The prices of houses and apartments in Copenhagen and some other parts of the country are rising so quickly that they are soon expected to reach the levels from before the financial crisis collapsed the housing market.

House prices in Copenhagen have shot up by 11.3 percent over the past year alone and, should the trend continue, the pre-financial crisis level will be reached within six months, according to Danske Bank.

“We are not yet on the cusp of another housing bubble, but we are moving towards one and we can see it,” Steen Bocian, chief economist at Danske Bank, told Børsen business newspaper.

Urban attraction
Housing prices in Aalborg have also risen drastically, by 7.7 percent, over the past year and is the first city in Denmark to reach the dizzying price levels from before the financial crisis.

Bocian maintained that the dramatic price increase was due to a demographic trend where more people are moving to urban areas combined with the extremely low interest rates at present.