The Danish Property Federation's Market Statistics - vacancy (October 2017)

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Ejendomsforeningen Danmarks markedsstatistik – tomgang, oktober 2017

The Danish Property Federation Market Statistics

October 2017

WEB REPORT VACANCY

Results • Economic vacancy remains at a low level • Office vacancy has decreased five quarters in a row • Retail increases 0.2 percentage points but is 7.3 percentage points below the peak in January 2013 • Still low vacancy for residential

The end of 2017 establishes a solid foundation for 2018 After a strong year for investment properties and with the prospect of a solid close of 2017, the foundation for the Danish economy looks strong in the time to come. Although the expectations for the investment market are peaking in 2017, as well as the expectations for the coming years’ average return on investment properties seems to decrease a little, the industry still has positive expectations for the future . The demand for real estate is offset by increased construction. According to a business cycle analysis from the Danish Construction Association from October

2017, a small increase is expected within all sectors in commercial construction. Employment within real estate development is expected to increase with approximately 20 percent in the period from 2016 to 2019. Initiated commercial construction is also expected to increase from 2.2 million square meters in 2016 to 2.7 million square meters in 2019. The consumer confidence, that is compiled by Statistics Denmark, is also positive although there is a conservative decrease over the last three months from August to October 2017. Furthermore, Statistics Denmark estimate the unemployment rate which has been stable in 2017 with a small decline from July to August.

Table 1. Vacancy rates in October 2017 Economic vacancy

Office Retail

Spatial vacancy

Vacancy (percent)

Quarterly change (percentage points)

Annual change (percentage points)

Vacancy (percent)

Quarterly change (percentage points)

Annual change (percentage points)

11.2

0.0

-1.0

12.6

-0.4

-1.1

6.8

0.2

-1.5

6.5

0.3

-1.4

11.1

0.5

-0.8

10.8

0.2

-1.0

Residential

3.5

0.1

0.7

3.2

0.1

0.5

Other commercial

7.9

0.4

7.3

-0.7

Total

8.3

0.0

9.3

0.3

Industry

-0.7

-0.4

Source: The Danish Property Federation. Rem.: The Vacancy rates for all sectors also include actual annual rent and space for other commercial and secondary spaces. Published by

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