Newsletter_Q2_2018_UK

Newsletter Q2 2018

COPENHAGEN RANKED AMONG TOP CITIES IN THE WORLD FOR PROPERTY INVESTMENTS

A new analysis ranks Copenhagen as one of the top cities in the world in terms of investment intensity and growth momentum. The city owes its ranking partly to five years’ continued growth in overall transaction volumes in the Copenhagen investment property market, partly to the city’s ability to attract a steadily increasing number of foreign investments.

By Christopher Elgaard Jensen, Manager, Sadolin & Albæk, Research & Valuation.

Investors forced to innovative thinking in pursuit of returns Like in most other western hemisphere countries, a low interest rate level has become the new normal in Denmark. As a result, returns on investment assets have generally been driven down in the post-crisis years. This trend has made it more difficult for inve- stors to achieve returns that match their strategic goals and requirements.

caused many investors to zoom in on new sectors, segments or locations in their pursuit of the best risk-adjusted returns. More cities emerging on the property investment world map In the competition for the best risk-adjusted returns, several major cities, in particular those of northern Europe, stand out as especially attractive property investment destinations. Copenhagen is one of the cities in this strong league. In view of recent years’ dramatic surge in media attention on Denmark’

In this respect, the investment property market is by no means an exception, as yield compression has

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