Each year, Chambers and Partners appoints experts all over the world to contribute with analyses to the Chambers Global Practice Guides. The guide focuses on the legal issues that affect business and trading in 53 countries thereby providing in-house advisers and other interested parties with a unique basis of comparison across borders.
The article by partner Michael Neumann and attorney Kenneth Steenberg in the chapter "Trends and Developments" is an analysis of recent trends and developments on the Danish property market.
The busiest year on the Danish property market
2021 was the busiest year ever on the Danish property market but increasing interest rates and sky-rocketing inflation are expected to impact the Danish property market in 2022 despite a continuing very high level of activity on the market.
The market players expect that the high inflation and the increasing interest rates seen so far will affect all types of investment properties. However, the activity on the Danish property market is still very high, and Michael Neumann and Kenneth Steenberg emphasise that foreign investors continue to see Denmark as a safe place to invest.
The investments are moving to a number of new growth markets in 2022, and due to a continuously increasing climate consciousness, there is more focus on energy-friendly buildings and the use of sustainable building materials within the industry.
COVID-19 - for better or worse
The COVID-19 pandemic has created a permanent need for a larger number of more modern logistics properties, and this is a significant reason for the continuously increasing investment volume outside the large cities. It is characteristic of the time during and after the pandemic to invest in the logistics and industrial sector due to lack of storage facilities.
The need for a flexible working environment is also greater than before the pandemic, which has increased the demand for modern facilities for especially teamwork and online meetings.
The hotel industry has also been affected, especially in the capital, but the bailout packages have generally contributed to the number of bankruptcies not being at the level feared at the beginning of the crisis, and the investors generally have confidence in the industry.
Michael Neumann and Kenneth Steenberg emphasise that the increasing prices of building materials particularly affect development projects within the social housing segment, which in 2022 is significantly affected by a slowdown as a direct consequence of the higher prices.
Pdf version of Real Estate 2022: Denmark - Trends & Developments
Chambers & Partners Global Practice Guides– Real Estate 2022: Denmark - Trends & Developments