How Much Did House Prices Increase in Denmark Last Year?
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Loading... - Martin Frank
- 17 Feb 2025
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In 2024, Denmark experienced a notable increase in property prices, with house prices rising by an average of 5.2% and apartment prices seeing an even more significant increase of 7% nationally. These figures reflect a robust performance across all areas of the country, as reported by real estate media Boligsiden.
The housing market concluded 2024 on a strong note, buoyed by several favorable economic factors. According to economist Jeppe Juul Bore from Arbejdernes Landsbank, the market benefited from a "tailwind" created by reduced interest rates, a strong labor market, and increased purchasing power for many Danes due to wage increases and low inflation.
Despite the introduction of a property tax at the beginning of 2024, which initially raised concerns about its impact on apartment demand, prices continued to rise. Louise Aggerstrøm, an economist at Danske Bank, noted that by spring, the anticipated negative effects had dissipated, leading to apartment prices exceeding their highest levels from 2022.
The data indicates that a typical house of 140 square meters is now approximately 120,000 kroner more expensive than it was a year ago, while an 80 square meter apartment costs about 190,000 kroner more on average.
The impact of these price increases varies among individuals. For many homeowners, the rise in property values represents a significant increase in equity. However, for prospective buyers, it translates to higher costs when purchasing a home.
Looking ahead, Bore predicts that the housing market in 2025 is likely to see similar price increases, suggesting continued strength in the Danish real estate sector.
