The decrease follows a year of record-high transaction activity in 2021 and subsequent turmoil due to war and economic uncertainty. 

The annual result reflects a transaction market that stalled ensuing the Russian invasion of Ukraine, rising inflation and general economic uncertainty. The activity drop entailed that turnover was cut in half compared to 2021, while costs remained high as the company had made organisational changes in preparation for further growth following the high activity in 2021 and early 2022. The combination of a rapid drop-in activity and highly irreversible costs has had a direct impact on the bottom line

- In return, the portfolio offers attractive long-term returns and excellent basic terms, as it generates a stable rental income. The Copenhagen flat market is resilient, with a growing population and a continuous demand for housing. Market uncertainty does not change the fundamental need of having a place to live. 

Buyers for niche products 
At Savills Denmark we have observed that more players in the market are increasing their exposure to niche products. These markets typically have different dynamics and behavioural patterns as well as a narrower competitive situation compared to the traditional segments.

- The conditions for investing today are different from what we've seen in the last few years. Accordingly, it's also a different business case you put in the market. Right now, it’s a waiting game where we carefully analyse market reactions and price developments. So far this year, the number of larger transactions has been significantly lower than what we have seen in the last couple of years. However, this transaction confirms that there is still a market for transactions of a certain volume. 

Savills Denmark thanks all the parties involved for excellent co-operation driven by competent and dedicated advisors.