Housing prices in Denmark show a decline: the reasons
Boligsiden has analyzed the real estate market and compiled an index of house prices in Denmark. The basis was an assessment of transactions in the sector, carried out in the last quarter.
According to the report, during the period, the market recorded a decrease in the value of houses and apartments at 2.7%. On average, a square meter in an apartment costs 17,383 Danish kroner, or about $2248. In total, there are 93 municipalities in the country, and 58 of them recorded a decrease in prices in the sector of townhouses and villas. The rest of the price has either risen or remained the same.
The leader in the increase in home prices was Brondu, where the rise in price over the quarter amounted to 12.4%. In second place is the municipality of Billund, followed by Langeland. Frederikshavn and Norddjurs also showed high growth rates.
The greatest decrease in housing costs is observed in Tonder and Struer, as well as Morso. The top ten regions with the greatest drop in prices are Rebild, Thornby, and Holstebro.
The most expensive housing sold in Gentofte, here a square meter in the house is 7937 dollars. In Copenhagen, a villa will cost 6,700 dollars per square meter. In the municipality of Lyngby-Taarbek, the price is $ 6,214 per square meter.
Most affordable housing in Vesthimmerland, where the price per square meter is 1025 dollars. It is followed by the municipality of Langeland, where the price is $1015 per square meter. The lowest price for a villa or townhouse is in Morso – $647 per square meter.
Experts say that the real estate market in Denmark has grown for 6 months, and then began to slow down. Analysts say the key reason for this is rising interest rates, as well as record levels of inflation. In addition, pressure on the market and its participants has increased prices for energy, utilities, and building materials.
The worst month for the real estate market in Denmark in 2022 was June. During this period only 6494 objects were sold. In general, the second quarter was inferior to the rest in terms of the volume of activity in the sector. These trends were especially unusual in terms of seasonality, as the summer months are considered the high season. The last time national sales declined was in June 2014, but overall quarterly results were better then.
The Danish market is experiencing a decline in demand, which is reflected in the pricing. However, despite the decline in interest in real estate, in the most popular regions, a square meter continues to rise in price.