Market Report 2022

Colliers Market Report 2022

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Hotel Industri & logistik Detail Bolig Kontor I strial/logistics R Residential Of f ice

Alternative solution to shortage of student housing One of the more established niche products in the market is housing targeting students. Every year, major Danish towns and cities see an influx of international and domestic students, trig gering demand for student housing. Since 2010, the student count in Denmark’s four largest university cities (Copenhagen, Aarhus, Odense and Aalborg) has increased by approx 37,000 new students. By comparison, the supply of student housing has only increased by approx 6,900 units in the same period. The shortage is most evident in Copenhagen where chaotic scenes play out every year at term start when new students hunt for a place to live. According to a Colliers’ analysis of the type of housing inhab ited by students in Copenhagen and Frederiksberg, only one in ten students lived in student housing in 2019. This picture has

remained largely unchanged since 2010, with the same trend applying to students that reside in an ordinary small apartment (up to 50 sq m). Instead, we have seen an increase in the share of students that take lodgings in large apartments. Due to the very low availability of rental units in the total stock of student housing, non-profit housing and small ordi nary apartments, sharing-friendly apartments have become the answer to the housing demand of many students. Moving patterns indicate this to be driven more by necessity than want, due to a lack of alternatives. If this is the case, it sug gests sustained strong demand for student housing units as soon as they come on the market. This also represents a latent demand that is difficult to quantify, building on top of the ranks of students living at home with their parents in Copenhagen, or in accommodation outside the city, but who would prefer a home of their own in Copenhagen.

Dramatic increase in the supply of large flats since 2010

75-99 sq m

<50 sq m

50-74 sq m

+100 sq m

138 141

48 %

100

89

74

33 %

58

41 44

10 %

9 %

2010

2021

2010

2021

2010

2021

2010

2021

Share of new housing, 2010-2021

Note: Number of units (‘000), in Copenhagen, including Frederiksberg. Student hall accommodation included in <50 sq m category. Source: Statistics Denmark