Should You Invest?
Denmark often enjoys good summer weather and a large proportion
of the local population traditionally chooses to holiday or weekend
along the country's North Sea coast. The area is also becoming
increasingly attractive to overseas tourists who are looking for
alternatives to Mediterranean destinations. Therefore, cottages in
coastal locations can offer both an attractive second-home option
and viable buy-to-let purchases.
- Denmark is one of the world's thriving business hubs and was
ranked top of the 2008 Economist Intelligence Unit's Global
Business Environment rankings as the world's best place to do
business in the next four years.
- Geographically it is also well placed to conduct business with
both established and emerging European markets. Many of the
world's biggest companies have their Nordic headquarters in the
Copenhagen region.
- The Danish infrastructure and transport links are also of the
highest standard with four airports offering good international
connections with the UK, northern and Eastern Europe, and the
Baltic states.
- With free trade and movement between all Scandinavian countries
there is a great deal of mobility amongst the populations in this
corner of Europe which leads to a healthy demand for high quality
properties to let.
- Given the high property prices in and around Copenhagen (which
attracts the lion's share of migration) this is a potentially
prosperous buy-to-let market.
Rental Yields
Rental yields in Denmark are on the low side but property
prices are falling and within the last two years the number of
properties on the market have doubled from 30,000 – 60,000. This
therefore means that the increasing numbers of people selling their
houses may look to the rental market for accommodation. This sector
therefore has the potential to grow meaning rents may increase in
the future. Property here is especially popular with European
investors looking to have their business in a central location so
rental yields for business property in city centres such as
Copenhagen are likely to be the strongest.
Price History
The main factor driving increases is the central location of the
country within Europe, the high standard of living at reasonable
costs, a strong and stable economy and low transaction costs.
Property prices in Denmark are reasonably cheap. A three bedroom
house in Copenhagen would cost you around $350,000 (£240,000). A
three bedroom house in provincial towns or rural locations would
cost around $175,000(£120,000). A two bedroom apartment in
Copenhagen would cost from $130,000 (£90,000) and a two bedroom
apartment in provincial towns or rural locations would cost around
$75,000(£50,000).
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