The City of Copenhagen has invoked section 14 of the Danish Planning Act to impose a temporary ban on several hotel projects in central Copenhagen. While some hotel projects were later exempted, others remain subject to the ban. The municipality’s approach raises questions about planning certainty and the future regulatory approach to hotel developments and investments in the Danish capital.
A recent ruling from the Eastern High Court highlights two key issues for landlords under section 194 of the Danish Rent Act — an obligation that continues to cause misunderstandings that can have serious consequences for landlords.
A new analysis reveals that unused attic space in existing residential apartment buildings could accommodate up to 22,000 additional homes nationwide. As the Danish Rent Act allows landlords to set the rent for such units freely, they are provided with a significant financial incentive to unlock the potential of their unused attic space.
Gorrissen Federspiel has advised a fund managed by Savills Investment Management on the sale of high street retail property to a local investor. The property, located at Købermagergade 48 in Copenhagen, comprises a lettable area of approximately 2,500 sqm.
The Danish rental market continues to experience historically low vacancy rates. Vacancy rates currently stand at 1.9%, which is well below the 12-year average of 3.5%, and have remained at record-low levels since Q4 2024.
The shortage of available rental housing is particularly evident in the largest urban areas. Vacancy rates are reported at 1.7% in the Capital Region of Denmark and 1.5% in the Central Denmark Region while Aarhus stands out with an exceptionally low vacancy rate of just 0.9%. This highlights a sustained imbalance between supply and demand, particularly in cities experiencing high growth.
These persistently low vacancy rates suggest structural constraints in the housing supply, emphasising the need for political intervention. According to the industry association EjendomDanmark, attention should shift towards measures that can increase the housing supply across all segments. Suggested initiatives include faster and more streamlined planning and permitting processes, as well as the improved utilisation of existing buildings, for example by converting unused attic space into residential units.
Overall, the trend points to a rental market, where continued demand – particularly in urban areas – is likely to intensify pressure on availability and the need for policy intervention.