Especially foreign capital is searching the market for attractive Copenhagen investment opportunities. Youth housing has gained further momentum due to intense letting demand from young people, domestic and foreign alike.

The Copenhagen housing market remains characterised by a strong demand and an exceedingly limited supply. The mismatch between supply and demand creates favourable conditions for investors in the multifamily segment, who enjoy high occupancy rates and record high rent levels. Over time, these factors have contributed to multifamily properties becoming the preferred segment for real estate investors. Despite the currently increasing construction prices, more investors and developers are interested in developing newbuild. It is, however, likely that some smaller development projects will be put on hold as long as the prices on building materials and energy continue to rise rapidly.

PBSA is a hot commodity
In recent years, Purpose Built Student Accommodation (PBSA) has experienced significant tailwind due to the intense letting demand from students and young people.

We have registered an increasing number of young people who come to Copenhagen from abroad, and who are likely to enrol in an educational institution. At the same time, we see a decrease in the number of foreigners, who leave the Danish capital. This development may further strengthen the momentum in the Copenhagen youth housing market, as both Danish and international students are looking for student housing in the capital.