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NewsLetter October 2007
24-10-2007: In Denmark the effects of the 'sub-prime' crisis are marginal.
This summer saw brisk activity in the Danish property investment market. In particular, a series of very large single-property and portfolio transactions were concluded, including 12 transactions each worth in excess of DKK 500m, with a total investment volume of some DKK 16bn.
Repercussions of the ’sub-prime’ crisis have become manifest in several investment property markets abroad. Major transactions have been postponed, transaction volumes have plummeted and the banks’ propensity to lend has in some markets greatly diminished.
In the Danish market the effect has so far been insignificant. Although this picture may of course change if conditions in the international loan markets are not back to normal within the foreseeable future, Sadolin & Albæk believes there to be only a relatively modest risk of a decline in the prices of commercial and investment properties. Demand for commercial space continues to be strong, rent developments are positive, and a deeper crisis in the international financial markets may prompt a fall in interest rates that could make property investment returns even more attractive.
In our NewsLetter October 2007 we also describe the latest trends in the commercial property market, including the office rental market and the Copenhagen hotel property market, which is prospering.
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 2007:
 NewsLetter October 2007
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