MARKET Update
Office Industrial Rates International Poul Erik Bech
Yield
Market rent
2026
Employment GDP growt Availability
Residential rental
Consumer confidence
Q3
Retail
Executive summary – 3rd quarter The transaction volume for 2026 year-to-date stands at DKK 37.6 billion. This corresponds to approximately nine-tenths of the level recorded in the same period last year. This development is likely to have been influenced by recent geopolitical turmoil, with the associated rise in mortgage interest rates. However, the Danish economy is considered to be strong, as employment is at a record high, unemployment remains low, inflation is under control, and exports have performed well despite international turmoil. Residential rental properties remain the most sought-after segment, accounting for just under two-thirds of transaction volume year-to-date. Urbanisation, a housing shortage in the major cities, and a stable rental market are underpinning demand. International investors are accepting relatively low yield requirements for modern properties with market rents in the largest cities. At the same time, demand is rising for older housing stock, though it is primarily small and medium-sized investors who are active in this segment. Mortgage credit institutions remain willing to finance high-quality assets – a hallmark of the Danish mortgage credit model, which has historically proved resilient during periods of economic headwinds. The office market is divided. There is solid demand for modern, energy-efficient offices with flexible layouts in
central locations, particularly in Copenhagen and the major regional cities. Conversely, older office properties with low energy efficiency and less attractive locations are facing challenges in the form of rising vacancy rates and the need for investment. Overall, the vacancy rate has risen slightly over the past six months. The retail segment remains stable in the prime high streets and leading shopping centers, whilst secondary retail continues to face pressure from changing consumption patterns and increased online shopping, making active property management crucial. The industrial and logistics segment is structurally supported by e-commerce, security of supply and efficient distribution, but vacancy rates have been rising throughout 2026. The hotel market has seen a marked recovery driven by strong tourism, with the number of hotel overnight stays in the first half of 2026 being 5 per cent higher than in the same period last year. The strong macroeconomic conditions make Denmark attractive to international investors, and Copenhagen continues to rank highly amongst the leading European investment cities. Overall, developments for the remainder of 2026 point towards a more balanced market, where rental trends, quality, location and sustainability are key drivers of value creation.
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The Danish economy Annual GDP growth
The Danish economy continues to be assessed as robust, with a balanced growth outlook, though slightly lower than in recent years. Capacity pressure in the economy is currently roughly neutral, and there are no signs of significant imbalances building up. GDP rose by 1.5 % in the first quarter of 2026 relative to the previous quarter.
8% 6,5%
6% 4%
3,1%
3,5%
3,1%
2,9% 1,9%
2%
1,8%
1,7% 0,4%
2,0%
1,8%
0,6%
0% -2%
-1,8%
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
-4%
Real growth in BNP compared to previous year (%) Expected real growth in BNP compared to previous year (%)
Interest rates
GDP growth is expected to be more moderate in the coming years. According to Danmarks Nationalbank’s latest forecast, GDP is projected to grow by 1.8 % in both 2026 and 2027, rising to 2.0 % in 2028. Growth is being dampened partly by lower global demand due to geopolitical tensions and the war in the Middle East, while higher energy prices are putting pressure on inflation. At the same time, Danish households remain cautious amid economic uncertainty. Growth has been driven by exports, particularly from the pharmaceutical industry, including foreign production under Danish ownership. Going forward, export growth is expected to slow amid a global slowdown, although the pharmaceutical sector and exports of goods produced abroad continue to contribute positively to the Danish economy. Source: Statistics Denmark and Danmarks Nationalbank
Inflation trends and interest rate outlooks continue to be marked by considerable uncertainty. Following a period of gradually declining inflation approaching central banks’ targets, there are renewed signs of rising inflationary pressure, partly due to higher energy prices and increased uncertainty in commodity markets stemming from the situation in the Middle East.
6% 5% 4%
In response, the European Central Bank (ECB) raised its key interest rate by 25 basis points in June, from 2.00 to 2.25 %, aiming to dampen demand and limit the risk of inflation becoming entrenched at too high a level. Due to Denmark’s fixed exchange rate policy, Danmarks Nationalbank adjusted its rate correspondingly — the first such increase in 3 years, underscoring the uncertain geopolitical situation. Danmarks Nationalbank expects inflation of 1.8 % in 2026, 2.0 % in 2027, and 1.9 % in 2028, though with potential for significantly higher inflation this year.
3% 2% 1% 0%
Short-term mortgage rate
In week 31, the long-term mortgage rate stood at 4.28 % and the short-term rate at 2.33 %, meaning rates remain at a higher, but moderate, level. Future interest rate developments will largely depend on inflation, energy prices, and international growth prospects. Source: Finance Denmark and Danmarks Nationalbank
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
-1%
Long-term mortgage rate
Consumer confidence indicator
The consumer confidence indicator, which reflects the population’s view of the current and future economic situation, stood at -14.7 in July — a slight decline from -14.0 in June. The average over the past 6 months is -15.7.
20 10
The nearly unchanged consumer confidence is mainly due to an improvement in expectations for the family’s future financial situation, offset by declines in the assessment of Denmark’s current economic situation and consumers’ willingness to buy.
0
Despite low inflation, rising real wages and a strong labour market, Danish consumers continue to struggle to find optimism about their own and Denmark’s economy. Consumer confidence has mostly been declining since June 2024, when it stood at -4.4, but remains above the low point of October 2022, at -37, the lowest level in the history of the statistics.
-10 -20 -30
Employees
The continued negative consumer confidence is partly due to price increases on several goods and fears that inflation could accelerate again. Geopolitical tensions, the war in the Middle East, and higher energy prices are also contributing to the uncertainty and negative consumer confidence. Source: Statistics Denmark The labour market has shown significant progress in recent years. Employment has risen markedly since 2019 and remains at a historically high level. Statistics Denmark’s latest revised figures show approximately 3,087,900 wage earners in May 2026, up 0.1 % from April and 1.1 % (32,700 persons) over the preceding 12 months. Employment thus remains very high, although growth has slowed compared with previous years.
3.1 Mio 3.0 2.9
Pressure on the labour market has eased and is expected to continue easing. The labour force has grown due to increased international labour and later retirement among older workers. Danmarks Nationalbank continues to expect employment growth, but at a slower pace, in line with more moderate economic growth.
2.8 2.7 2.6
2026
2025
2024
2023
2022
2021
2020
2019
2.5 2018
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
-40
From May to June, unemployment rose by 500 to 93,800 full-time persons, leaving the unemployment rate unchanged at 3.1 %. Over the past 24 months, unemployment has been stable to slightly rising, but remains low and is expected to develop stably over the coming quarters. Source: Statistics Denmark and Danmarks Nationalbank
3
Residential rental newer properties
Area* (see specifications page 14)
Capital of Denmark
Central Copenhagen
Østerbro, Frederiksberg and Gentofte
Harbour areas
Ørestad
Remaining Copenhagen
Western suburbs
Remaining Zealand
Northern suburbs
North Zealand
East Zealand
West Zealand
South Zealand
Lolland, Falster and Møn
Odense
Other Funen
Southern Denmark
Vejle
Kolding
Fredericia
Esbjerg
Sønderborg
Other South Jutland
Central Jutland
Aarhus
Silkeborg
Viborg
Herning
Northern Jutland
West Jutland
Aalborg
Hjørring
Frederikshavn
Prime Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m
4
Secondary
Tertiary
Trend
3.50%
4.00%
4.25%
2,800 DKK
2,400 DKK
2,200 DKK
3.50%
4.00%
4.25%
2,700 DKK
2,350 DKK
2,200 DKK
3.50%
4.00%
4.25%
2,900 DKK
2,400 DKK
2,200 DKK
4.00%
4.25%
4.50%
2,500 DKK
2,200 DKK
2,000 DKK
3.75%
4.25%
4.50%
2,500 DKK
2,200 DKK
2,050 DKK
4.25%
4.75%
5.00%
2,050 DKK
1,850 DKK
1,700 DKK
4.25%
4.75%
5.00%
2,250 DKK
1,950 DKK
1,750 DKK
4.50%
5.25%
6.00%
2,150 DKK
1,850 DKK
1,650 DKK
4.75%
5.00%
6.50%
2,050 DKK
1,800 DKK
1.600 DKK
5.25%
6.50%
8.00%
1,650 DKK
1,450 DKK
1,150 DKK
5.50%
6.50%
8.00%
1,550 DKK
1,300 DKK
1.050 DKK
5.75%
7.00%
8.50%
1,350 DKK
1,050 DKK
850 DKK
4.75%
5.00%
5.50%
1,475 DKK
1,300 DKK
1,200 DKK
5.25%
5.75%
6.50%
1,300 DKK
1,100 DKK
950 DKK
5.00%
5.50%
6.50%
1,400 DKK
1,250 DKK
1,050 DKK
5.50%
6.00%
7.00%
1,400 DKK
1,200 DKK
1.000 DKK
5.50%
6.00%
7.00%
1,350 DKK
1,150 DKK
950 DKK
5.00%
6.00%
7.50%
1,300 DKK
1.200 DKK
1.000 DKK
5.75%
7.00%
8.00%
1,200 DKK
1.050 DKK
900 DKK
5.75%
7.00%
8.00%
1,100 DKK
875 DKK
750 DKK
4.00%
4.50%
5.00%
1,950 DKK
1,650 DKK
1,500 DKK
4.75%
5.75%
7.25%
1,400 DKK
1,200 DKK
1.050 DKK
5.25%
6.25%
7.25%
1,250 DKK
1,100 DKK
950 DKK
5.25%
6.00%
7.00%
1,250 DKK
1,100 DKK
950 DKK
5.50%
6.50%
8.00%
1,200 DKK
950 DKK
800 DKK
4.50%
5.00%
5.75%
1,400 DKK
1,200 DKK
1.050 DKK
5.25%
6.50%
7.25%
1,250 DKK
950 DKK
775 DKK
6.75%
7.50%
8.00%
1,050 DKK
900 DKK
700 DKK
Source: EDC International Poul Erik Bech, estimates as of Q3 2026
Yield in %, annual market rent in DKK/sq m incl. operating expenses and trends for the next 12 months
Residential rental fully developed properties
Capital of Denmark
Area* (see specifications page 14) Central Copenhagen
Østerbro, Frederiksberg and Gentofte
Remaining Copenhagen
Western suburbs
Remaining Zealand
Northern suburbs
North Zealand
East Zealand
West Zealand
South Zealand
Lolland, Falster and Møn
Odense
Other Funen
Southern Denmark
Vejle
Kolding
Fredericia
Esbjerg
Sønderborg
Other South Jutland
Central Jutland
Aarhus
Silkeborg
Viborg
Herning
Northern Jutland
West Jutland
Aalborg
Hjørring
Frederikshavn
Prime Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in %
Secondary
Tertiary
Trend
3.75%
4.25%
4.50%
1,950 DKK
1,800 DKK
1,650 DKK
3.75%
4.25%
4.50%
1,950 DKK
1,800 DKK
1,650 DKK
4.00%
4.50%
4.75%
1,800 DKK
1,700 DKK
1,600 DKK
4.75%
5.25%
6.00%
1,700 DKK
1,600 DKK
1,400 DKK
4.50%
5.00%
5.75%
1,750 DKK
1,650 DKK
1,450 DKK
4.75%
5.50%
6.25%
1,800 DKK
1,550 DKK
1,300 DKK
4.75%
5.25%
7.00%
1,800 DKK
1,550 DKK
1,150 DKK
5.50%
6.75%
8.00%
1,350 DKK
1.150 DKK
950 DKK
5.50%
7.00%
9.00%
1,300 DKK
1.125 DKK
950 DKK
6.25%
8.75%
10.50%
1,150 DKK
950 DKK
800 DKK
5.00%
5.25%
5.75%
1.250 DKK
1.100 DKK
950 DKK
5.75%
6.25%
7.50%
1.100 DKK
950 DKK
800 DKK
5.25%
6.00%
6.75%
1,225 DKK
1.050 DKK
875 DKK
5.75%
6.25%
7.00%
1,175 DKK
1.000 DKK
850 DKK
5.75%
6.25%
7.25%
1,125 DKK
975 DKK
825 DKK
5.25%
6.75%
7.75%
1,200 DKK
1.025 DKK
850 DKK
6.00%
7.00%
8.00%
1,150 DKK
950 DKK
775 DKK
Yield in %
6.00%
7.25%
8.25%
Annual rent in DKK/sq m
950 DKK
800 DKK
675 DKK
Annual rent in DKK/sq m
Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in % Annual rent in DKK/sq m Yield in %
4.00%
4.50%
5.00%
1,575 DKK
1,400 DKK
1,225 DKK
4.75%
5.75%
7.25%
1,300 DKK
1.000 DKK
800 DKK
5.75%
7.00%
8.25%
1,050 DKK
825 DKK
725 DKK
5.75%
6.50%
7.50%
1,150 DKK
950 DKK
800 DKK
6.00%
7.25%
9.00%
1,050 DKK
825 DKK
675 DKK
4.50%
5.25%
6.25%
1,200 DKK
1,050 DKK
850 DKK
5.75%
6.50%
7.75%
1.000 DKK
825 DKK
650 DKK
Yield in %
6.75%
7.50%
8.25%
Annual rent in DKK/sq m
900 DKK
800 DKK
650 DKK
Annual rent in DKK/sq m
5
Source: EDC International Poul Erik Bech, estimates as of Q3 2026
Yield in %, annual rent in DKK/sq m incl. operating expenses and trends for the next 12 months
Residential rental cost determined rental properties
Northern Jutland
Central Jutland
Southern Denmark
Remaining Zealand
Capital of Denmark
Area* (see specifications page 14)
Prime
Secondary
Tertiary
Trend
Central Copenhagen
Yield in %
1.50%
2.25%
3.00%
Østerbro, Frederiksberg and Gentofte
Yield in %
1.75%
2.25%
3.00%
Remaining Copenhagen
Yield in %
2.50%
3.00%
3.50%
Western suburbs
Yield in %
3.00%
3.75%
4.50%
Northern suburbs
Yield in %
3.00%
3.50%
4.25%
North Zealand
Yield in %
4.00%
5.00%
6.00%
East Zealand
Yield in %
4.00%
5.00%
6.50%
West Zealand
Yield in %
5.00%
6.25%
7.00%
South Zealand
Yield in %
5.00%
6.00%
7.25%
Odense
Yield in %
3.50%
4.50%
5.25%
Other Funen
Yield in %
5.25%
5.50%
7.00%
Vejle
Yield in %
5.00%
5.50%
6.00%
Kolding
Yield in %
5.00%
5.50%
6.50%
Fredericia
Yield in %
5.50%
6.00%
6.50%
Esbjerg
Yield in %
5.00%
5.50%
6.50%
Sønderborg
Yield in %
5.50%
6.00%
6.50%
Other South Jutland
Yield in %
5.25%
6.25%
7.25%
Aarhus
Yield in %
2.50%
3.75%
5.00%
Silkeborg
Yield in %
4.50%
5.25%
7.00%
Viborg
Yield in %
5.25%
6.00%
7.75%
Herning
Yield in %
5.25%
6.25%
7.25%
Aalborg
Yield in %
3.25%
4.50%
5.75%
Hjørring
Yield in %
5.00%
6.00%
7.00%
Frederikshavn
Yield in %
6.00%
7.00%
7.25%
6
Source: EDC International Poul Erik Bech, estimates as of Q3 2026
Yield in percent and trends for the next 12 months
Trends in residential rental properties where competition for attractive properties is pushing up yield requirements and increasing interest from both Danish and international investors.
Residential rental properties remain the dominant segment in the Danish investment market and account for approximately two-thirds of the total transaction volume year to date. Strong investor interest is underpinned by continued population growth, limited new-build construction and a persistent shortage of rental accommodation – particularly in the largest cities.
Privatisation remains a key investment theme, supported by a strong owner-occupied housing market. At the same time, demand remains strongest for properties with free rent-setting, whilst interest in well-located OMK properties is rising in line with improved market conditions and an increased focus on long-term, stable investments.
Underlying market conditions continue to point to rising rent levels. Low vacancy rates, high demand and limited supply are driving growth in both Copenhagen and Aarhus,
Omtanken, Virkelund in CoopByen, Albertslund
7
Office Area* (see specifications page 14)
Capital of Denmark
Central Copenhagen
Østerbro, Frederiksberg and Gentofte
Harbour areas
Ørestad
Remaining Copenhagen
Western suburbs
Remaining Zealand
Northern suburbs
North Zealand
East Zealand
West Zealand
South Zealand
Lolland, Falster and Møn
Odense
Other Funen
Southern Denmark
Vejle
Kolding
Fredericia
Esbjerg
Sønderborg
Other South Jutland
Central Jutland
Aarhus
Silkeborg
Viborg
Herning
Northern Jutland
West Jutland
Aalborg
Hjørring
Frederikshavn
Prime Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m
Secondary
Tertiary
Trend
4.00%
4.50%
5.50%
2,750 DKK
2,000 DKK
1,650 DKK
4.25%
4.75%
6.00%
2,500 DKK
1,800 DKK
1,550 DKK
4.00%
4.50%
5.75%
2,850 DKK
2,050 DKK
1,800 DKK
4.75%
5.25%
6.25%
2,150 DKK
1,700 DKK
1,600 DKK
4.75%
5.75%
6.50%
2,050 DKK
1,550 DKK
1,200 DKK
5.50%
7.50%
9.75%
1,500 DKK
900 DKK
700 DKK
5.00%
5.75%
8.75%
1,775 DKK
1,300 DKK
750 DKK
5.50%
6.25%
9.25%
1,300 DKK
1,000 DKK
700 DKK
6,25%
7.25%
10.50%
1,500 DKK
900 DKK
500 DKK
6.75%
8.50%
10.50%
1,150 DKK
700 DKK
400 DKK
Yield in %
7.00%
9.00%
11.00%
Annual market rent in DKK/sq m
900 DKK
700 DKK
400 DKK
Yield in %
7.50%
9.00%
12.00%
Annual market rent in DKK/sq m
875 DKK
650 DKK
400 DKK
Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in %
6.25%
7.00%
8.75%
1,450 DKK
900 DKK
650 DKK
7.00%
8.25%
9.75%
1,200 DKK
800 DKK
450 DKK
6.25%
7.50%
9.50%
1,550 DKK
950 DKK
650 DKK
6.50%
7.75%
9.75%
1,450 DKK
850 DKK
550 DKK
6.50%
8.25%
10.00%
1,350 DKK
850 DKK
500 DKK
7.25%
8.75%
10.00%
1,400 DKK
800 DKK
500 DKK
7.50%
9.00%
10.50%
1,150 DKK
700 DKK
400 DKK
Yield in %
8.00%
9.50%
11.75%
Annual market rent in DKK/sq m
900 DKK
700 DKK
400 DKK
Yield in %
4.75%
6.00%
8.00%
2,000 DKK
1,500 DKK
850 DKK
Annual market rent in DKK/sq m
Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in %
6.25%
7.25%
9.25%
1,350 DKK
700 DKK
450 DKK
6.75%
7.50%
9.25%
1.050 DKK
600 DKK
400 DKK
7.00%
7.75%
9.50%
1.150 DKK
650 DKK
425 DKK
Yield in %
7.25%
8.25%
10.25%
Annual market rent in DKK/sq m
850 DKK
500 DKK
350 DKK
Yield in %
5.75%
6.50%
7.50%
1,400 DKK
900 DKK
600 DKK
Annual market rent in DKK/sq m
Annual market rent in DKK/sq m Yield in %
7.50%
8.50%
11.00%
Annual market rent in DKK/sq m
950 DKK
600 DKK
350 DKK
Yield in %
7.75%
8.75%
11.00%
Annual market rent in DKK/sq m
800 DKK
500 DKK
325 DKK
8
Source: EDC International Poul Erik Bech, estimates as of Q3 2026
Yield in %, annual market rent in DKK/sq m incl. operating expenses and trends for the next 12 months
Trends in Office Properties This trend raises a key question: is a risk premium still justified, or are Danish investors seeing something that foreign investors are overlooking? In Denmark, it is difficult to argue for a significant risk premium. Danish office markets rest on a solid foundation of economic growth, high employment, a knowledge-intensive workforce and easy access to highly skilled labour. At the same time, working from home is less widespread than in several other European markets. This underpins demand for modern and well-located offices. This foundation hardly justifies a premium – perhaps quite the opposite. However, a certain premium may still be rational for international investors due to the market’s size and lower liquidity. Overall, the Danish office market is regarded as robust from an investment perspective.
Transaction volume in the first half of 2026 stands at just over DKK 4.5 billion, roughly on a par with the previous year. Internationally, there has also been growth: according to JLL, one of the world’s largest property consultancy firms, with which EDC Erhverv Poul Erik Bech collaborates, transaction volume in EMEA has grown by 33 per cent from a low of 41.1 billion in 2023 to 54.7 billion euros in 2025. Despite the upturn in EMEA, foreign capital remains limited for Danish office properties. Larger transactions are primarily dominated by Danish pension funds and a few other institutional investors. The absence of foreign capital can be attributed to Danish yield requirements for prime office properties, which are very low in a European context. Foreign investors expect to achieve better risk-adjusted returns in other European metropolitan areas.
Denmark is a highly sought-after investment market for residential property, where demand has pushed initial yields down to a level at which offices – despite being low by international standards – appear quite attractive from a risk-adjusted perspective. For Danish investors, therefore, the office market should be assessed not only in relation to major European cities, but also relative to investment alternatives in the domestic market.
This trend can be illustrated by prime CBD yields in the largest European office markets. At the start of 2022, the initial yield for the best offices in Paris stood at just around 2.5 per cent, whilst Copenhagen stood at around 3 per cent – a spread of approximately 50 basis points. Now, the initial yield in Copenhagen stands at around 4 per cent, bringing it close to yields in some of Europe’s most expensive markets, including Paris and London. This makes it difficult to attract international buyers, who expect a premium compared with the leading European cities.
Available office space as a percentage of building stock
Source: Ejendomstorvet-ED Statistikken, estimates as of Q3 2026
14% 12% 10% 8% 6% 4% 2%
Capital Region of Denmark
Region Zealand
Region of Southern Denmark
9
Central Denmark Region
North Denmark Region
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
0%
Denmark, total
Retail Area* (see specifications page 14) Strøget
Capital of Denmark
Central Copenhagen
Østerbro, Frederiksberg and Gentofte
Harbour areas
Ørestad
Remaining Copenhagen
Western suburbs
Remaining Zealand
Northern suburbs
North Zealand
East Zealand
West Zealand
South Zealand
Lolland, Falster and Møn
Odense
Other Funen
Southern Denmark
Vejle
Kolding
Fredericia
Esbjerg
Sønderborg
Other South Jutland
Central Jutland
Aarhus
Silkeborg
Viborg
Herning
Northern Jutland
West Jutland
Aalborg
Hjørring
Frederikshavn
Prime Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m
Secondary
Tertiary
Trend
4.50%
5.00%
5.50%
21,500 DKK
11,000 DKK
6,000 DKK
5.25%
6.00%
6.50%
4,750 DKK
2,500 DKK
1,800 DKK
5.25%
6.00%
7.00%
4,000 DKK
2,250 DKK
1,350 DKK
5.00%
5.75%
6.25%
2,750 DKK
1,800 DKK
1,500 DKK
5.50%
6.25%
7.00%
2,400 DKK
1,750 DKK
1,500 DKK
5.50%
6.25%
7.50%
3,000 DKK
1,750 DKK
1,050 DKK
5.75%
7.50%
9.25%
2,500 DKK
1,400 DKK
850 DKK
5.50%
6.50%
8.00%
4,300 DKK
1,800 DKK
1,000 DKK
6.00%
7.25%
8.75%
3,400 DKK
1,500 DKK
900 DKK
6.00%
7.25%
8.75%
2,800 DKK
1,500 DKK
1.000 DKK
7.00%
8.50%
9.75%
1,700 DKK
950 DKK
500 DKK
7.50%
9.00%
12.00%
1.300 DKK
750 DKK
500 DKK
Yield in %
9.00%
10.00%
13.00%
Annual market rent in DKK/sq m
800 DKK
600 DKK
400 DKK
Yield in % Annual market rent in DKK/sq m
Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m Yield in % Annual market rent in DKK/sq m
6.00%
7.00%
8.50%
5,000 DKK
2,150 DKK
800 DKK
6.75%
8.00%
10.50%
2,100 DKK
1,250 DKK
500 DKK
6.75%
7.75%
9.75%
2,900 DKK
1,500 DKK
750 DKK
7.00%
8.00%
9.75%
2,000 DKK
1,200 DKK
600 DKK
7.50%
8.50%
10.25%
1,650 DKK
1.000 DKK
550 DKK
7.50%
9.50%
10.50%
2,000 DKK
1.000 DKK
500 DKK
7.50%
9.00%
10.25%
1,800 DKK
1,100 DKK
400 DKK
8.00%
9.25%
10.75%
1,500 DKK
900 DKK
400 DKK
4.75%
5.75%
7.50%
5,500 DKK
2,500 DKK
1.000 DKK
6.75%
7.75%
9.00%
2,800 DKK
1,050 DKK
600 DKK
7.00%
8.00%
10.00%
2,400 DKK
950 DKK
400 DKK
7.50%
8.50%
10.00%
1,600 DKK
750 DKK
400 DKK
7.75%
9.00%
11.25%
2,000 DKK
700 DKK
400 DKK
6.25%
7.50%
8.75%
3,600 DKK
1,800 DKK
900 DKK
7.50%
8.50%
10.50%
1,300 DKK
750 DKK
400 DKK
8.00%
9.00%
10.50%
1,100 DKK
700 DKK
375 DKK
Source: EDC International Poul Erik Bech, estimates as of Q3 2026
Yield in %, annual market rent in DKK/sq m incl. operating expenses and trends for the next 12 months
Trends in Retail Properties The growth in the retail sector is well supported by the rise in real wages. It is therefore to be expected that consumption will continue to rise. This is underpinned by a strong labour market and inflation that is under control. However, there are also risk factors, such as a trade war with the US, which could hamper growth and cost Danish jobs. This is reflected, amongst other things, in consumer confidence – particularly families’ expectations regarding their financial situation in a year’s time – which has been low over the past few years.
Year-to-date transaction volume for the retail sector stands at just over DKK 2.2 billion, which is approximately half last year’s level. The rental market is stabilising, and the long-standing trend of falling market rents, particularly in the provinces, has reversed, which has boosted confidence across the retail sector. In Copenhagen, demand is strongest on the main shopping streets, supported by growing interest from international brands seeking high visibility in prime locations. The retail market is further supported by a marked upturn in tourism, with Copenhagen’s growing international profile continuing to contribute to higher footfall in central urban areas. Outside Copenhagen and Aarhus, traditional high-street shops in town centres are increasingly being converted into food and drink outlets and experience-based venues. This reflects changing consumption patterns and, consequently, trends in demand.
The retail vacancy rate has been broadly stable nationwide and has fallen by 0.1 percentage points since the last quarter to 3 per cent in the third quarter of 2026. Yield requirements are assessed as stable, underpinned by expectations of rising private consumption, whilst there is some risk of falling market rents in certain areas.
Available retail space as a percentage of building stock
Source: Ejendomstorvet-ED Statistikken, estimates as of Q3 2026
5%
4%
3%
2%
1%
Capital Region of Denmark
Region Zealand
Region of Southern Denmark
11
Central Denmark Region
North Denmark Region
Denmark, total
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
0%
Industrial Area* (see specifications page 14) Remaining Copenhagen
Western suburbs
Remaining Zealand
Northern suburbs
North Zealand
East Zealand
West Zealand
South Zealand
Lolland, Falster and Møn
Odense
Other Funen
Southern Denmark
Vejle
Kolding
Fredericia
Esbjerg
Sønderborg
Other South Jutland
Central Jutland
Aarhus
Silkeborg
Viborg
Herning
Northern Jutland
West Jutland
Aalborg
Hjørring
Frederikshavn
Prime Yield in %
Secondary
Tertiary
Trend
5.00%
5.50%
6.25%
1,100 DKK
900 DKK
650 DKK
Yield in %
5.25%
6.50%
8.00%
Annual market rent in DKK/sq m
850 DKK
700 DKK
500 DKK
Annual market rent in DKK/sq m
Yield in %
5.50%
6.75%
8.25%
Annual market rent in DKK/sq m
900 DKK
600 DKK
450 DKK
Yield in %
5.75%
7.25%
9.00%
Annual market rent in DKK/sq m
850 DKK
550 DKK
400 DKK
Yield in %
5.00%
6.25%
9.00%
Annual market rent in DKK/sq m
800 DKK
550 DKK
350 DKK
Yield in %
6.25%
8.50%
10.50%
Annual market rent in DKK/sq m
550 DKK
350 DKK
250 DKK
Yield in %
7.50%
9.00%
11.00%
Annual market rent in DKK/sq m
500 DKK
275 DKK
200 DKK
Yield in %
9.00%
11.00%
13.00%
Annual market rent in DKK/sq m
450 DKK
250 DKK
200 DKK
Yield in %
5.75%
7.25%
8.50%
Annual market rent in DKK/sq m
600 DKK
500 DKK
300 DKK
Yield in %
6.00%
8.50%
10.00%
Annual market rent in DKK/sq m
550 DKK
350 DKK
200 DKK
Yield in %
6.00%
7.75%
9.75%
Annual market rent in DKK/sq m
600 DKK
375 DKK
250 DKK
Yield in %
6.00%
8.00%
10.00%
Annual market rent in DKK/sq m
600 DKK
375 DKK
250 DKK
Yield in %
5.75%
7.50%
8.75%
Annual market rent in DKK/sq m
625 DKK
400 DKK
250 DKK
Yield in %
7.00%
8.50%
10.00%
Annual market rent in DKK/sq m
450 DKK
300 DKK
200 DKK
Yield in %
7.25%
9.75%
11.75%
Annual market rent in DKK/sq m
500 DKK
275 DKK
200 DKK
Yield in %
7.50%
10.00%
12.00%
Annual market rent in DKK/sq m
500 DKK
275 DKK
200 DKK
Yield in %
5.50%
6.75%
9.00%
Annual market rent in DKK/sq m
625 DKK
475 DKK
325 DKK
Yield in %
7.00%
8.25%
10.50%
Annual market rent in DKK/sq m
475 DKK
350 DKK
200 DKK
Yield in %
7.25%
8.75%
10.75%
Annual market rent in DKK/sq m
375 DKK
250 DKK
200 DKK
Yield in %
7.25%
8.75%
10.50%
Annual market rent in DKK/sq m
350 DKK
225 DKK
150 DKK
Yield in %
7.50%
9.00%
12.00%
Annual market rent in DKK/sq m
300 DKK
200 DKK
125 DKK
Yield in %
6.25%
7.50%
9.50%
Annual market rent in DKK/sq m
525 DKK
400 DKK
275 DKK
Yield in %
7.25%
9.25%
11.00%
Annual market rent in DKK/sq m
350 DKK
275 DKK
200 DKK
Yield in %
7.50%
9.50%
11.75%
Annual market rent in DKK/sq m
350 DKK
275 DKK
150 DKK
12
Source: EDC International Poul Erik Bech, estimates as of Q3 2026
Yield in %, annual market rent in DKK/sq m incl. operating expenses and trends for the next 12 months
Trends in Industrial Properties Demand for sale-and-lease-back agreements with long-term leases remains reasonable and is widespread across the country, where the creditworthiness of the companies and the length of the non-termination period are the primary factors determining marketability, whilst the specific location is, to a certain extent, less decisive.
The industrial and logistics segment continues to experience strong demand, with a transaction volume of DKK 3.2 billion in the first half of 2026, although this is significantly below the DKK 6.1 billion recorded by the segment in the first half of 2025. Modern logistics properties close to motorways and other logistics corridors are particularly attractive, whilst properties for light industry near the major cities are also in high demand.
It is difficult to secure suitable sites for logistics properties in the prime locations along Denmark’s major logistics corridors. However, this is primarily a long-term challenge, as there is currently a certain tendency towards an oversupply of modern logistics facilities in both the Triangle Region and the south-western logistics corridor near Copenhagen.
Demand is high for newer, modern logistics properties located close to essential infrastructure such as motorways, particularly along the primary logistics corridors, where development opportunities are simultaneously limited. Demand is also high for light industrial properties, where location around the major cities is the most important factor. This is not surprising, given that an ever-increasing proportion of traditional industrial estates in and around the largest cities are gradually being redeveloped for residential purposes.
The vacancy rate for industrial and logistics properties fell to 3.3 per cent in the third quarter of 2026, a decline of 0.1 percentage points from the second quarter of 2026. As a result, the vacancy rate is now slightly below the average level over the past 20 years. Yield requirements are expected to remain stable over the coming year, as are market rents, although there is potential for geographical variations.
Available industrial space as a percentage of building stock
Source: Ejendomstorvet-ED Statistikken, estimates as of Q3 2026
9% 8% 7% 6% 5% 4% 3% 2% 1%
Capital Region of Denmark
Region Zealand
Region of Southern Denmark
13
Central Denmark Region
North Denmark Region
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
0%
Denmark, total
Definitions Location and condition Yield and rent levels estimates are based on primary, secondary and tertiary categories, where primary is the best and tertiary is the worst. Various variables for each property type have been taken into consideration with regards to determine the facility classes, such as: size, floor plan structure, year of construction, lifts, climate control, cabling infrastructure, staff facilities, customer facilities, parking facilities, building energy rating, ceiling height, general accessibility, general condition of the property, etc. Primary: A property with prime location and class A facilities has the best possible location in an area, the highest standard when it comes to facilities, is modern and ready to move into. This type of property will typically be sold at the lowest yield in the area, have the highest market rent and have a short reletting process. Secondary: Average in terms of location and condition. Yield and rent levels also reflect the average levels for the area. The re-rental options are market compliant and reflect the general market conditions. Tertiary: Poor location for the area, low standard, and outdated. This type of property is expected to be able to be sold at a relatively high yield level, and the rent level is low for the defined area. Similarly, vacancy rates can be expected to be higher than the market average. Yield All yields are initial net yields and are defined as the annualized rent generated by the property after the deduction of estimated annual irrecoverable property outgoings, expressed as a percentage of the property valuation (property valuation is adjusted for the value of rental deposits and prepaid rent). For comparison purposes, it is assumed that all properties are fully let at market-conform conditions. Market Rent All rents are headline rents, in other words, the contracted gross rent receivable, which becomes payable after any tenant incentives have expired. Market rent estimates are expressed in DKK/sq m/year. It is assumed that all properties are let at market-conform conditions.
Residential rental properties Rent levels and net initial yields are stated for residential units with an average size of approximately 80 sq m. 1) Newer residential rental properties are properties that have been occupied after 31.12.1991 and thus covered by the rules on free/market rent according to the Danish Residential Rent Regulation Act section 54 (1, 1). 2) Cost determined rental properties are older residential rental properties that have been occupied before 31.12.1991 and are regulated in accordance with the provisions of the Danish Residential Rent Regulation Act on cost-determined rent. 3) Fully developed older residential rental properties are older home rental properties without further potential for rent increases through modernization pursuant to section 19 (2) of the Danish Residential Rent Regulation Act. Data for available commercial premises The source of available commercial premises is the latest available supply statistics from Ejendomstorvet. Further information about these statistics can be found at ejendomstorvet.dk/statistik/udbudsstatistik. Trends All trends reflect our expectations to the level in 12 months time. The figure is expected to increase The figure is expected to remain unchanged The figure is expected to decrease Note on estimates The valuation of a property depends on many specific factors, including conditions of the lease, the tenant, and the property condition. The estimates cannot be used uncritically in the valuation of one specific property but can serve as input related to the valuation. Reproduction or citation only with acknowledgment of source. While every effort has been made to ensure that the information provided is accurate, EDC International Poul Erik accepts no liability for errors.
* Area specifications Copenhagen City = Copenhagen K ex. harbour areas. Østerbro, Frederiksberg og Gentofte = Østerbro, Frederiksberg and Gentofte municipalities. Harbour area (Nordhavn, Kalvebod Brygge & Tuborg Havn) = Areas located along Copenhagen’s harbour. Remaining Copenhagen = Vesterbro, Nørrebro, Nordvest, Valby, Sydhavn (ex. harbour areas), Brønshøj, Husum, Vanløse, København S (ex. Ørestad and harbour areas), Kastrup and Dragør municipalities. Western suburbs = Hvidovre, Rødovre, Glostrup, Brøndby, Albertslund, Vallensbæk, Ishøj, Høje Taastrup, Ballerup and Herlev municipalities. Northern suburbs = Lyngby, Holte, Farum, Birkerød, Gladsaxe, Rudersdal and Furesø municipalities.
North Zealand = Gribskov, Helsingør, Allerød, Hillerød, Egedal, Fredensborg, Halsnæs and Hørsholm municipalities. East Zealand = Greve, Køge, Lejre, Roskilde and Solrød municipalities. West Zealand = Holbæk, Kalundborg, Odsherred, Ringsted, Slagelse and Sorø municipalities. South Zealand = Faxe, Næstved, Stevns and Vordingborg municipalities. Lolland, Falster and Møn = Guldborgsund and Lolland municipalities. Other Funen = All municipalities at Funen ex. Odense. Other South Jutland = Billund, Fanø, Haderslev, Tønder, Varde, Vejen and Aabenraa municipalities. West Jutland = Skive, Struer, Holstebro, Thisted, Morsø and Ringkøbing-Skjern 14 municipalities.
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EDC Poul Erik Bech’s Research & Analysis department prepares customised analyses for major institutional investors as well as private investors. We have solved assignments for PFA, PensionDanmark, PenSam, Coop, COPI Group and Salling Group with analyses, including due diligence on the buyer’s investigation of the seller’s properties prior to the completion of the transaction. The assignments cover, among other things: • Commercial Due Diligence • All relevant aspects of project development and the purchase and operation of investment and user properties • Analyses for e.g. lawyers who need data for a housing court case • Analyses of rent levels and realised trade prices • Analyses of the relationship between supply and demand in major cities as well as smaller provincial towns • Analyses of housing stock development by ownership in subjective, specific, defined geographical areas
Joseph Alberti Head of Research
Niclas Holm Research Manager
joal@edc.dk +45 5858 7467
niho@edc.dk +45 5858 8784
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