless, 2024 saw renewed real wage growth after a year of higher wage growth. Slight decline in physical retail Having plummeted during the coronavirus pandemic in 2020-2021, retail store sales of classic shopping goods returned to pre-pandemic levels in 2022. However, from 2023 to 2024, physical retail saw a slight decrease of around 1% in sales. Traditional stores are still struggling,

but the outlook has brightened. Compared to last year, consumers themselves are today more positive about their financial situation a year from now. As a result of several years of consumer restraint and rising costs, retail tenants have experienced an increased burden on turnover. Retail vacancies increased in Copen hagen as 2024 wore on, and landlords are expected to be required to offer more flexible terms to attract and retain the most attractive tenants.

Less established retail areas bear the brunt of retail vacancies, as they often lack strong anchor tenants and do

Renewed real wage growth

10%

0% 2% 4% 6% 8%

-6% -4% -2%

17

18

19

20

21

22

23

24

Wage growth

Inflation Real wages

Source: Statistics Denmark, Colliers