Kristensen Partners VI – Investing in the Danish residential market.
In recent years, investments in Danish residential portfolios have performed steadily and generated attractive and inflation-proof returns.
Despite uncertainty in the world economy, the Danish economy is stable and progressing. The demographic development is positive. Urbanization is increasing. All indicators point to a further positive trend in Danish economy with annual growth expected at 1.8% in the coming years.
More people move to rental accommodation in central city districts. Approximately 42% of the Danish population live in rented apartments. The percentage has increased with 7.7% in four years only.
The combination of increased demand for rental accommodation and the historically low interest rates offer an attractive yield combined with a relatively low degree of risk when investing in Danish residential portfolios.
Current low interest rates form a favourable spread between net initial yield and the financing costs.