The Danish Property Federation Market Statistics – vacancy
April 2018
• Economic vacancy has seen the largest annual decline since April 2006 of 1.1 percentage points • Decline in vacancy entails DKK 2 bil. increase in returns since 2015 • 12 percent increase in office employment since 2009 improves vacancy • In April 2018, retail has the highest quarterly decrease in vacancy
WEB REPORT VACANCY
Lower vacancy due to better conditions The decrease in vacancy continues the positive development in April 2018. On a national level the vacancy is 7.7 percent which approaches the average of seven percent since 2000. Compared to April 2017, the vacancy level is 1.1 percentage points lower today being the largest annual vacancy decrease since April 2006. The Danish Property Federation estimate that vacant rental properties cost approx. eight billion DKK a year. Although we still see considerably lost rental incomes associated with the present vacancy level, the annual lost income for owners of investment properties has decreased by two billion DKK since July 2015.
Vacancy of 7.7 percent costs 8 billion DKK every year.
Increased office employment improves vacancy The results are consistent with the favorable conditions that still characterize the market.
Figure 1. Vacancy rates in April 2018 10.6
10.2
8.3
7.7
6.1 4.1
Office
Retail
Industry
Residential
Other commercial
Total
Change in percentage points
Change in percentage points
Change in percentage points
Change in percentage points
Change in percentage points
Change in percentage points
Quart.
An.
Quart.
An.
Quart.
An.
Quart.
An.
Quart.
Quart.
An.
-0.3
-1.6
-0.4
-1.6
0.3
-1.5
0.0
0.8
0.8
-0.2
-1.1
An.
Source: The Danish Property Federation Market Statistics. Note: The Vacancy rates for all sectors also include actual annual rent and space for other commercial and secondary spaces.
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