Market Report 2022

50

Residential - Colliers Market Report 2022

Teglbakken, Nærheden. Visualisation

Is residential demand changing? The coronavirus pandemic has changed the way most of us view our home, which provided the backdrop for vir tually all everyday activities during the lockdowns. On this account, the population is placing higher demands on the flexibility and size of their home – impacting res idential demand. In early 2020, the Copenhagen residen tial market for large owner-occupied and rental units was sluggish, characterised by relatively long re-sale periods and stagnant rent levels, but today the picture has funda mentally changed. In relative terms, the drop in vacancy rates has been most pronounced in large-scale dwellings since the outbreak of COVID-19. This applies not only to Copenhagen, but to most major Danish towns and cities, including Aarhus, Odense, and Aalborg. Although the pandemic has yet to loosen its grip, the home as a place to live and undertake activities is currently undergoing a paradigm shift. Home design, focus on a home office and living space along with geographical loca tion are some of the elements that have become increas ingly important. Although the wish for a home office and more space in general are contributing factors driving res idential demand, we have yet to see their clear effect as the coronavirus pandemic is still upon us. Whether or not residential demand will rebound to pre-pandemic level remains to be seen. However, there is broad consensus that working from home will, all other things being equal, play a more important role than in the past. In addition, the high net outflow of residents from Copenhagen potentially

indicates a shift in location preferences but could also be explained by the fact that some Copenhageners have cho sen to move forward relocation plans due to the pandemic. In this respect too, it is unclear how preferences will change over time, if at all. At any rate, the fallout margin is wide, opening for new opportunities, but also higher risk, when launching new developments.