Real Estate
The underlying growth and attractive development areas, combined with the stable Danish economy, high yield and a unique mortgage system with competitive transaction costs make Aarhus attractive for property investors.
Aarhus and Copenhagen are the two high-growth areas in Denmark in terms of new inhabitants, jobs and companies. Aarhus has many attractive development areas where flats and office space can be relatively easily rented out or sold thanks to the underlying growth. This situation, combined with the general Danish market conditions, makes Aarhus attractive for international property investors.
Attractive market conditions The Danish mortgage system has the lowest borrowing cost for the first 60% of property value of all European countries.
The transaction costs on property investments in Denmark are lower than in many other European countries. A combination of cheap loan costs, a relatively high risk premium compared to the rest of Europe as well as the economic stability makes the Danish real estate market very attractive to invest in.
The risk-adjusted yields on property investment in Aarhus are attractive compared to investments in comparable cities in the rest of Europe.
The stable Danish economy
The Danish economy is stable. The national debt is low, and throughout the financial crisis and after, the Danish economy performed well. The economy of Denmark has been significantly less volatile than in most of Europe. This combination has resulted in a Standard & Poor’s rating of AAA for the Danish economy. The Danish Krone (DKK) is linked to the Euro, which eliminates currency risks.