Market Report 2022

44

Residential - Colliers Market Report 2022

As 2021 wore on, residential property became increasingly attrac tive. While international investors are in pursuit of secure invest ments, competition and prices have sky-rocketed to an all-time high. At the same time, all parts of the country are seeing brisk new construction activity to accommodate Denmark’s ever-grow ing population, forecast to exceed the six million mark in 2030. Population growth in red-hot residential market The Danish population is increasing, evident mainly in major towns and cities where an increasing urbanisation trend, a birth-rate surplus and high net immigration in several locations are driving up growth rates to levels above the national average. Mainly regional growth cities are experiencing a strong net inflow of inhabitants, driven by a broader job offering, better educational institutions and a generally wider range of opportunities. In recent years, the trend has slowed as city living has become much more expensive. For instance, Copenhagen has seen a net outflow of some 1,000 inhabitants annually since 2016, in 2020 rising to just shy of 5,000. Not only migration patterns are changing these years: In various age groups too, we are seeing struc tural changes in demographic composition which may shape future housing demand. Like the popula tion of most other Western countries, the Danish population has a higher average life expectancy, and we are going to see a sharp rise in the number of senior citizens in the years ahead. The same growth rates do not apply to the younger generations, although these age groups were booming for years in the past. Here, we see fewer inhabitants per generation and dwindling birth rates.