Focus report Aarhus - Colliers Denmark 2024

RESIDENTIAL - COLLIERS FOCUS REPORT AARHUS 2024

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New build Vejlby: 6.75%

Former Gasa site: 16.50%

Bindesbøll Byen: 5.00%

2021-2023 2018-2020 2015-2017 Construction years

New build Christiansbjerg: 5.25%

New build Gellerup: 12.00%

Ceresbyen: 3.15%

Aarhus K: 3.50%

Åbyen: 10.85%

New build at Musikhuset: 2.50%

Note: Vacancy rates (%) in selected city districts in the City of Aarhus. Source: BBR, Colliers

Students make up the majority of tenants in the munic ipality, and here, optimally designed two-room apart ments located near educational institutions or in the city centre are especially sought after. For young people, the financial aspect plays a crucial role, as by sharing a well-appointed two-room apartment instead of renting a bedsit or one-bedroom apartment, they can reduce their rental costs, which, all other things being equal, increases their disposable income. The current increase in vacancy is expected to be a short lived phenomenon, as market conditions have drastically deteriorated over the past two years, so the pipeline of newbuilding is now more moderate. On the other hand, demand is still increasing, which was especially the case in 2023 when the municipality grew by almost 6,000 new inhabitants - the largest population increase in the munic ipality to date. In consequence, the balance between sup

ply and demand is expected to approach equilibrium in the coming years - and should newbuilding fail to pick up, even a potential undersupply in the longer term. The potential future undersupply is described in the Colliers article “Aarhus may be heading towards under supply of apartments”. Read the article at colliers.com/ en-dk/etageboliger-aarhus Location, location, location Given a wider range of options in the rental housing market, tenants enjoy significantly more freedom when deciding on their future home. This means that funda mental characteristics such as location become key to the success of residential projects. To be competitive in the rental property market and attract tenants, land lords must therefore continue to meet the needs of ten ants. However, the most standardised properties on the