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In 2024, Denmark’s real estate market experienced a remarkable 16% increase in property transactions, highlighting its enduring appeal to investors. Residential properties led this surge, accounting for nearly half of all transactions, while logistics properties maintained a significant 25% share. December 2024 saw a peak with transactions totaling DKK 11.4 billion. Looking ahead, forecasts suggest a 15-20% rise in investment activity for 2025, driven by a more balanced market environment and favorable economic indicators.
Recent proposals to amend the Danish Planning Act could significantly alter the housing market. New rules may limit property developments to privately owned homes, restricting rental options and raising concerns about the impact on property values and investor confidence. As municipalities push for greater control, the balance between urban planning needs and protecting property rights becomes crucial. These potential changes could reshape the future of housing in Denmark – understanding the implications is essential for anyone in the property market.
The Danish Tax Agency’s new guidance note on VAT for real estate will impact developers and investors when changing a property’s use from VAT-liable to VAT-exempt. Instead of repaying the full VAT amount, as was previously required, VAT will now be calculated based on the property’s market value at the time of occupation, potentially increasing liabilities. This shift towards a value-based system emphasises the need for careful planning and monitoring of property use changes to avoid unexpected VAT exposure.
Gorrissen Federspiel assists Blackstone and Logicor with sale of pan-Nordic logistics portfolio to Ontario Teachers’ Pension Plan.
Gorrissen Federspiel assists Swedish pension funds and Midstar AB in the divestment of their hotel platform consisting of 28 hotels and 4,702 rooms – the largest hotel real estate transaction in the Nordics on record.
Gorrissen Federspiel assists our long-standing client, Bellakvarter P/S, in connection with the divestment of the Marthahus property located in the Bellakvarter area to AkademikerPension.
The demand for rental housing in Denmark has reached record-high levels, reflected in a historically low vacancy rate of just 2.4% in the first quarter of 2025. This trend is driven primarily by rising home prices and a significant slowdown in new construction, leading more people to seek rental properties.
This shift has been particularly noticeable in Central Jutland, where the drop in vacancy rates suggests a better balance between new housing developments and demand in the region. The demand for rental properties is showing no signs of slowing down as more people turn to rentals as a solution amidst the current housing market conditions.
Overall, this trend of rising rental demand and decreasing vacancy rates signals a shift in the market that seems to be moving in the right direction, offering opportunities for both investors and renters in the evolving housing landscape.
[Sources: Rekordlav boligtomgang: Efterspørgslen på lejeboliger er den højeste i over ti år – EjendomDanmark and EDMT 2025 1 Kvartal 2025 by EjendomDanmark – Issuu]