The cheapest houses in Copenhagen have increased in price significantly more – and faster – than their counterparts in the rest of the country, according to a new study by DR.
Not only have some houses tripled in price since the 90s, units in the cheapest third of the housing market have sometimes kept pace with Copenhagen’s most expensive properties by increasing in price at the same rate. The average price has shot up from 770,000 kroner in 1992 to 2.5 million kroner today.
The good part of town
The study, which analysed real estate data from 1992 to 2015, found that prices for the most inexpensive houses in Copenhagen city (which includes the areas of Frederiksberg, Dragør and Tårnby) increased a whopping 224 percent in the time period under review. Prices in Copenhagen proper, meanwhile, increased by an equally impressive 150 percent.
The huge rate of increase can be put down to the simple principle of demand and supply, according to Curt Liliegreen, director of the Knowledge Centre for Housing Economics.
“When expensive houses get so expensive that ordinary people can’t afford them anymore, they naturally begin to look for cheaper alternatives. And if demand increases, then so does price,” he said.
Other experts believe that the data is an indication that a location close to Copenhagen means more to potential buyers than it did 23 years ago.