Investment Property in Aarhus

Invest in Real Estate in Aarhus

Investment Property in Aarhus
Investment Property in Aarhus

Aarhus property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Aarhus .

Search Map of Aarhus Investment Real Estate

Aarhus (, US also /ˈɑːr-/, Danish: [ˈɒːˌhuˀs] (listen); officially spelled Århus from 1948 until 1 January 2011)[note 1] is the second-largest city in Denmark and the seat of Aarhus Municipality. It is located on the eastern shore of Jutland in the Kattegat sea and approximately 187 kilometres (116 mi) northwest of Copenhagen.

The largest city in Jutland, Aarhus anchors the Central Denmark Region and the statistical region Landsdel Østjylland () (lit.: Province East Jutland). The LØ is the second most populous statistical region in Denmark with an estimated population of 903,974 (as of 1 January 2021). Aarhus Municipality defines the greater Aarhus area as itself and eight adjacent municipalities totalling 952,824 inhabitants (as of 1 January 2021) which is roughly analogous to the municipal and commercial collaboration Business Region Aarhus. The city proper, with an estimated population of 285,273 inhabitants (as of 2022), ranks as the 2nd-largest city in Denmark.

Aarhus dates back to at least the late 8th century and is among the oldest cities in Denmark. It was founded as a harbour settlement at the mouth of the Aarhus River and quickly became a trade hub. The first Christian church was built here around the year 900 and later in the Viking Age the town was fortified with defensive ramparts. The Viking Age was turbulent and violent, also for Aros, as the town was called back then, but in spite of the difficulties, the bishopric of Aarhus grew steadily stronger and more prosperous, building several religious institutions in the town during the early Middle Ages. Trade continued to improve, although it was not until 1441 that Aarhus was granted market town privileges, and the population of Aarhus remained relatively stable until the 19th century. The 1600s, in particular, was a difficult time for Aarhus as the town suffered from several wars and the plague, and trade was also dampened by the state in favour of the royal seat of Copenhagen. Nevertheless, Aarhus grew to become the second-biggest town in Denmark during that time, and in the middle of the 1700s, the once prosperous trade growth returned. The Industrial Revolution became an inflection point in the 19th century, as industry drove a rapid population growth, outpacing regional rivals, and the first railway line in Jutland was built here in 1862. In 1928, the first university in Jutland was founded in Aarhus and today it is a university city and the largest centre for trade, services, industry, and tourism in Jutland.

Designated as a “Sufficiency” global city by the Globalization and World Cities Research Network, the city’s major cultural institutions include Den Gamle By, ARoS Aarhus Kunstmuseum, Moesgaard Museum, Gender Museum Denmark, Musikhuset Aarhus and Aarhus Theatre. Known as Smilets By (lit. City of Smiles) it is the Danish city with the youngest and fastest growing demographics and home to Scandinavia’s largest university, Aarhus University. Commercially, the city is the principal container port in the country and major Danish companies are headquartered here such as Vestas, Arla Foods, Salling Group, and Jysk.

The financial stability of Aarhus has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Aarhus

 

Renting out your Aarhus buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Aarhus are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Aarhus and be prepared to change your initial outlook.
  • Thoroughly research the Aarhus location with a special emphasis on fringe areas outside the main Aarhus metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Aarhus.
  • Ensure that your target investment property in Aarhus appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Aarhus provides the secure knowledge that your money is working harder than it would in a local Aarhus bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Aarhus, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Aarhus property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Aarhus

Flipping property in Aarhus

 

Flipping property is when we advise clients to buy a Aarhus property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Aarhus market has a time to react to the renovation.

 

The Flipping Strategy in Aarhus

 

Investment property flipping in Aarhus is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Aarhus real estate investments are sometimes referred to by professionals as ‘distressed’ Aarhus real estate.

 

What is distressed Aarhus property:

 

  • Aarhus property in need of renovation
  • Aarhus real estate with a change of purpose and use
  • Oversold Aarhus property
  • Bank repossessions in Aarhus

Put simply, long term investors in Aarhus purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Aarhus investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Aarhus property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Aarhus use a minimum profit value of 22% when looking at potential Aarhus projects.

 

The reason for this is because there are lots that can go wrong in Aarhus property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Aarhus

 

Property Secured Investments is a Private Equity fund that invests in Aarhus and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Aarhus

For luxury property investors hoping to add a superb property in Aarhus to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Aarhus, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Aarhus should be entrusted to only the highest-quality agency.

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