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NewsLetter June 2009
18-06-2009: Latest trends and market indicators, Danish commercial property market
So far, the Danish market for commercial and investment property has seen only moderate activity in 2009. Although a number of financially strong institutional and private investors are in the market to make acquisitions, the mismatch has been too pronounced between the price expectations on the buyerside versus the sellerside.
Moreover, even for quite serious and financially strong investors, there are only limited possibilities of procuring financing for property investments.
Irrespective of various ‘bank packages’, we are hardly likely to see any material improvement in financing options within the foreseeable future.
On the other hand, we are seeing an accumulated demand for transactions, which in all probability will cause activity to pick up in the investment property market in the months ahead, when prospective sellers acknowledge that we are not about to witness the return to price levels matching those of recent years, and when prospective buyers acknowledge that it is not reasonable - in view of the current low interest rates - to expect a further substantial increase in net initial yields on property investments with great cash flow security.
In our NewsLetter June 2009 we also describe the latest trends in the commercial property market, including the consequences of the new VAT rules for residential new construction.
This NewsLetter includes a survey of property market indicators for rents, yields and vacancy rates in office, retail and industrial/logistics property in Greater Copenhagen, Aarhus and the so-called Triangle Region (Fredericia, Vejle and Kolding). This survey may also be downloaded separately.
Reproduction or citation only with express acknowledgement of source.
NewsLetter June 2009:
 NewsLetter June 2009
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