Investment Property in Copenhagen

Invest in Real Estate in Copenhagen

Investment Property in Copenhagen
Investment Property in Copenhagen

Copenhagen 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 Copenhagen .

Search Map of Copenhagen Investment Real Estate

Copenhagen ( KOH-pən-HAY-gən, -⁠HAH or KOH-pən-hay-gən, -⁠hah-.; Danish: København [kʰøpm̩ˈhɑwˀn] (listen)) is the capital and most populous city of Denmark, with a proper population of around 815.000, almost 1.4 million in the urban area, and more than 2 million in the wider Copenhagen metropolitan area. The city is on the islands of Zealand and Amager, separated from Malmö, Sweden, by the Øresund strait. The Øresund Bridge connects the two cities by rail and road.

Originally a Viking fishing village established in the 10th century in the vicinity of what is now Gammel Strand, Copenhagen became the capital of Denmark in the early 15th century. Beginning in the 17th century, it consolidated its position as a regional centre of power with its institutions, defences, and armed forces. During the Renaissance the city served as the de facto capital of the Kalmar Union, being the seat of monarchy, governing the majority of the present day Nordic region in a personal union with Sweden and Norway ruled by the Danish monarch serving as the head of state. The city flourished as the cultural and economic centre of Scandinavia under the union for well over 120 years, starting in the 15th century up until the beginning of the 16th century when the union was dissolved with Sweden leaving the union through a rebellion. After a plague outbreak and fire in the 18th century, the city underwent a period of redevelopment. This included construction of the prestigious district of Frederiksstaden and founding of such cultural institutions as the Royal Theatre and the Royal Academy of Fine Arts. After further disasters in the early 19th century when Horatio Nelson attacked the Dano-Norwegian fleet and bombarded the city, rebuilding during the Danish Golden Age brought a Neoclassical look to Copenhagen’s architecture. Later, following the Second World War, the Finger Plan fostered the development of housing and businesses along the five urban railway routes stretching out from the city centre.

Since the turn of the 21st century, Copenhagen has seen strong urban and cultural development, facilitated by investment in its institutions and infrastructure. The city is the cultural, economic and governmental centre of Denmark; it is one of the major financial centres of Northern Europe with the Copenhagen Stock Exchange. Copenhagen’s economy has seen rapid developments in the service sector, especially through initiatives in information technology, pharmaceuticals and clean technology. Since the completion of the Øresund Bridge, Copenhagen has become increasingly integrated with the Swedish province of Scania and its largest city, Malmö, forming the Øresund Region. With a number of bridges connecting the various districts, the cityscape is characterised by parks, promenades, and waterfronts. Copenhagen’s landmarks such as Tivoli Gardens, The Little Mermaid statue, the Amalienborg and Christiansborg palaces, Rosenborg Castle, Frederik’s Church, Børsen and many museums, restaurants and nightclubs are significant tourist attractions.

Copenhagen is home to the University of Copenhagen, the Technical University of Denmark, Copenhagen Business School and the IT University of Copenhagen. The University of Copenhagen, founded in 1479, is the oldest university in Denmark. Copenhagen is home to the football clubs F.C. Copenhagen and Brøndby IF. The annual Copenhagen Marathon was established in 1980. Copenhagen is one of the most bicycle-friendly cities in the world.

Movia is the public mass transit company serving all of eastern Denmark, except Bornholm. The Copenhagen Metro, launched in 2002, serves central Copenhagen. Additionally, the Copenhagen S-train, the Lokaltog (private railway), and the Coast Line network serve and connect central Copenhagen to outlying boroughs. Serving roughly 2.5 million passengers a month, Copenhagen Airport, Kastrup, is the busiest airport in the Nordic countries.

The financial stability of Copenhagen 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 Copenhagen

 

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

 

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

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Copenhagen and be prepared to change your initial outlook.
  • Thoroughly research the Copenhagen location with a special emphasis on fringe areas outside the main Copenhagen metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Copenhagen.
  • Ensure that your target investment property in Copenhagen 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 Copenhagen provides the secure knowledge that your money is working harder than it would in a local Copenhagen 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 Copenhagen, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Copenhagen property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Copenhagen

Flipping property in Copenhagen

 

Flipping property is when we advise clients to buy a Copenhagen 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 Copenhagen market has a time to react to the renovation.

 

The Flipping Strategy in Copenhagen

 

Investment property flipping in Copenhagen 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 Copenhagen real estate investments are sometimes referred to by professionals as ‘distressed’ Copenhagen real estate.

 

What is distressed Copenhagen property:

 

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

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

 

Calculate profit that you make from Copenhagen investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Copenhagen 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 Copenhagen use a minimum profit value of 22% when looking at potential Copenhagen projects.

 

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

 

Invest through a Fund in Copenhagen

 

Property Secured Investments is a Private Equity fund that invests in Copenhagen 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 Copenhagen

For luxury property investors hoping to add a superb property in Copenhagen 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 Copenhagen, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Copenhagen should be entrusted to only the highest-quality agency.

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