Real Estate in Denmark: where rents are rising and how yields are shifting

Denmark’s property market is approaching the end of 2025 with stable rental levels and moderate yields across all key segments — from residential and office real estate to industrial assets and logistics, noted in the Colliers Property Market Indicators report. Experts point to the gap between major cities and regional areas, as well as clear differences between prime and secondary assets.

Residential sector: peak levels in central Copenhagen

Copenhagen’s residential market maintains the highest rents in the country. In Copenhagen K and Frederiksberg C, premium housing reaches 2,575 DKK (€345) per sq m per year, with initial yields at 3.75%. In the secondary segment — 2,175 DKK (€291) and 3.88% respectively. A similar level is recorded in the coastal districts of Nordhavn, Sydhavn and Islands Brygge.

Further from the centre, rents gradually decline. In Østerbro, Nørrebro, Vesterbro and parts of Frederiksberg, the level is 2,475 DKK (€332), with yields of 3.75–4%. In more distant districts — Valby, Vanløse and Brønshøj — rents fall to 2,325 DKK (€312), while yields rise to 4–4.25%. In northern and western suburbs, rents range between 2,025–2,275 DKK (€272–€305), prime yields stand at 4.25–4.5%, and secondary yields at 4.5–5%.

In major Zealand cities — Roskilde, Næstved, Køge, Hillerød and others — rents stand at 1,675–1,925 DKK (€225–€258), with prime yields at 4.5–5.13%. In Central and Northern Jutland, rents are 1,300–1,800 DKK (€174–€241), with yields of 4.13–5.63% for prime assets and up to 6–6.25% for secondary.

Experts clarify that these are gross yields, excluding maintenance, taxes and utilities. Actual profit is usually a couple of percentage points lower — from around 2% to 4% at peak.

Offices

The gap between the capital and other regions remains wide. In Copenhagen’s central business district — around City Hall Square, Central Station, Holmens Kanal and Kongens Nytorv — prime offices cost around 2,350 DKK (€315) per sq m with a 4% yield. In the “new” business clusters — Nordhavn, Postbyen, Kalvebod Brygge and Carlsberg Byen — rents reach roughly 2,300 DKK (€308), with yields at 4.13%. In other parts of the capital — around 2,000 DKK (€268) and 4.25%.

In the suburbs, rents are lower — from 1,250 to 1,800 DKK (€168–€241), and yields range between 5–5.75%. The gap widens in regional areas: in central Aarhus, rents stand at about 1,750 DKK (€235) with a 5% yield, while in other cities of Central Jutland — 1,275 DKK (€171) and 6%–8.5%.

After expenses, Denmark’s office yields generally range from 2% to 6%.

Street retail and large retail formats

The country’s main shopping street — Strøget — retains its status as the absolute price peak. Premium premises on its upper stretch reach 22,000 DKK (€2,948) per sq m, with yields near 4%. More accessible zones are valued at around 11,500 DKK (€1,541), with returns of 5%. In the rest of central Copenhagen — from 5,000 to 8,000 DKK (€670–€1,072) — yields range from 5% to 5.75%.

Regional centres show far lower levels: in Aarhus — 4,500–5,500 DKK (€603–€740), in Odense — about 4,650 DKK (€624), in Aalborg — 3,700 DKK (€498). Yields there are higher: 6–7% for prime assets and 8–9% for secondary.

Large retail parks and formats near major transport hubs usually command 1,100–2,000 DKK (€148–€268) per sq m. In Copenhagen’s suburbs, profitability stands at 6–6.5%, while in regional areas it reaches 7–8%. Net yields typically range from 2% to 6%.

Industrial real estate and logistics

In the light industrial segment in Greater Copenhagen within Ring 4, prime rents reach around 800 DKK (€107), with yields of 5.5%. Southwards — along the Køge Bugt motorway — rents decrease to 700 DKK (€94), while yields climb to 7.5%. In other parts of Jutland, prime rents range from 350–475 DKK (€47–€64), with returns between 7% and 8.5%. Actual performance varies from 3.5% to 6.5%.

Modern logistics complexes continue to see steady demand. Within Ring 4, rents reach 850 DKK (€114) with yields of 5%. In suburban areas — 675–700 DKK (€91–€94) and 5–5.25%. In regional hubs — 400–525 DKK (€54–€70) with yields of 6–7% for prime assets and up to 8.5% for secondary. Net yields are estimated at 3–6.5%.

Outlook

The market remains stable, and no major shifts in rental levels are expected in suburban and regional cities across most segments. Yields in key locations, according to Colliers, will stay at current levels or decline further. For the residential segment and offices in the capital, analysts allow for additional rental growth — in both new projects and mid-range stock. In central Copenhagen’s retail sector, rents may rise across a substantial share of prime premises. In the light industrial segment, Colliers forecasts growing demand for high-quality assets within Ring 4. Similar trends are expected in logistics.

Analysts at International
Investment note that the outlook demonstrates the resilience of Denmark’s market while underscoring a structural issue: high liquidity in capital-city assets gradually pushes yields down and limits opportunities for new investors. Regions, on the other hand, appear attractive in terms of yields but face limited demand and low liquidity. The gap between the capital and the rest of the country is widening, pointing to a long-term imbalance.