House Prices in Denmark: What Should You Expect in 2024

Did you know that house prices in Denmark are expected to fall by almost 10% in 2023 and another 3.6% in 2024? The average purchasing price for single-family houses in Denmark was about 2.6 million Danish kroner (DKK), which is equivalent to about 350,000 euros (EUR) or 410,000 US dollars (USD).

If you are thinking of buying a property in this beautiful Nordic country, you might want to know more about the current Danish house prices.

In this post, you will learn about the Denmark house prices, the financing options available, and the buying process for foreigners and expats.

As an expat who has bought a property abroad, I know how challenging and rewarding it can be. I moved to Denmark three years ago and fell in love with its culture, nature, and people. I decided to buy a cozy apartment in Copenhagen and don’t regret it. However, I also learned a lot about the Danish real estate market and the pitfalls to avoid. I want to share my experience and knowledge with you so you can make an informed decision and enjoy your new home in Denmark.

Read this before moving to Demark: Cheapest Places To Live in Denmark

How Much is a House in Denmark?

So, how much does a house cost in Denmark?

The average purchasing price for single-family houses in Denmark was 2,656,115 DKK (about 357,000 EUR), according to Finans Danmark, the trade association for banks, mortgage institutions, asset management, securities trading and investment funds in Denmark.

However, this average price masks the large variation across regions, as shown in the table below. The most expensive region was the Capital Region, which includes Copenhagen and its surroundings, with an average price of 4,050,000 DKK (about 544,000 EUR) per house. The cheapest region was North Jutland, with an average price of 1,450,000 DKK (about 195,000 EUR) per house.

The market took a downturn in the second quarter of 2023, with house prices falling by almost nine percent.

Looking ahead to 2024, especially the second quarter, the market is expected to remain competitive, but the cost of houses is predicted to decrease further. Moreover, data suggest that house prices are expected to decrease by about 3.6 percent in 2024.

How much is a house in Denmark? Below is the comparison of Danish house prices in different regions:

1. Capital Region (Hovedstaden)

• Average Price (DKK): 4,050,000 (You can also find DKK 35,000 and DKK 45,000 per square meter)

• Average Price (EUR): 544,000

• Insights:

  • The Capital Region, encompassing Copenhagen and its suburbs, is the most expensive area for housing.

  • Factors contributing to high prices:

    • Economic Hub: Copenhagen is Denmark’s economic and cultural center, attracting professionals and businesses.

    • Infrastructure: Excellent public transport, job opportunities, and amenities drive demand.

    • Scarcity: Limited land availability in the city leads to higher prices.

2. Zealand (Sjælland)

• Average Price (DKK): 2,300,000 (Some real estate agents offer properties for DKK 20,000 to DKK 30,000 per square meter.)

• Average Price (EUR): 309,000

• Insights:

  • Zealand, the island where Copenhagen is located, offers a mix of urban and rural living.

  • Factors influencing prices:

    • Proximity to Copenhagen: Commutable distance to the capital makes it desirable.

    • Scenic Areas: Zealand boasts picturesque landscapes and coastal towns.

3. Southern Denmark (Syddanmark)

• Average Price (DKK): 1,900,000 (You can find DKK 13,000 to DKK 18,000 per square meter.)

• Average Price (EUR): 255,000

• Insights:

  • Southern Denmark includes cities like Odense and charming coastal towns.

  • Factors at play:

    • Affordability: Relatively lower prices attract families and retirees.

    • Quality of Life: Coastal living, green spaces, and cultural heritage contribute.

4. Central Denmark (Midtjylland)

• Average Price (DKK): 1,850,000

• Average Price (EUR): 249,000

• Insights:

  • Central Denmark spans Aarhus, the second-largest city.

  • Factors affecting prices:

    • Educational Institutions: Aarhus University and research centers attract students and academics.

    • Growing Economy: Job opportunities and quality of life contribute.

5. North Jutland (Nordjylland)

• Average Price (DKK): 1,450,000

• Average Price (EUR): 195,000 (The housing market in this area is more favorable. Data suggests that you can find competitive prices here for residential properties, including apartments.)

• Insights:

  • North Jutland offers serene coastal living and rural landscapes.

  • Factors:

    • Scenic Beauty: Tranquil surroundings and proximity to nature.

    • Affordability: Lower prices make it appealing.

6. Denmark (Overall Housing Market Cost)

• Average Price (DKK): 2,656,115

• Average Price (EUR): 357,000

• Insights:

  • National Trends in Denmark today:

    • Demand-Supply Dynamics: High demand, limited supply, and accessible loans drive prices.

    • Low Interest Rates: Favorable mortgage rates make housing more affordable.

    • Stable Economy: Denmark’s robust economy supports property investments. You can also see property prices with low down payment requirements even in the city center where you have unlimited access to its perks.

I once met a couple who moved from bustling Copenhagen to a cozy cottage in North Jutland. They traded city life for sea views and tranquility. Their decision was influenced by affordability, quality of life, and the allure of Danish coastal living.

Remember, each region has its unique charm, and house prices reflect a blend of economics, lifestyle, and local flavor. Whether you seek urban vibrancy or serene landscapes, Denmark offers something for everyone.

Planning to Work in Denmark? Check this article: What Is A Good Salary in Copenhagen, Denmark? [2023]

Financing Options for Foreigners and Expats Buying Houses in Denmark

Denmark is a beautiful country with a high quality of life, a stable economy, and a rich culture. Many foreigners and expats are attracted to the idea of buying a house in Denmark, whether for holiday purposes, permanent residence, or investment. However, buying a house in Denmark is not a simple process, especially for non-EU/EEA citizens. There are legal restrictions, financial requirements, and housing market conditions that need to be considered before making a decision.

But before you get a loan from Danish mortgage banks, let’s first compare different financing options available for foreigners and expats who want to buy a house in Denmark, including their pros and cons.

Financing options for EU/EEA citizens

Worried about the Denmark increased prices for real estate? Don’t worry! There are financing options available.

If you are a citizen of the European Union (EU) or the European Economic Area (EEA), you have more options and flexibility when it comes to financing a house or owner occupied flats in Denmark. You can either apply for a mortgage loan from a Danish credit institution, such as Realkredit Danmark, Totalkredit, or Nordea Kredit, or use your own savings or funds from your home country.

Here are some of the pros and cons of each option:

Mortgage loan from a Danish credit institution

• Pros:

  • You can finance up to 80% of the property value with a mortgage loan, which means you only need to pay 20% as a down payment.

  • You can choose from different types of mortgage loans, such as fixed-rate, variable-rate, or interest-only, depending on your preference and risk tolerance.

  • You can benefit from the low interest rates and long repayment periods (up to 30 years) offered by Danish credit institutions.

  • You can deduct the interest payments from your taxable income in Denmark, which can lower your tax burden.

• Cons:

  • You need to meet the eligibility criteria and provide the necessary documentation, such as proof of income, credit history, and residence permit, to qualify for a mortgage loan.

  • You need to pay various fees and charges, such as valuation fees, registration fees, stamp duty, and administration fees, which can add up to 5-10% of the property value.

  • You need to open a bank account in Denmark and transfer your funds to the account before closing the deal, which can incur currency exchange and transfer fees.

  • You are exposed to the risk of currency fluctuations, as the mortgage loan is denominated in DKK, while your income may be in another currency.

Also read: Best Used Car Websites in Denmark

Savings or funds from your home country

• Pros:

  • You can avoid the hassle and cost of applying for a mortgage loan and dealing with a Danish credit institution.

  • You can have more bargaining power and flexibility when negotiating the price and terms of the sale with the seller.

  • You can reduce the risk of currency fluctuations, as you can pay for the property in your own currency or in EUR, which is pegged to the DKK.

• Cons:

  • You need to have sufficient savings or funds to cover the entire property value, as well as the fees and charges associated with the purchase.

  • You need to transfer your funds to Denmark and convert them to DKK before closing the deal, which can incur currency exchange and transfer fees.

  • You cannot deduct the interest payments from your taxable income in Denmark, as you are not paying any interest on a loan.

  • You may miss out on the potential capital appreciation of the property, as you are investing a large amount of money upfront.

Also read: What Is A Good Salary in Denmark? [2023]

Financing options for non-EU/EEA citizens

If you are a citizen of a country outside the EU/EEA, you have fewer options and more restrictions when it comes to financing residential properties, including detached houses in Denmark. You need to obtain a permission from the Danish Ministry of Justice to buy a property in Denmark, unless you have a permanent residence permit or have lived in Denmark for at least five years. You also need to prove that the property will be your primary residence and that you will use it for at least half of the year. Furthermore, you cannot apply for a mortgage loan from a Danish credit institution, unless you have a permanent residence permit or have lived in Denmark for at least five years. Therefore, your main option is to use your own savings or funds from your home country. Here are some of the pros and cons of this option:

Savings or funds from your home country

• Pros:

  • Same as for EU/EEA citizens.

• Cons:

  • Same as for EU/EEA citizens, plus:

  • You need to obtain a permission from the Danish Ministry of Justice, which can take several months and require a lot of paperwork and evidence.

  • You need to comply with the conditions and limitations imposed by the Danish Ministry of Justice, such as using the property as your primary residence and not renting it out.

  • You may face difficulties in selling the property in the future, as you need to obtain another permission from the Danish Ministry of Justice and find a buyer who meets the same criteria as you.

If you’re not eligible for the available financing options, you can always rent affordable residential properties in Denmark.

Related article: Where to Stay in Copenhagen

Buying process for foreigners in Denmark

Once you have determined your eligibility and budget for buying a house in Denmark, you can start the actual buying process. The buying process for foreigners in Denmark is similar to the buying process for Danish citizens, with some minor differences. Here are the main steps of the buying process for foreigners in Denmark:

Step 1: Find your dream house in the Danish Real Estate Market

The first step of the buying process is to find your dream house in Denmark. You can search for properties online, through websites such as Boliga.dk, Boligsiden.dk, or Home.dk, or offline, through newspapers, magazines, or word-of-mouth. You can also hire a buyer’s agent to help you find relevant properties that match your criteria and preferences. A buyer’s agent can also assist you with the rest of the buying process, such as negotiating the price, reviewing the contracts, and arranging the financing.

Related article: Can You Rent A Car in Europe with US Drivers License?

Step 2: Get a mortgage pre-approval

The second step of the buying process is to get a mortgage pre-approval from a Danish bank or credit institution. A mortgage pre-approval is a document that shows how much money you can borrow and at what interest rate and terms. A mortgage pre-approval is not a binding offer, but it gives you an advantage when making an offer on a property, as it shows the seller that you are a serious and qualified buyer. To get a mortgage pre-approval, you need to provide the bank or credit institution with your personal and financial information, such as your income, assets, liabilities, and credit history. You also need to have a valid residence permit or visa and a Danish personal identification number (CPR number), which you can obtain from the International Citizen Service.

Step 3: Make an offer and negotiate the price

Make an offer and negotiate the price with the seller. You can make an offer verbally or in writing, but it is advisable to make it in writing as it provides more clarity and security. You can also include some conditions in your offer, such as subject to financing, inspection, or permission. The seller can accept, reject, or counter your offer, and you can either agree, decline, or make a new offer. The negotiation process can take from a few hours to a few days, depending on the market situation and the parties involved. Once you and the seller reach an agreement, you will sign a purchase agreement, which is a legally binding contract that outlines the terms and conditions of the sale.

Also read: The Cost of Owning a Car in Denmark: Guide 

Step 4: Review the property reports and documents

The fourth step of the buying process is to review the property reports and documents that the seller provides. These include:

• A house condition report (tilstandsrapport), which is a technical assessment of the physical condition of the property, such as the roof, walls, floors, windows, doors, plumbing, heating, and electricity.

• An electrical installation report (el-installationsrapport), which is a technical assessment of the electrical installations and safety of the property, such as the wiring, sockets, switches, fuses, and appliances.

• An energy performance certificate (energimærke), which is a document that shows the energy efficiency and consumption of the property, as well as the potential for improvement.

• A seller’s disclosure statement (ejerskifteforsikring), which is a document that discloses any known defects or problems with the property that are not covered by the house condition report or the electrical installation report.

When you’re buying residential properties or detached houses, you should carefully examine these reports and documents, and if possible, hire your own inspector or surveyor to verify the information and check for any hidden issues. You should also consult with your lawyer or buyer’s agent to ensure that the purchase agreement and the deed are in order and comply with the legal requirements. Doing so will help you keep a healthy budget even without relying on rising wages.

Step 5: Arrange the financing and insurance

The fifth step of the real estate buying process is to arrange the financing and insurance for the property. You can finance the property with a combination of your own funds and a mortgage loan from a Danish bank or credit institution.

Home buyers can also apply for a bank loan to cover the remaining costs, such as taxes, fees, and charges. You should compare different offers and choose the one that suits your needs and budget.

Moreover, you should also arrange an owner’s change insurance (ejerskifteforsikring), which is a type of insurance that covers you for any unforeseen defects or damages that may arise after the purchase. You can either buy the insurance from the seller or from your own insurance company. The insurance is optional, but highly recommended, as it can save you a lot of money and hassle in the future.

Step 6: Sign the deed and complete the transfer

Next, sign the deed and complete the transfer of the property. The deed is a legal document that transfers the ownership and the rights of the property from the seller to you. The deed is prepared by your lawyer or buyer’s agent, and it contains the details of the property, the parties, the price, and the date of the transfer. Next, you and the seller will sign the deed in front of a witness, usually a notary public, who will verify your identities and signatures.

You will then pay the agreed price to the seller, either by bank transfer or by a certified check. You will also pay the taxes, fees, and charges associated with the purchase.

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Final Thoughts About House Prices in Denmark

In conclusion, the Danish housing market is experiencing fluctuations, with a projected decrease in house prices by about 3.6% in 2024, following a drop of almost 10% in 2023. Regional and segmental differences influence prices, with Copenhagen remaining the most expensive market while Zealand and Southern Denmark show stability. Financing options vary for EU/EEA citizens compared to non-EU/EEA citizens, with different pros and cons for each. If considering a purchase in Denmark, thoroughly review the process and consult experts.

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