Danish house prices: a regional overview
Rising interest rates and falling demand are putting pressure on house prices in Denmark. According to the Global property guide, property values in the country continue to fall. The slowdown in the local economy and weakness in the construction sector exacerbate the situation.
In Q3 2023, the average price of a house with a terrace was €2177 per square metre. This figure is 1.3% lower than in the same period of 2022. In inflation-adjusted terms, property values across the country fell by 3.4%. For other types of property, the situation is as follows:
– flats increased in price by 0.3% in 2023, with a square metre costing €4,517;
– adjusted for inflation, the price of apartments fell by 1.9%;
– the price of holiday homes has fallen by 1.6%, or 3.7% adjusted for inflation. The price per square metre is €2,853.
At the same time, the Danish Statistical Office noted a slowdown in the housing market’s price falls. In the third quarter of last year, the value of single-family houses in the country rose by 3%. The cost of owner-occupied apartments rose by 2.4%.
Overview of price trends by region
Copenhagen and the surrounding areas are the most popular regions among house buyers. In 4 out of 5 regions, there was an increase in transactions involving houses in the suburbs. In the capital and its suburbs, the average price of housing transactions rose by 1.2%, excluding inflation. However, when adjusted for inflation, prices fell by 1% to €5,854 per square metre.
Overview of price changes by region:
– in Southern Denmark, property values fell by 9.8% to €2391 per square metre;
– prices fell by 2.2% to €3536 per square metre in the central part of the country;
– in Zealand, prices rose by 2.4% to €2736 per square metre;
– residents in North Jutland recorded a 1.1% increase in property values (€2,587 per square metre).
According to ADMB’s analysis, the purchase volume of terraced houses fell by 0.4% in 2023. A total of 29127 properties were sold during the period. The number of apartment transactions in Denmark rose 3.6% to 9,960 units. The number of houses sold fell by 3.3% to 5035 contracts.
Situation in the construction sector
The construction market has slowed considerably over the past year. The volume of new housing starts in 2023 was 36% lower than in 2022. The number of projects completed fell by 2.3%. In September last year, the number of projects under construction fell by more than 48% to 27362 properties. This is the lowest level in Denmark in 7 years.
Experts’ forecasts are not optimistic either. Analysts believe that the housing market in the country will remain weak in the coming year.