Focus report Copenhagen - Colliers Denmark 2024

RESIDENTIAL - COLLIERS FOCUS REPORT COPENHAGEN 2024

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INDUSTRIAL/LOGISTICS RETAIL RESIDENTIAL OFFICE

neighbourhood will be the first in Copenhagen to be partially car-free.

next 5-10 years, involving some 1.5-2 million sq m space. An ideas competition has just been organised as the second of three phases in which the owners will collect suggestions on how the area can be further developed. The next phase is a structural plan competition, which will take place in autumn 2024. 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. Lynetteholmen Lynetteholm is a grand-scale landfill development that is intended to form an extension of Refshaleøen. Although still on the drawing board, the development has received broad political backing. 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 scheduled for 2035, and on completion the district is envisaged to accommodate as many as 35,000 residents. In addition, Lynetteholm is part of Copenhagen’s catalogue of actions on climate change in terms of rising sea levels.

Development activity is scheduled to start in 2025 at the latest, with completion taking place over an estimated 8- to 10-year period. 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 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

Typical yield requirements

RESIDENTIAL

2021

2022

2023

2024

CHANGE 2023-24

3.25%

3.00%

3.25%

3.75%

50 bps

Prime

Copenhagen K

3.75%

3.50%

3.75%

4.00%

25 bps

Secondary

3.75%

3.50%

3.75%

4.00%

25 bps

Prime

Copenhagen NV

4.25%

3.75%

4.00%

4.25%

25 bps

Secondary

3.75%

3.25%

3.50%

4.00%

50 bps

Prime

Frederiksberg

4.00%

3.50%

3.75%

4.25%

50 bps

Secondary

3.75%

3.25%

3.50%

4.13%

63 bps

Prime

Valby

4.25%

3.75%

4.00%

4.38%

38 bps

Secondary

Note: Net initial yields, new residential units of 75-80 sq m, ground-floor and penthouse units excepted, Copenhagen. Level in 2024 indicates Colliers' estimation at year-start. Source: Colliers