Date: April 13, 2023
Real estate prices in Denmark are experiencing an upward trend, reflecting similar rebounds observed in neighboring Nordic countries, Sweden, and Norway. In Denmark, house prices increased by 15.7% for houses, 17.9% for apartments, and 26.4% for vacation homes when measured in May. This growth is indicative of a robust housing market in the region.
In Norway, prices were up 11.4% in May 2021 compared to May 2020, and Finland saw more limited increases, with square meter prices growing 4.9%. The increase in housing prices is attributed to a surge in institutional investment into Europe’s residential market, which reached a new record in 2020, accounting for nearly 30% of total acquisition activity.
In the first quarter of 2022, the price index of one-family houses in Denmark rose by 5.5%, a deceleration from year-on-year increases of 8.1% in Q4 2021, 10.7% in Q3, 13.5% in Q2, and 12.3% in Q1. When adjusted for inflation, house prices increased by a modest 0.6%.
However, the housing market in Denmark has shown some signs of cooling down. The housing index in Denmark decreased to 128.58 points in the fourth quarter of 2022 from 137.13 points in the third quarter of 2022. Moreover, apartment prices in Denmark fell by 1.8% in December, or 9.7% from a June peak, as per seasonally adjusted data.
Despite these fluctuations, the overall trend of rising real estate prices in Denmark mirrors the growth observed in neighboring Sweden and Norway, highlighting the strength of the housing market in the Nordic region.