Market Report 2022

6

Colliers Market Report 2022

Record-high transaction volume in 2021

COVID-19 appears to have almost completely loosened its grip on the investment property market, with 2021 characterised by massive investment demand. The outlook is for sustained strong activity in 2022. In the wake of the short-lived slowdown in the investment market in 2020, we saw a kind of ketchup effect. Sustained massive placement requirements in the marketplace along with the fact that foreign investors are increasingly becoming aware of Denmark as a stable investment destination made 2021 a busy year. Although properties across several segments trade at record-low yield requirements, the supply of core properties remains limited, however, forcing several investors to zoom in on alternative options, including value-add property and development opportunities. Prospects of rising infla tion in addition to a rising yield curve may curb a future drop in yield requirements on the most attractive properties, with yields likely tracing a more stable trend.

Transaction volume hit an all-time high in Denmark in 2021

120

100

80

60

40

20

0

12

13

14

15

16

17

18

19

20

21

Greater Copenhagen

Denmark, excluding Greater Copenhagen

Note : Transaction volume (DKK billion), investment property, Denmark, 2012-2021. Source: Colliers