Market Report 2022

42

Residential - Colliers Market Report 2022

Residential summary

Transaction volume DKKbn

59

32

Investor demand for residential property has been near-insatiable during the pandemic, just as demand has increased for ownership and rental housing alike, with the home becoming a focal point during lockdowns. Demand has stimulated newbuilding mainly in the largest cities but also in several large provincial towns. However, rising con struction costs may dampen construction activity longer term. Following the government intervention in 2020, cost-regulated properties are now back on investors’ wish list as are regional growth cities, offering investors higher yields than Copenhagen and Aarhus, where residential yields are at an all-time low.

Gt. Copenhagen Denmark

Share of total transaction volume

56% Denmark

55% Gt. Copenhagen

Prime residential yields at all-time low

Share of foreign investors

6%

5%

56% Denmark

4%

3%

2%

64% Gt. Copenhagen

1%

0%

13

14

15

16

17

18

19

20

21

22

Prime

Secondary

Note: Based on transaction volume for residential in 2021, Denmark. Source: Colliers

Note : Net initial yields, residential, Copenhagen. Sourc e : Colliers