Real Estate in Denmark
From an investor perspective, the danish commercial real estate market is a safe haven. This is both for danish investors and foreign investors, where we see that the transactions are almost equally divided between danish and foreign investors. Since 2019, the transaction volume has risen year after year, and in 2021 we will see the highest transactions volume ever on the danish real estate market. The residential segment continues to be the segment with the highest transaction volume, this is currently followed by the office segment. However, the industrial segment is close behind the office segment and they are currently competing to become the segment with the second highest transactions volume in 2021. In fourth place, we find the retail segment.
The Danish economy has for a long time shown stable growth across the board with rising employment, modest inflation, low interest rates, and healthy GDP development. The Danish economy is doing well in a European context, and many foreign investors perceived Denmark as a safe haven for commercial real estate investments due to the political and financial stability and the lucrative mortgage opportunities. Due to the stable political system, the World Bank has ranked Denmark as either the most or the second most business-friendly country in Europe since they introduced their "Ease of Doing Business" ranking in 2005. The list ranks 190 economies according to how good the regulatory conditions are for running and starting a local business. In 2020, Denmark was ranked the most business-friendly country in Europe and the fourth most business-friendly country globally.