Returns have become attractive again in danish transaction market

Residential real estate is once again attracting significant interest from institutional investors in Denmark. According to Morten Jensen, CEO of Newsec Advisory Denmark, improved yields and favourable market conditions driving pension funds back into the residential segment.

“There’s no doubt that pension funds are actively acquiring residential assets at the moment. Yields have become attractive again, particularly in Copenhagen, where supply is outpacdemand. We expect this imbalance to trigger increasing rent levels, reinforcing the general notion that residential property is a safe and attractive asset class,”, says Jensen.

As of 25 June 2025, Newsec Advisory has recorded a total of DKK 25 billion in real estate transactions exceeding DKK 35 million in value. Residential assets account for DKK 14 billion, corresponding to 57% of total volume. Roughly 60% of buyers in this segment are international, while the remaining 40% are domestic investors, primarily Danish pension funds.

Several large institutions, including Lærernes Pension, AP Ejendomme, Sampension, and Pensam, have completed residential transactions exceeding DKK 0.5 billion this year. Among the most notable transactions are Lindgrens Hus, Fremtiden, Marthahus, and Smedekær – transactions that reflect a renewed focus on long-term stability and income-generating potential.

While the residential segment is the privary focus of investor interest, hotel assets are becoming a strong secondary segment. Sampension alone has dedicated more than DKK 1 billion to hotel investments in 2025. In contrast, pension funds have shown limited appetite for office property, due to continued uncertainty regarding structural changes in workplace demand.

According to Newsec Advisory’s figures, the 2025 transaction volume is distributed as follows: residential (57%), hotel (21%), office (9%), industrial (8%), retail (4%), and other segments (1%).

With institutional capital returning to the market and investment strategies focused on safe and resilient asset types, 2025 is on track to be a strong year for Danish real estate. The combination of foreign and domestic interest, particularly from pension funds, suggests a broader market recovery and a return to the fundamentals that long defined Denmark as a safe and attractive investment destination.

If you are interested in investing in the Danish property market, please contact

Capital Markets Denmark

Mikkel Andersen
Head of Capital Markets

mikkel.andersen@newsec.dk
+45 27 83 84 39

Sources: Newsec