Status of the commercial property market in the country’s four largest cities

CityFact provides an unique insight and comprehensive area-specific knowledge about 17 Danish cities and areas, including the four largest cities. The property market is affected by demographic trends, which is why local insight is crucial in a volatile investment market. Explore key figures from Copenhagen, Aarhus, Odense and Aalborg with information on vacancy rates, rent levels, yield requirements, age distribution and population trends.

With up-to-date market data, local insights and reliable forecasts, CityFact provides analysis reports for investors, whether their focus is residential rental properties, offices, retail or industrial. CityFact compiles key data and analyses from individual cities and areas across the country into one easily accessible format.

Joseph Alberti, Head of Research at EDC Poul Erik Bech, says: “CityFact provides investors and decision-makers with a stronger foundation for making informed choices. The figures are based on a wide range of both qualitative and quantitative indicators. They are prepared in close collaboration with our local business centres, offering unique insight into how the market looks in a specific city or area.”

”The latest market figures consist of a wide range of data on, among other things, vacancy rates, rent levels, yield requirements, as well as population development, age distribution and relocation activity in 17 localised areas and cities. The commercial property market is dynamic and complex, which is why we update the figures twice a year, so that both our commercial real estate agents and brokers are equipped to provide the best possible advice and that our clients can make decisions based on the most up-to-date and informed insights,” says Joseph Alberti.

Investor activity is picking up in Copenhagen”Despite yield requirements remaining relatively high compared to previous years, we are seeing clear signs of market stabilisation. There is a noticeable increase in activity among professional investors, both Danish and foreign, particularly in newer residential rental properties and office buildings located near public transport with strong tenants. The retail market, which has faced several years of challenges due to changing consumer behaviour and rising vacancies, is now showing signs of recovery. The transformation of the capital’s former industrial areas continues to reduce the supply of industrial and logistics properties, resulting in low vacancy rates, ongoing upward pressure on market rents, and downward pressure on yield requirements.”

Urban development drives investment in OdenseOdense is the main growth engine of Funen and is currently experiencing significant development. This is partly due to urbanisation, with an increasing number of people moving to larger cities, which points to continued positive population growth in Odense. Lars Duus, Partner at EDC Poul Erik Bech Fyn, says:

“The residential rental market in Odense is characterised by high development activity in several parts of the city, where student, family and senior housing is being built. As a university city, Odense has also created a popular and attractive working environment, which is expected to grow further with the completion of the upcoming super hospital. The city is seeing new office areas emerging, which has led to a rising vacancy rate within the office segment. The retail market in Odense remains stable, while industrial and logistics properties are in high demand due to the city’s location along the E20 motorway and the limited supply of modern facilities.”

Strong demand for office and residential property in AarhusDriven by demographic trends and a population increase of more than 14% since 2015, with continued positive growth expected towards 2035, Aarhus remains one of the strongest markets in Denmark. Kent Nielsen, Partner and Director at EDC Poul Erik Bech Aarhus, explains:

“Aarhus continues to be characterised by low vacancy rates and stable demand, particularly within residential rental properties, where vacancy is among the lowest in the country. The supply of modern, move-in ready offices is limited, and new space is absorbed quickly once completed. Aarhus’ status as a university city and its ongoing urban development create favourable conditions for investment across all segments, with project developers and funds pursuing longterm strategies remaining especially active in the market. The main challenge is the lack of development sites with approved local plans.

High development activity in AalborgAalborg is experiencing strong demographic growth driven by extensive development activity, a vibrant business community and a popular student environment. These factors help attract qualified labour to the city. Frank Jensen, Director and Partner at EDC Poul Erik Bech Aalborg, says:

”Historically, Aalborg has been characterised by an oversupply of housing, but population growth has helped to balance the supply and the demand for residential rental properties is reasonable. The office market in Aalborg is characterised by solid demand and low supply with potential for more office space around the attractive harbour areas and near essential infrastructure. The retail market is characterised by reasonable demand, especially grocery and box stores with long non-terminable contracts, while the demand for industrial and logistics properties has been increasing over the past few years.”

More informationJoseph Alberti, Head of Research, EDC Poul Erik Bech • joal@edc.dk • +45 5858 8564

Michael Thodsen, Partner and Commercial Real Estate agent, EDC Poul Erik Bech Copenhagen, mit@edc.dk • +45 5858 8378

Kent Nielsen, Partner and Director, EDC Poul Erik Bech Aarhus • keni@edc.dk • +45 5858 8670

Lars Duus, Partner at EDC Poul Erik Bech Funen, duus@edc.dk • +45 5858 8397

Frank Jensen, Director and Partner, EDC Poul Erik Bech Aalborg • frje@edc.dk • +45 5858 8449