CBRE's Denmark Real Estate Market Outlook 2019 dicusses the key trends that will affect the Danish CRE market over the coming years.
Economic Outlook: Denmark and the European economy have lost momen-tum built up in 2017 but are still growing at a rate above its 15-year average, and this should continue into 2019 and 2020. Denmark is expected to grow at 1.8% in 2019, placing itself above the average in the Euro area.
Capital Markets Outlook: The Danish investment market is expected to remain strong by historical standards in 2019, but with a moderate decline compared to 2018.
Office Outlook: The Danish office market is expected to see positive rate of growth in 2019, backed up by healthy occupier fundamentals, prospects of economic growth and expansion in office-based employment.
Retail Outlook: 2019 will see further negative headlines and scrutiny of the retail sector. There are undoubtedly structural issues that are causing turbulence for both occupiers and landlords, and further casualties are possible.
Residential Outlook: With affordability and loan-to-income ratios strictly regulated by the Danish Financial Supervisory Authority, house prices are approaching the limit that current incomes and credit conditions can support. This situation is most pronounced in Copenhagen and Aarhus.
Industrial & Logistics Outlook: Market dynamics for logistics real estate remain strong, and tight market conditions are expected to persist throughout 2019. Both tenants and landlords need to embrace technology in order to improve and remain competitive.