Newsletter_Q2_2018_UK

Newsletter Q2 2018

Rent hikes relatively higher in secondary Copenhagen locations

90 100 110 120 130 140 150 160 170 180 190 200

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Primær markedsleje

Vanløse

Valby

Note: Rental growth per sqm in selected Copenhagen districts, index 100 = 2009 Source: Sadolin & Albæk

for first-class rental housing, the prime market, is subject to different demand dynamics. In this market, flexibility rather than need is the market driver, but changing price levels may well force tenants to shift to the ownership market. Housing burden is therefore a less important parameter in the secondary market as the alternative in the ownership housing market is beyond the realm of

financial possibility – that is, provided they want to continue to live in Greater Copenhagen.

When comparing the pace of rent increases in various Copenhagen districts after the property market bottomed out in 2009, it becomes clear that the gap between the rents in prime and secondary locations is narrowing. Over the past three years in

Price hikes relatively higher on small Copenhagen flats

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<60 sqm

60-90 sqm

>90 sqm

Note: Price per sqm space, index 100 = 2009 Source: The Knowledge Centre for Housing Economics (Boligøkonomisk Videncenter)

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