Location on the map, climate, economy
Denmark is a Scandinavian country in Northern Europe, part of the Kingdom of Denmark. Situated southwest of Sweden and south of Norway, it shares a land border with Germany. Denmark is a founding member of NATO, the Nordic Council, the Council of Europe, the Organisation for Economic Co-operation and Development, and the United Nations; the country is also part of the Schengen Area.
The maritime climate is characterized by mild winters, cool summers, and long transitional seasons. The average January temperature in Denmark is 0°C, while from July to August, the average temperature is 16-18°C. Strong westerly winds blow most of the year.
Denmark has a highly developed economy, with industries, agriculture, transportation, and services. Denmark ranks third in the world in terms of economic independence. The country ranks first globally in social mobility, is among the leaders in income equality, has one of the highest nominal GDP per capita in the world, and one of the highest personal income taxes in the world.
Denmark's New Build Market
New builds in Denmark are a very attractive investment segment. According to Statistics Denmark and the Association of Danish Mortgage Banks (ADMB), prices are steadily rising across virtually all sectors.
Recently, the situation with new home construction in Denmark has improved significantly, driven not only by the stable economic situation but also by growing demand for residential complexes in Denmark among the population and foreign investors (the largest number of new builds have appeared in Copenhagen, where several new neighborhoods have sprung up near the city center).
It's worth noting that buying an apartment in a new build in Denmark is beneficial for generating stable rental income. This is due to the fact that rental yields remain quite high, with rental rates rising even faster than property prices in the country. Statistics also confirm the liquidity of investments in new buildings in Denmark: residential property prices increase by an average of 1.5% each quarter.
Prices for new apartments in Denmark
Living conditions vary slightly across cities and regions of Denmark. However, new buildings in the capital or closer to the coast are much more expensive. The most popular regions and cities for buying property are Copenhagen, Odense, Aarhus, and Aalborg.
The average price per square meter in the country is around €4,000.
A new building in an elite area will cost a pretty penny; for example, in Aalborg, it costs around €600,000.
New Construction Property in Denmark (Types)
Potential investors can choose from the following types of new construction property:
- Residential (apartments, villas, houses, mansions, holiday homes);
- Commercial (offices, retail space, hotels, restaurants, cafes, etc.).
How to Buy an Apartment from a Developer in Denmark: Investing Nuances
There are clear restrictions on foreigners' rights to purchase real estate, including a ban on purchasing property in resort areas, the inability to purchase property without a lawyer (whose fees must be paid by the buyer), and loans from Danish banks (purchasing real estate from a developer in Denmark is only possible with cash). The relevant legislation applies in all cities in Denmark.
To complete the transaction, a foreign buyer must obtain a special permit from the Danish Ministry of Justice. They must also submit a report on their income for the past three months. Documents are translated into Danish and apostilled (the apostille procedure in Denmark replaces document legalization and does not require legalization of foreign official documents).
The following conditions apply to the purchase and sale of real estate in Denmark for foreigners:
- The buyer has previously resided in Denmark, with a minimum qualifying period of 5 years;
- The investor is a citizen of the European Union and works in Denmark;
- The foreigner is not a citizen of the EU but has a residence permit or business permit.
We recommend seeking qualified assistance from specialists to minimize risks and losses. GEOLN experts provide high-quality apartment selection based on the client's individual requirements. The purchase and sale of new buildings in Denmark is supported by professionals who prepare the necessary documents and handle comprehensive transaction processing.
Developer-supplied apartments in Denmark offer a profitable investment, a reliable way to preserve and grow your wealth, and the opportunity to live in one of the world's most economically developed countries, with an effective social security system, a high level of education, and strong democratic traditions.