Based on new figures from property firm Newsec, the Danish property federation, EjendomDanmark, has warned that investors are increasingly avoiding Denmark.
Since 2017, the transaction volume of property has halved in Denmark – from 90 billion kroner to about 45-50 billion – while developments have gone in the opposite direction in Norway and Sweden.
“The property market is being used as an inexhaustible source for financing, and that changes the basic rules of the game in the market,” said Jannick Nytoft, the CEO of EjendomDanmark.
“The so-called Blackstone intervention and the latest new warehouse tax has immense consequences for, among other things, jobs. This creates insecurity about the market, and the investors are naturally aware of that.”
Share of Nordic transactions dwindling
In 2017, 26 percent of Nordic property transactions occurred in the Danish market – a figure that has fallen to 17 percent in 2020.
Meanwhile, Sweden’s share has increased from 33 to 48 percent during that same period.
“We need to attract investors so we can develop our buildings and cities. This will lead to not only modern and green housing, but also more jobs and growth,” said Nytoft.