1. High Yield on Commercial Real Estate
Yield on Commercial Property is higher than in most European Countries and Copenhagen is the cream of the crop.
Enjoying around 1% higher than in Paris and Munich and up to 2% more than London.
For this and the other reasons below Denmark is an excellent choice for the astute property investor particularly in the commercial sector.
2. Economical Transaction Fees
Denmark offers extremely attractive transaction costs for Commercial Real Estate. Costs are approximately 1-2% of sale price as opposed to 5-6% as found in many other major cities in Europe.
3. Political and economic stability
“Denmark is also one of only a handful of countries in the world to continue to have an AAA credit rating from the three main ratings agencies, Standard & Poor’s, Moody’s and Fitch”.
Source fDi Intelligence June/July 2018
They continue – “Foreign investors are attracted to Denmark’s real estate market because of the country’s political and economic stability.”
Even during (and following) the global financial crisis Denmark weathered the financial storm remarkably well. The national debt is low and the economy is less volitile than most other European cities. There is a steady increase in both hotel development and occupancy rates are well above the European average particularly in Copenhagen.
4. Low Borrowing Costs
Denmark can also boast some of the lowest mortgage rates in Europe as they employ a uniquely designed mortage system for the first 60% of the properties value. At the time of writing this article the annual interest rate is 0.8%-1.5% compared with a much higher rate up to 2.5%+ in many other EU capitals.
5. Commercial Development Opportunities
“Copenhagen looks set to continue growing strongly, as more and more people want to visit the city – and to live there.” Source: fDi Intelligence June/July 2018
There are many new expansive urban development areas in Copenhagen and other cities within Denmark. Opportunities under development and regeneration include commercial harbours and industrial estates stylishly transformed to well planned and designed residential and business areas with public facilities to attract growth with many having a focus on sustainable ecological strategies.