Focus report Copenhagen - Colliers Denmark 2024

RESIDENTIAL - COLLIERS FOCUS REPORT COPENHAGEN 2024

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Investors have changed their geographical focus

In 2023, the Danish investment market was characterised by great unrest, reflected also in residential property transactions in Copenhagen, which were significantly below the volume in 2022. Whereas the transaction volume for residential rental properties in Denmark as a whole dropped by approx. 45% from 2022 to 2023, the corresponding volume dropped by approx. 60% in Greater Copenhagen. Before the war broke out in Ukraine, and before the period of rising interest rates, higher inflation and signif icantly rising construction costs, several international core investors had shifted their geographical focus from Copenhagen proper to Greater Copenhagen. However, as a result of the crisis, most core investors have now

returned to their original area of interest, focusing on well-located properties in Copenhagen proper. This is clearly reflected in some of the largest transactions in 2023, including CapMan's acquisition of Køhlers Have in Copenhagen's Sydhavn district and Quantum Immobi lien's acquisition of Beckmanns Tårn and Vilhelm Hus in the Carlsberg City District. Activity in the residential property market peaked in the final months of 2023. Residential property transactions are expected to pick up as buyers and sellers are now estimated to be better aligned than in most of 2023. In 2024, we expect demand to continue to focus on standing properties in attractive locations in Greater Copenhagen, especially in Copenhagen proper.

2%

Realised selling prices

26%

11%

Units for sale

Laydays

Note: Development between Q3 2022 and Q3 2023, owner-occupied apartments, Greater Copenhagen. Source: Finans Danmark, Colliers