Copenhagen Property Market Report 2020

Solid Danish property market

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Copenhagen Property Market Report 2020

Decline in transaction volume, but capital abundance Fald i transaktioner trods masser af kapital

For the second year running, transaction volume in the Danish property market dropped, in 2019 standing at about DKK 57bn, down from DKK 71bn in 2018. This decline does not reflect a lack in demand, however, as we continue to see massive domestic and foreign investor demand. In fact, competition has intensified for most property types on account of sustained low interest rates and substantial placement requirements in the investor community. More than anything, the slowdown in transaction activity therefore reflects limited property supply. The fact that new international investors continue to enter the Danish market serves to underpin the scale of placement requirements. According to a recent poll by EjendomsWatch, domestic pension funds are seeking to increase their property exposure by DKK 60bn in total in the years ahead.

For andet år i træk faldt omfanget af transaktioner på det danske ejendomsmarked og udgjorde i 2019 ca. 57 mia. kr. mod 71 mia. kr. i 2018. Faldet er dog ikke udtryk for manglende efterspørgsel, og vi kan fortsat registrere massiv interesse fra både danske og udenlandske investorer. Tværtimod er der blevet mere intens konkurrence om de fleste typer ejendomme i kraft af et fortsat meget lavt renteniveau og et stort placeringsbehov blandt investorerne. Det mere afdæmpede omfang af handler afspejler derimod i høj grad det begrænsede udbud af ejendomme. Det store placeringsbehov understøttes blandt andet af en fortsat tilgang af nye internationale investorer. Desuden viser en nylig rundspørge foretaget af EjendomsWatch, at danske pensionskasser ønsker at øge deres investeringer i ejendomme med samlet omkring 60 mia. kr. inden for de kommende år.

Renewed slight decline in transaction volume despite capital abundance

TRANSACTION VOLUME: The decline in transaction volume is not due to lack of investor demand but rather a mismatch between sell-side and buy-side price expectations.

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Greater Copenhagen

Rest of Denmark

Note: Transaction volume, Denmark (DKK billion). Source: Colliers