Project Grønttårnet

)ÊÜãØèÕÜ )ó— Project Grønttårnet DANISH RESIDENTIAL MARKET

Population growth rates in and around Copenhagen are the highest in the country, with a surge in the ranks of Copenhagen residents causing a marked housing shortage. To meet the extra demand, the level and scale of residential newbuilding must increase significantly in the years to come.

In Copenhagen, the projected population boom is causing a surge in residential demand. To meet this demand, the level and scale of residential newbuilding must increase significantly in the coming years. According to Statistics Denmark, in 2016 residential completions extended to 353,000 sqm space in Copenhagen due to a high volume of development projects. Although this figure is projected to increase, the massive demand for housing cannot be met in the foreseeable future given the current population forecast. The strong demand combined with historically low financing costs and strong demographics have contributed to hiking Copenhagen housing prices. Similarly, rents have increased significantly in recent years. Student housing Increasing market rent levels in the residential market make it difficult to find suitable and affordable flats even for student co-habitation. Moreover, the price of ownership housing has surged, making parents’ less inclined to acquire flats for their children despite record-low interest rates. This has limited students’ housing options and increased demand in the already strained student housing market. In fact, the Copenhagen student

housing market is facing an even greater imbalance between demand and supply than the residential market in general. Since 2006, Copenhagen has seen the completion of some 41,300 sqm student housing, according to Statistics Denmark. In the same period, the number of students aged 19-27 residing in Copenhagen has increased from 51,100 to 70,800. Assuming that an average student requires 30 sqm gross floorspace, these student housing completions provide accommodation for around 1,370 of the 19,700 students. In fact, the gap between the number of enrolled and resident students is fairly stable in the City of Copenhagen and the City of Frederiksberg, as it has exceeded 25,000 students for the past decade. In 2016, the figure was 26,045, which would require student housing completions of some 780,000 sqm to meet the extra demand, given the students’ preference for living in Copenhagen and Frederiksberg. Not surprisingly, the central student accommodation agencies in Copenhagen, i.e. Kollegiernes Kontor I København (KKIK) and Centralindstillingsudvalget (CIU), have around 12,000 and 14,500 students on their respective wailing lists.

There is a substantial lag in the current level of new student housing construction that it will take many years to eliminate.

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