Copenhagen’s real estate market is reaching unprecedented heights as the average price per square meter in the city’s apartments has doubled over the past ten years. Recent data from Boligsiden confirms that record house prices are now the norm in Denmark’s capital—a trend driven by low interest rates, robust employment, and significant household savings.
A decade of price increases
The average square meter price of apartments in Copenhagen reached 56.637 Danish kroner (around 7.600 euros) in January. Over the past year alone, this price has surged by eight percent. The rapid growth was notably accelerated during the COVID-19 pandemic, which provided the momentum for a market that shows no signs of slowing down.
Birgit Daetz, housing economist and communications director at Boligsiden, explained:
“The falling interest rate makes it possible for more buyers to realize the housing dream, while we continue to have generally high employment and solid savings in Danish households,” said Birgit Daetz.
Economic factors and market speculation
Low interest rates have played a crucial role in enabling more buyers to enter the market. With steady employment levels and robust savings, many households are now able to pursue homeownership despite escalating costs. However, rising prices have also sparked concerns over property speculation and the increasing prevalence of short-term rentals, such as Airbnb. These factors have contributed to the housing crisis that is becoming common in major European cities, prompting local authorities in Copenhagen to consider stricter regulations on platforms like Airbnb, as we talked about here.
Challenges for expats and young momebuyers
While Copenhagen is celebrated for its quality of life, it is facing criticism on the international stage. Data from InterNations reveals that in the 2024 expat community index, Copenhagen ranks 38th out of 53 cities.
According to InterNations, “Copenhagen is considered one of the worst cities to settle in and feel at home in the world, while Malaga and Mexico City are ranked among the best.” These findings underscore the mounting challenges for young buyers and international residents who struggle to break into an increasingly expensive market.
A growing European trend
The soaring house prices in Copenhagen are not an isolated phenomenon. Across Europe, many cities are grappling with similar challenges—driven by real estate speculation, the surge of short-term rentals, and an overall increase in demand. As policymakers balance market growth with the need for affordable housing, the situation in Copenhagen serves as a stark example of the broader crisis affecting urban centers.
