MR 2018

84

Copenhagen Property Market Report 2018

Continued increase in student uptake at Aarhus University

Disparities between different districts Like Copenhagen, Aarhus features various districts with distinctive characteristics and sub-districts. However, it is important to remember that Aarhus and Copenhagen differ in terms of site area, with the City of Aarhus in fact taking up five times more land than the City of Copenhagen and the City of Frederiksberg combined. As a result, the population density is much lower in Aarhus. Aarhus is encircled by ring roads, which largely define the city’s residential districts, while the innermost ring road O1 largely defines the city centre, DK-8000 Aarhus C, characterised by the highest population density and a predominance of residential high-rise buildings. In addition, this district is known for its landmarks and attractions, including the ARoS art museum, the vibrant café life along the stream of Aarhus Å, the high street and the university campus. Today, the areas between ring road O1 and ring road O2 predominantly feature open low-rise buildings, with former commercial estates being converted into high-rise/high- density housing, e.g. at Søren Frichs Vej, Katrinebjergvej and Bryggervej. Just outside ring road O2 lie multiple large-scale business districts, such as the Skejby office area, the new university hospital and minor urban districts of Aarhus. The population boom has caused “inside-out” urban development in the sense that the city is fanning out to previously non-residential districts, bringing with it the high building density and tower blocks characteristic of inner city districts. Different development paces Housing in the Aarhus city centre commands the highest prices, and only a few kilometres outside the city centre and ring road O1, the levels are lower. For instance, in Viby J the ownership prices of one-family and terraced houses are on average 50% below the prices fetched in Aarhus C. Despite the spread in housing prices in the City of Aarhus, the surrounding municipalities continue to see a net migration from Aarhus thanks to their lower price levels and development opportunities in terms of open low-rise newbuilding. In addition, urban districts outside the City of Aarhus, e.g. Hørning and Hinnerup, benefit from a railway link to central Aarhus. As a result, the Aarhus property market is developing at two different paces, with brisk activity in central Aarhus and environs where housing demand and prices are high and with moderate activity in more peripheral locations. However, activity in the city centre to some extent spills over to the neighbouring districts, exactly like in Copenhagen, where favourable trends feed through to the surrounding municipalities, partially due to pricing constraints in the inner-city areas. Understanding today’s demand is key It is important to bear in mind what drives the demand for housing in the city centre and various districts of Aarhus.

4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000

2011

2015

2013

2017

2007

2009

Source: Aarhus University

Broadly speaking, Aarhus is attracting new residents from most other Danish municipalities. In 2014-2016, the City of Aarhus only saw an outflow of residents to Greater Copenhagen as well as surrounding and nearby municipalities, including Skanderborg, Horsens, Favrskov, Odder, Randers and Syddjurs. In 2016, the 24-28-year-olds and the 0-2-year-olds were especially prone to move, indicating that in particular young graduate families with infants and small children tend to leave the City of Aarhus.