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As we step into 2025, the Danish real estate market continues to attract considerable attention from both domestic and international investors. Based on the latest findings from various reports and data, we see healthy indicators of the market’s robust performance over the past two years – and equally promising signals for the year ahead.
Between 2023 and 2024, overall transaction activity increased by an impressive 16%, underlining the enduring appeal and resilience of Danish investment properties. We saw notable shifts in transactions, such as the steady increase in residential property transactions. In 2023, residential properties accounted for 41% of all transactions, but by 2024 this figure had risen to almost 50%, securing its position as the most active asset category of the year. Logistics properties followed with a 25% share of the total investment volume, indicating that industrial and warehouse properties remain key components of a well-balanced investment portfolio (source: Erhvervsmæglernes Branchedata).
A particularly notable month last year was December 2024, with a transaction volume of DKK 11.4 billion – the highest monthly figure for the year.
While domestic investors continue to dominate the Danish market, their share of the total investment volume has fallen slightly – from 67% in 2023 down to 61% in 2024. This slight decline may indicate growing international interest in Danish real estate (source: Nordicals MarketForesight Q1 2025).
In a recent market update, Colliers Denmark argues that the Danish market’s adjustment to higher interest rates appears to have run its course, restoring a healthier spread between borrowing costs and potential returns. Far from experiencing a true crisis, the market has undergone a necessary correction after years of near-zero interest rates. As a result, domestic investors now see a more balanced environment – one in which high-quality assets may offer stable long-term returns without the inflated pricing of previous years. As a result, the investment activity is forecast to increase by 15-20% in 2025 (source: Colliers Denmark, Puls, Q1 2025).
Forecasts point to a gradual improvement in housing delivery rates as rising home values bolster developer profitability. With the supply pipeline expected to pick up momentum, we expect an expanded range of residential property opportunities for international players. Economic indicators point to comparatively low borrowing costs and a favourable EUR-USD exchange rate in 2025. These conditions could attract additional foreign capital, increasing liquidity in both the residential and commercial segments (source: CBRE, European Real Estate Market Outlook 2025).
With transaction levels on an upward trajectory, a strong residential market, and continued international interest, the Danish real estate scene appears poised for another dynamic year.
As always, close monitoring of the political landscape, economic indicators, regulatory changes, and new supply dynamics will be key to capitalising on the fast-moving market changes. In a year where unpredictable situations will continue to affect us, Gorrissen Federspiel will closely monitor these developments. We look forward to the year with confident expectations for the Danish real estate market.