Market in Minutes: Copenhagen Residential Q3 2025

Copenhagen and Frederiksberg's residential market faces a pronounced housing undersupply as development activity slows while population continues to grow, with approximately 1,600 new housing units expected annually against a population growth rate requiring around 4,000 residents, exerting upward pressure on both rental and owner-occupier values. Market data shows rental growth accelerating in the new-build segment with smaller flats in central Copenhagen achieving approximately 3,300 DKK/sqm/year, while owner-occupier flat prices have increased 63% since early 2023, with the investment market regaining momentum driven by low vacancy rates, rental growth, and initial yields ranging from 3.50–3.75% for prime locations to approximately 4.0–4.50% in secondary markets and the Copenhagen environs.