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NewsLetter October 2010
21-10-2010: Latest trends and market indicators, Danish commercial property market
For the first time in recent times, it is today possible to achieve a direct yield exceeding the rate of financing when investing in older Danish residential rental properties subject to cost-regulated rent control.
The risk of vacancy or declining rents associated with such properties is virtually non-existent, and cash-flow security is very strong as a result. In recent months, a positive yield spread on such investments has therefore whetted in particular private investors’ appetite for such properties considerably.
Thanks also to the interest rate level, well-located office properties offering high cash-flow security are in demand, primarily with leading institutional investors. Finally, we are pleased to note the re-emergence of a market for more opportunistic investments, driven by international investors in particular.
Although the letting market is yet to see a positive trend in vacancy or rents, transaction activity is therefore picking up in the Danish investment property market, raising the hope that the market is on the road to recovery.
In our NewsLetter October 2010, we also describe the new capital requirements imposed on pension funds and the renewed amendment of Danish retail planning regulations.
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 October 2010:
 NewsLetter October 2010
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