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Investor Guide to Europe 2014
Denmark is the smallest country in the nordics in
terms of size, and as a result the Danish property
market does see below average levels of liquidity.
Domestic investors tend to be more dominant, as in
other nordic markets.
Foreign investment has been restricted to flows from other
European markets, notably from Sweden, norway, Germany,
the Uk and the netherlands. The most sought after assets are
residential, high street and shopping centre retail and office
properties in CBD and the Greater Copenhagen region.
Denmark also has a well established investor base of its own,
with many institutional investors, listed property companies as
well as some private investors.
The Danish market has lagged the recovery seen in other
nordic markets as investors and lenders have struggled with
a number of problematic assets in the wake of the financial
crisis. The situation is now starting to improve.
overall, debt funding is relatively easy to obtain and as
opposed to bank loans, mortgage loans (from mortgage banks)
are interminable for the lender as long as instalments are paid.
Moreover, in recent years there has been growing activity from
institutional lenders (predominantly insurers) and private and
institutional funds. Danish pension funds tend to stick with
new developments and have in many cases forward funded
projects in order to source deals at an early stage.
Market sizing
Denmark
Europe
Invested stock*
(Total stock)
EUR 40bn
(EUR 85bn)
EUR 3,380bn
(EUR 8,150bn)
liquidity ratio*
(10y average)
2.5%
(3.5%)
4.0%
(4.5%)
2013 volumes
(10y average)
EUR 1.0bn
(EUR 1.3bn)
EUR 139bn
(EUR 135bn)
Investment activity by asset type, 2013
Source : DTZ Research
Investment activity by source of capital, 2013
Source : DTZ Research
Market pricing – Copenhagen (Q4 2013)
office
Retail
Industrial
Current Yield 5.00% 4.75 % 7.50%
Min/Max
(10y)
4.00-6.25% 3.25-5.75% 6.00-7.75%
Yield
definition
net initial yield
Source : DTZ Research
DEnMaRK
* 2012 figures
