Denmark Luxury Residential Real Estate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Denmark luxury residential real estate market is segmented by Type (Apartments and Condominiums and Villas and Landed Houses) and by City (Copenhagen, Aarhus, Odense, Aalborg, and Other Cities). The report offers market size and forecasts for the Denmark luxury homes market in value (USD Billion) for all the above segments.

Market Snapshot

Denmark Luxury Residential Real Estate Market - Market Summary
Study Period: 2018-2027
Base Year: 2021
CAGR: >5 %

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Market Overview

The Denmark luxury residential real estate market is expected to grow at a CAGR of over 5% during the forecast period.

The luxury residential real estate market increased in denmark in 2021 as a result of the impact of the COVID-19 pandemic, as many in the working class saw the need for better homes with access to facilities that encourage Work From Homes policies. Due to increase in the corana virus cases, the industry relied on digital marketing solutions like virtual 360° tours, impressive drone footage of the property, etc.

During the pandemic, the market has been characterised by both high trading activity and rapidly rising prices. The price index of one-family houses in Denmark soared by 14% in May 2021. It was the third consecutive month of double-digit increase and one of the highest y-o-y increases ever recorded.

Demand continues to rise rapidly despite the pandemic, buoyed by negative mortgage interest rates. In the first quarter of 2021, sales of detached/terraced houses rose by 40% to 13,632 units from a year earlier, following annual growth of 15.4% in 2020. Likewise, sales of owner-occupied flats rose by 37% y-o-y to 4,980 units in Q1 2021, while holiday home sales almost doubled to 3,662 units over the same period.

Scope of the Report

Luxury residential real estate is defined differently across different areas, as property values, median resident income, and area development vary widely depending on the metro area. The Denmark luxury residential real estate market is segmented by Type (Apartments and Condominiums and Villas and Landed Houses) and by City (Copenhagen, Aarhus, Odense, Aalborg, and Other Cities). The report offers market size and forecasts for the Denmark luxury homes market in value (USD Billion) for all the above segments. The report also covers the impact of COVID-19 on the market.

By Type
Villas/Landed Houses
Condominiums/Apartments
By City
Copenhagen
Aarhus
Odense
Aalborg
Other Cities

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Key Market Trends

Social Media and Internet Usage Driving the Market

More home shoppers are taking to social media, driving sales in the market. Leads and referrals from social media surged higher as more informed and savvy buyers took advantage of the tech platforms that made pricing and home tours more accessible. With connectivity happening in real-time, the agent’s role became even more crucial.

There were 4.97 million social media users in Denmark in January 2022. The number of social media users in Denmark at the start of 2022 was equivalent to 85.3 percent of the total population. Social media users in Denmark increased by 120 thousand between 2021 and 2022. In early 2022, Facebook and Instagram had 3.60 million users and 2.70 million users respectively in Denmark.

There were 5.77 million internet users in Denmark in January 2022. Denmark’s internet penetration rate stood at 99.0 percent of the total population at the start of 2022. The number of internet users in Denmark increased by 80 thousand between January 2021 and January 2022.

There were 8.88 million cellular mobile connections in Denmark at the start of 2022. These numbers indicate that mobile connections in Denmark were equivalent to 152.4 percent of the total population in January 2022. The number of mobile connections in Denmark increased by 77 thousand between 2021 and 2022.

Denmark Luxury Residential Real Estate Market - Driving Factor Trend

Rise in Smart Homes Driving the Market

Smart homes use connected devices and appliances to perform actions, tasks, and automated routines to save money, time, and energy. Home automation systems allow for the integration of various smart devices and appliances controlled through a centralized system. The growth of smart homes is primarily driven by factors, such as perpetually growing internet users, increased adoption of smart devices, awareness of fit and healthy lifestyles, and a rising sense of home safety and security

The share of smart home users in Europe was larger among countries in Western Europe, with Denmark, Netherlands, and Sweden having the most smart home users. In the year 2021, a share of 39.4% of users is in the high-income group and a share of 25.9% of users are 25-34 years old in Denmark.

In the Denmark smart home market, the number of active households is expected to amount to 1.7m users by 2026. Household penetration will be 36.9% in 2022 and is expected to hit 61.3% by 2026. The average revenue per installed Smart Home currently is expected to amount to USD 862.32.

In Denmark, revenue in the Smart Home market is projected to reach USD 871 million in 2022. Revenue is expected to show an annual growth rate of about 12%, resulting in a projected market volume of USD 1.35 billion during the forecast period.

Denmark Luxury Residential Real Estate Market - Driving Factor Trend

Competitive Landscape

The Denmark luxury residential real estate market is fragmented and highly competitive. Competition and pricing have increased strongly, and new investors and developers have entered the market. Moreover, both the demand and supply of real estate are increasing. The residential real estate market consists of Regional and international players. Some of the key players operating in the market include Rodgaard Ejendomme, Fink Ejendomme, Bruce Turner, 1927 Estate, etc.

Recent Development

December 2021: The Wave, an apartment complex in Vejle, Denmark, was finally completed after eleven years of construction by Henning Larsen Architects (an International Architectural Firm). The building's completion brings an end to an 11-year construction process that began in 2006. It contains ultimately 105 luxury apartments distributed over 14,000 square meters (150,000 sq ft).

August 2021: Heimstaden Bostad AB (a leading residential real estate company in Europe) strengthens its presence in Denmark through a SEK 3.5 billion (USD 371 million) acquisition of 1,473 homes in several attractive locations. The portfolio consists of 34 properties, of which 18 are standing assets with 680 homes, including one commercial property. 16 properties are under construction and are acquired in a forward purchase structure with turnkey delivery.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Value Chain/Supply Chain Analysis

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

    5. 4.5 Current Economic Scenario and Consumer Sentiment

    6. 4.6 Residential Real Estate Buying Trends - Socioeconomic and Demogpaphic Insights

    7. 4.7 Government Initatives, Regulatory Aspects for Residential Real Estate Sector

    8. 4.8 Insights on size of real estate lending and loan to value trends

    9. 4.9 Insights on interest rate regime for general economy, and real estate lending

    10. 4.10 Insights on captial market penetration and REIT presence in residential real estate

    11. 4.11 Impact of COVID - 19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Villas/Landed Houses

      2. 5.1.2 Condominiums/Apartments

    2. 5.2 By City

      1. 5.2.1 Copenhagen

      2. 5.2.2 Aarhus

      3. 5.2.3 Odense

      4. 5.2.4 Aalborg

      5. 5.2.5 Other Cities

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration

    2. 6.2 Company Profiles

      1. 6.2.1 Rodgaard Ejendomme

      2. 6.2.2 Fink Ejendomme

      3. 6.2.3 Bruce Turner

      4. 6.2.4 1927 Estate

      5. 6.2.5 Juvel Ejendomme

      6. 6.2.6 Unika Ejendomme ApS

      7. 6.2.7 NRE Group

      8. 6.2.8 Zasa Ejendomme

      9. 6.2.9 Kaj Ove Madsen A/S

      10. 6.2.10 Krobi*

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE MARKET

  8. 8. DISCLAIMER

  9. 9. APPENDIX

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Frequently Asked Questions

The Denmark Luxury Residential Real Estate Market market is studied from 2018 - 2027.

The Denmark Luxury Residential Real Estate Market is growing at a CAGR of >5% over the next 5 years.

Rødgaard Ejendomme, Fink Ejendomme, Bruce Turner, 1927 Estate, Juvel Ejendomme are the major companies operating in Denmark Luxury Residential Real Estate Market.

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