Focus report Copenhagen - Colliers Denmark 2024

RESIDENTIAL - COLLIERS FOCUS REPORT COPENHAGEN 2024

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Prospects for rising rental property prices

INDUSTRIAL/LOGISTICS RETAIL RESIDENTIAL OFFICE

Copenhagen and the surrounding municipalities are currently characterised by a rock-solid housing market where demand exceeds supply despite the construction boom of recent years. Both ownership and rental property prices have shown an upward arrow in 2023, and with the prospect of a slowdown in construction activity and a sustained high owner-occu pied housing burden, it is reasonable to expect further increases in rental property prices.

Copenhagen has seen a sustained demand for housing due to population growth, with the population of Copen hagen increasing by 16.1% between 2013 and 2023. This underpins Copenhagen's position as a highly attractive city to live in, particularly due to the city's well-developed infrastructure, rich cultural offerings and good job and education opportunities. Rent levels in Copenhagen have been rising for several years, which was also the case in 2023. In some places, however, they have reached a level where more people cannot or do not want to join in. Especially young families with a greater need for space may find the lower rent

levels in the suburbs more appealing. For this reason, rent increases in Copenhagen have also had a knock-on effect on neighbouring municipalities, which have also seen rent increases for both prime and secondary properties. Slowing construction activity In 2023, the trend from 2022 of rising construction and financing costs continued. Despite the slowdown in construction activity, no decrease in construction costs has been observed, contrary to expectations. This is partly due to rising wages, but also Novo Nordisk's billion kroner investments in various construction projects have helped to keep construction costs at a high level.