The Danish Economic Council forecasts a continued rise in house prices, driven by a strong job market, higher incomes, and low interest rates. According to the council’s latest report, house prices are expected to increase by 4.25% this year and 3.25% next year, adjusted for inflation.

This positive outlook follows a similar assessment from the government’s Economic Survey, indicating that homeowners can anticipate significant growth in their equity. On average, homeowners could see an additional DKK 6,900 per month in equity, assuming they do not take out further loans.

While rising house prices benefit existing homeowners, they pose challenges for potential homebuyers, particularly first-time buyers in expensive areas. Experts emphasize that the rising prices make it increasingly difficult for first-time buyers to enter the housing market.

The Economic Council acknowledges the uncertainty in the global economy due to factors such as the trade war. Despite this uncertainty, the Danish housing market remains robust, defying the general decline in consumer confidence. This is reflected in the high level of activity in house purchases and housing investments.

If the Economic Council’s forecast holds true, an average house costing DKK 2.42 million at the end of 2024 could increase in value by approximately DKK 105,000 in 2025 and DKK 81,000 in 2026. This would result in a total increase of DKK 186,000, bringing the average house price to DKK 2.60 million by 2026.

Experts agree that homeowners can expect several years of rising prices in the housing market. The Economic Council anticipates continued increases in house prices towards 2030, despite expectations that long-term interest rates are nearing their lowest point.