Copenhagen Property Market Report 2020

Solid Danish property market

9

Copenhagen Property Market Report 2020

Residential assets remain the most coveted

Core assets head the field

41% Residential 35% Office 9% Industry/logistics

64% Core 29% Value-add 2% Opportunistic 5% User

6% Hotel 5% Retail 4% Other

Note: Breakdown of transaction volume by asset type. Rounded figures. Transaction volume, Denmark. Source: Colliers

Note: Breakdown of transaction volume by investment type. Rounded figures. Transaction volume, Denmark. Source: Colliers

Continued strong foreign presence For several years, Denmark has been a popular investment market with mainly Swedish property companies and German pension funds, most recently joined by investors from South Korea and Japan. Foreign investors perceive Denmark as a safe haven thanks to its stable economy, stable currency and stable political system. Moreover, the property market offers low transactions costs, favourable mortgage terms and attractive return-to-risk ratios. In 2019, foreign investors accounted for 52% of total transaction volume. This followed recent years’ trend towards a stronger predominance of foreign investors, a trend we believe will continue as we expect several new foreign investors to enter the Danish market. In 2019, seven of top-ten transactions involved foreign investors on the buyside, among them Swedish Klövern, acquiring Kalvebod Brygge 32 at a record-low yield of approx 4.00%, and Norwegian KLP, acquiring DeloitteHuset at a yield of about 3.60%. Swedish Niam accounted for the biggest transaction of the year, acquiring the Copenhagen Towers complex in the district of Ørestad, at approx DKK 2.3bn. A few hundred metres further on, French AXA closed the year’s biggest residential acquisition – at a price of DKK 1.3bn.

Fortsat mange udlændinge Gennem flere år har Danmark været et populært sted at investere for især svenske ejendomsselskaber og tyske pensionskasser, og senest er investorer fra Sydkorea og Japan kommet til. De udenlandske investorer betragter Danmark som en sikker havn med stabil økonomi, stabil valuta og stabilt politisk system. Samtidig er ejendomsmarkedet præget af lave handelsomkostninger, gode lånevilkår og attraktive afkast i forhold til risikoen. 2019 stod udenlandske investorer for 52% af værdien af de samlede transaktioner. Dermed fortsatte de senere års udvikling med en større udenlandsk andel, og udviklingen forventer vi vil fortsætte, da vi venter at se flere nye investorer fra udlandet. Blandt de ti største transaktioner i 2019 var udlændinge involveret som købere i de syv. Blandt dem var svenske Klöverns køb af Kalvebod Brygge 32 til et rekordlavt afkast på omtrent 4,00% og norske KLP’s overtagelse af DeloitteHuset til et afkast på ca. 3,60%. Svenske Niam stod bag årets største handel med købet af Copenhagens Towers-komplekset i Ørestad for ca. 2,3 mia. kr. Få hundrede meter væk gennemførte franske AXA årets største køb af boligejendomme – til en pris på 1,3 mia. kr.