Why is it like this?
The housing market in Copenhagen is notoriously difficult, and our aim is to guide and help you through it. But how has it gotten to be this way?
The construction of new apartment buildings is exploding in Copenhagen, but it is simply not enough of what’s really needed. The population of Copenhagen has increased (net) by approximately 10.000 inhabitants per year since 2009, and therefore new accommodation options are necessary to avoid intense price increases. But what type of accommodation is really needed? The answer is smaller, low-cost apartments, but that is not what is being built! The newly-built apartments and houses in and around Copenhagen are targeted at traditional families (i.e.; double income homes with the need for more rooms/more m2). The problem is that the way in which Copenhagen is developing, there is a need for accommodation for singles with normal and lower income. It is strange that the newly-built complexes focus on families with children, since they are more likely to want to move out to the suburbs. But it constitutes a “fight” to keep these families (who pay a lot of taxes) to stay in Copenhagen, as opposed to building for those who really need it.
Another reason that newly built apartments are primarily larger in size than what makes sense from a social standpoint, is because of the latest official Municipality Plan which states that “new properties must average 95m2 (minimum), to meet the needs of families, couples and singles who wish to share accommodation”. But this 95m2 requirement is problematic. These apartments are too expensive for many of the people looking for rental accommodation in Copenhagen. Also, many landlords refuse to rent to singles who want to share, who should be one of the groups that is ‘helped’ by the Municipality Plan. People are looking for smaller, cheaper apartments, and the builders are lining up to build them, but they are not allowed to do so because of the Municipality Plan. Over the past 6 years ca. 75% of new apartments have been larger than 95m2 and the average was 113 m2! Additionally, many of the small apartments in the old city centre (Copenhagen K, V, Ø, N & Frederiksberg) have been bought up and connected, to convert 2 or 3 small apartments into single large apartments. All of these factors contribute to the fact that since 2010, the relative proportion of <50m2 apartments has decreased, while we have seen an increase of ca 18% in the 150-174m2 apartments.
Good relationships with landlords of small apartments and studios in Copenhagen are crucial as the demand for these places is enormous and the supply so extremely low. Landlords can get more than 500 applicants for a well priced apartment close to the city, so it is very important to have a good connection to them. Having someone who knows the landlords to represent you, the potential tenant, is important to be considered for a place like this. We do our absolute best to secure what few places there are for our clients.
So this is what we do while we wait for a new Municipality Plan, and for the authorities to open their eyes and see what Copenhagen really needs. Until then: we are here to help!