The housing market in the capital is red-hot. New figures from Boligsiden show that the price of owner-occupied apartments in Copenhagen Municipality took another leap in January, landing at an average price per square meter of DKK 70,652.
This marks a historic milestone, doubling prices since the end of 2016. The development has been unusually rapid. Less than a year ago, prices crossed DKK 60,000, and just in the past year, prices in Copenhagen have surged by a staggering 24.3 percent.
At AL Sydbank, formerly Arbejdernes Landsbank, the development has caught attention.
»We see records in the housing market all the time, but the pace of this rise is off the charts,« says chief economist Jeppe Juul Borre.
Million-dollar gains in a few years
A review of the market highlights the dramatic value increases over just a few years.
In Nørrebro, a three-room apartment on Hamletsgade, measuring 64 square meters, is currently listed for sale at DKK 5.5 million. In March 2023, the same apartment was sold for DKK 3.5 million – an increase of two million kroner in less than three years.
The same trend is showing up in Vesterbro. A one-bedroom apartment on Enghavevej is now listed at DKK 4.3 million, after selling as recently as May 2025 for DKK 3.2 million.
Vanløse shows the same pattern: a two-bedroom on Skjulhøj Allé has just hit the market at DKK 3.8 million, after selling for DKK 2.15 million in February 2023.
In these specific apartments, renovations or other improvements may contribute to the price increases, but the value growth follows the general market trends.
The explosive price increases raise the question of who can still participate in the market. According to Mikkel Høegh, housing economist at Jyske Bank, the answer is clear: It is not the average Dane.
»We are seeing gentrification in Copenhagen. Those who buy owner-occupied apartments in Copenhagen are much wealthier, in terms of income, than those who sell them,« explains Mikkel Høegh.
»Those who buy homes in Copenhagen are not average. Either their income is well above average, or they have parents with an income above average.«
Fear of overheating
The reasons for the price boom, according to Jeppe Juul Borre, are »manifold.« He points to a solid foundation with record-high employment, rising wages, and falling interest rates, which have increased purchasing power for many Danes. At the same time, the supply of homes is historically low, which pushes prices up when demand is high.
Jeppe Juul Borre therefore does not fear a housing bubble in Copenhagen, because the development can be explained to some extent by conventional economic theory – such as high demand and a small supply of apartments. But the speed concerns him. For example, the price of owner-occupied apartments in the capital rose almost two percent just from December to January.
»If this pace continues, concerns about stability in the housing market will also rise,« says Jeppe Juul Borre.
Although both economists see signs that prices may rise further, they strongly warn against buying solely with the expectation that prices will continue to rise.
»Those who buy homes now must understand that it is not a natural law that the price will increase. You should not buy a new home for speculative reasons, but because you intend to live there for several years,« says Mikkel Høegh.
Jeppe Juul Borre reminds us that we only need to go back to 2022 to find large and sudden drops in owner-occupied apartment prices in Copenhagen when inflation and interest rates suddenly rose.
Nevertheless, his advice is clear.
»If you need a home, now is the time to start your house hunt. At this point, I would expect prices to be even higher if you wait a year, but there are no guarantees.«
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