The real estate market for condominiums in Copenhagen has seen significant price growth over the past decade, reaching new all-time highs. Recent data indicates that the average sales price per square meter has doubled since 2014, reflecting increasing demand and limited supply.
Price Surge in Copenhagen’s Condominium Market
Over the last 10 years, the price development for condominiums in Copenhagen has been nothing short of remarkable. According to newly released January figures from Boligsiden’s Market Index, the average sales price has now reached 56,637 DKK per square meter. This figure marks the highest level ever registered for condominiums in Copenhagen and is significant as it represents a doubling of the average price that buyers paid just a decade ago.
Steep Price Climbs in Copenhagen
Looking back, in December 2014, just before the turn of the year into 2015, the average sales price for condominiums in Copenhagen was 28,281 DKK per square meter. The current price level, therefore, reflects a staggering 100 percent increase over the past decade. Birgit Daetz, the communications director and housing economist at Boligsiden, notes, “Prices for condominiums in Copenhagen have steadily increased over the last 10 years. During the pandemic, prices accelerated, and although there was a notable decline in 2022, trends have rebounded, and we are now at the highest price levels.”
This rising demand is driven by Copenhagen’s status as a desired area in Denmark. In recent months, there has been a noticeable increase in the demand for apartments in the capital, leading to more transactions within a relatively limited supply. This higher demand is further pushing prices upward. With the significant growth of prices, buyers today are paying approximately 5 million DKK for a 90-square-meter condominium, compared to around 2.5 million DKK back in December 2014.
Copenhagen Impacts National Average Prices
The record-high prices in Copenhagen not only reflect local market trends but also influence the national average. The average sales price per square meter across Denmark was 36,987 DKK in January, marking a doubling of sales prices on a national level as well, although this increase has occurred over a slightly longer period since October 2012. The overall activity in the condominium market is vibrant, driven by a mix of factors.
What’s Driving the Growth?
Daetz explains that the lively activity in the condominium market can be attributed to a combination of a decreasing interest rate environment, which has made it easier for more buyers to realize their housing dreams. Simultaneously, the general employment levels in Denmark remain high, contributing to solid savings among Danish households. “The availability of condominiums is slightly declining, and as options diminish, buyers tend to pay more to secure a purchase, driving prices further up,” she adds.
Concerns for Young People and Newcomers
The rapid price growth in Copenhagen’s condominium market has raised concerns about affordability for young people and newcomers. With the doubling in prices, many potential first-buyers are finding it increasingly difficult to enter the market.
Jørgen Munksgaard Rasmussen from the Knowledge Center Bolius describes the price development as a “spiral”: “It is a self-reinforcing spiral objectively contributing to an increase in wealth inequality. If you bought a flat in central Copenhagen for the price of 1 million DKK [about $140,000] 10 years ago and sell it for 3 million today, you suddenly have equity of 2 million. Parents can use the leverage to buy flats for their kids in attractive areas. So the investments and accumulation of wealth accelerate,” Rasmussen says.
Future Outlook
Over the last ten months, prices for condominiums nationwide have been on the rise, although the price trajectory has remained relatively stable over the past month with only a minor fluctuation of 0.1 percent. This indicates a cautious approach in the market as both sellers and buyers navigate the current economic conditions. As Denmark continues to see positive employment figures and high savings rates, the market may remain active and competitive.
