Denmark real estate market expected to see steady growth in activity

Denmark real estate market expected to see steady growth in activity

Activity in the investment and office markets in Denmark is increasing, with industrial and logistics to follow later in the year while the retail market continues to see low tenant demand, according to real estate analysts.

Exports are expected to be the main driver of economic growth in Denmark and given that their most important trading partners, Germany and Sweden, experienced healthy growth rates in 2010, the country is expected to see steady growth over the next few years, says the latest market update from Colliers International.

It reports that the investment and office markets have showed the greatest signs of improvement and activity so far this year. Interest from both domestic and foreign investors has started to pick up, particularly from Swedish and Norwegian investors who are looking at industrial and logistics properties in secondary locations as well as larger mixed use portfolios.

Vacancy rates for office space are decreasing throughout the country, with the national vacancy rate estimated at 7,7%.

The retail market continues to be a tenant’s market with the vacancy rate currently standing at around 5,7%. It is still retail chains, both Danish and foreign, who dominate demand for retail premises. Demand is clearly higher than a year ago.

Source: http://www.propertywire.com/news/europe/denmark-commercial-property-growth-201107075337.html