Residential Real Estate - Denmark

The Residential Real Estate market market in Denmark is projected to reach a value of US$2.17tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.06%, resulting in a market volume of US$2.65tn by 2029.
When comparing globally, China is predicted to generate the highest Real Estate value, with US$112.9tn in 2024.
Denmark's residential real estate market is experiencing a surge in demand due to the country's strong economy and attractive quality of life.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Denmark has seen significant growth and development in recent years.

Customer preferences: One of the key customer preferences in the Danish Residential Real Estate market is the focus on sustainability and energy efficiency. Danish buyers are increasingly looking for properties that are environmentally friendly and have low energy consumption. This trend is driven by a combination of factors, including government initiatives to promote sustainable housing and the growing awareness of the impact of climate change. As a result, there is a high demand for energy-efficient homes with features such as solar panels, insulation, and efficient heating systems.

Trends in the market: One of the major trends in the Danish Residential Real Estate market is the increasing popularity of urban living. Many buyers are choosing to live in cities due to the convenience and amenities they offer. This trend is particularly prominent among younger generations who value easy access to work, entertainment, and cultural activities. As a result, there is a growing demand for apartments and condominiums in urban areas, leading to a rise in construction and development projects in cities like Copenhagen and Aarhus.

Local special circumstances: Denmark has a unique housing market characterized by a high level of homeownership. The majority of Danish households own their homes, which is partly due to favorable mortgage conditions and government support for homeownership. This has created a stable and resilient housing market, with homeownership seen as a long-term investment. Additionally, the Danish government has implemented policies to prevent speculative buying and ensure affordable housing for all citizens, which further contributes to the stability of the market.

Underlying macroeconomic factors: The development of the Danish Residential Real Estate market is also influenced by underlying macroeconomic factors. Denmark has a strong economy with low unemployment rates and high disposable income levels. This provides individuals with the financial means to invest in real estate and contribute to the growth of the market. Additionally, low interest rates make it attractive for buyers to take out mortgages, further stimulating demand for residential properties. In conclusion, the Residential Real Estate market in Denmark is experiencing growth and development driven by customer preferences for sustainable and energy-efficient homes, the trend of urban living, the local special circumstances of high homeownership rates, and the underlying macroeconomic factors of a strong economy and low interest rates.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate - Denmark

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Real Estate Type

Living Space

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Contact

Get in touch with us. We are happy to help.

Residential Real Estate - Denmark

In-Scope

Out-Of-Scope

Related markets:

Residential Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts