Copenhagen’s housing market is experiencing a surge in prices, particularly for condominiums, driven by a reduced supply of available properties. According to data from Finans Danmark for June, potential homebuyers in Copenhagen and its surrounding areas should anticipate higher prices compared to last year. The limited selection of available homes is contributing to this upward trend.

In Copenhagen Municipality, the average asking price for a condominium reached DKK 73,672 per square meter in June. This marks a substantial 12.9 percent increase from the previous year and a 0.14 percent increase from the previous month, setting a new record for asking prices for condominiums in the capital.

Peter Jayaswal, Deputy Director of Mortgage Credit, Property Finance and Social Transition at Finans Danmark, attributes the rising prices to a strong labor market and limited supply, despite global uncertainty and low consumer confidence. He notes that even when adjusted for inflation, real asking prices are at an all-time high in the city.

The number of homes for sale in the capital has decreased over the past year for both condominiums and detached and terraced houses. Brian Friis Helmer, personal economist at Arbejdernes Landsbank, points out that the choices for potential apartment buyers in major cities have significantly decreased.

While the supply remains higher than during the peak of the pandemic, the pace of housing transactions is brisk, leading to fewer properties remaining on the market. Helmer anticipates that transactions will remain at their current level, with further, albeit more moderate, price increases expected in the future.