Rent rates are moderate to good although the market is very regulated
In recent years yields have recovered in Denmark, with rents rising faster than house prices. According to the Global Property Guide, average gross rent yields in Copenhagen usually range from 4.84 to 5.31 percent. Smaller apartments offer higher rates, unsurprisingly. Apartments with 120 m2 yield a 4.84% yield, while those with 50 m2 yield a 5.27% yield. property for sale in qatar
However, few new private houses are now being built, mainly because the private rental market is a strong loan (see Landlord and Tenant section).
Denmark's Delays
Only properties built after 1991 are exempt from rental control (less than 1 percent of dwelling stock, or about 10,000 to 15,000 units). Otherwise, rents do not respond to market forces because, depending on age, there are five different forms of rent control. There is also an enormous social rental sector.
Further deterrent landlordism, the owner-occupied housing receives generous government benefits. In addition to the mortgage tax relief, homeowners are entitled to a standard home maintenance deduction. About 21% of households in Denmark receive government housing subsidies, the highest rate in the EU. Although the number of owners in favor of social housing has declined slightly, this is due to the rise of single households.
Economic slowdown, rising unemployment
The Danish economy grew modestly by 2.4% last year, equivalent to the average annual growth of 2.3% from 2014 to 2018. In June 2019, Social Democrats won power back in the general elections led by Denmark's youngest 41-year-old Prime Minister, Mette Frederiksen. Frederiksen campaigned on a combination of traditional center-left calls for stronger social protection policies and stricter immigration rules.
In Q1 2020, however, the economy contracted by 0.2% from the previous year, which was in stark opposition to annual expansions of 2.1% in Q4 2019, 2.6% both in Q2 and Q3 and 2% in Q1 in the midst of a coronavirus disease outbreak. According to Statistics Denmark, on a quarterly basis the economy shrank by 2 percent in Q1 2020, the first quarterly contraction since Q4 2017.
Gdp inflation in Denmark
"The Danish economy's boom ended abruptly by early 2020," the Danish central bank said. "The coronavirus outbreak and the measures taken to curb its spread led to a sharp contraction in economic activity."
The central bank plans to contract between 3 and 10 percent in 2020 for the Danish economy. This is in line with the European Commission's forecast that, before rebounding in 2021, the Danish economy will fall by 5.2 per cent.
DKK +33.1 billion (EUR4.45 billion) in 2017, DKK +10.7 billion in 2018 (EUR1.44 billion) and DKK 84.9 billion (EUR11.41 billion) in 2019 have improved Denmark's public finance significantly in recent years. The Government is however expecting a significant loss of about EUR 165 billion to DKK 197 billion (EUR 22,17 billion) in the public sector balance this year, according to Danmarks Nationalbank's estimate of around DKK 250 billion (EUR 33,59 billion) in order to deal with the coronavirus crisis.
Dutch unemployment
In the most optimistic scenario this year, Denmark is expected to record a deficit of approximately 6.5 percent of GDP, compared with 3.7 percent in 2019, 0.5 percent in 2018 and 1.5 percent in 2017.
According to Statistics Denmark, government debt in 2019 fell by approximately 33.2% of GDP, from 33.9% in 2018 and was the lowest level since 2007. However, as a result of increasing COVID-19 funding needs, government debt should this year rise to more than 40% of GDP.
Inflation in June 2020 amounted to 0.3 percent, compared to 0.6 percent in the same period last year, based on statistics from Denmark. According to the European Commission, inflation is expected to slow to 0.3% this year, before accelerating to 1.2% in 2021.
The unemployment rate in Denmark was 5.2% in May 2020, up from 5% in the previous month and only 3.4% in the previous year, according to Statistics Denmark.
In May 2020, the unemployment rate in Denmark for men and women was 5.1% and 5.3%. Overall unemployment was 3.9% between 2016 and 2019.