A property expert has predicted that prices will continue to rise in the Danish capital of Copenhagen.
When quizzed on the state of the city’s property market by Reuters, Ivar Tollefsen (who has a portfolio estimated at $7.4 billion) responded that property prices in Copenhagen should continue to rise in conjunction with population growth.
“The economic fundamentals are good, and the population growth in Copenhagen will support rising rental values and market values.”
In the last 12 years the population of the city has increase by 23% and, according to Denmark’s national statistics office, that trend is likely to continue.
Despite such capital growth, property prices in Copenhagen have remained low when compared to other Scandinavian cities. One reason for this could be the geography of the city, as its location means it has the opportunity to spread out in several different directions, therefore relieving some of the pressure on the city centre.
Neither Stockholm and Oslo have the same opportunity to spread geographically. “We believe this puts higher pressure on property prices in Stockholm and Oslo,” added Tollefsen, who has been investing in Copenhagen for the past three years.
Prices for apartments in the city have grown by 10% each year lately – and it has been predicted that this trend is likely to continue. Figures from Nykredit, Denmark’s biggest mortgage lender, have suggested that apartment prices will rise by almost 9% in 2017, nearly 5% in 2018 and just over 3% in 2019.