House prices in Denmark rose 15.3 percent between the first quarter of 2020 and the first quarter of 2021, according to a Statistics Denmark analysis of the international house price index.
That’s more than double the average increase seen in other EU countries over the same time period. Sweden’s home prices rose 7.2 percent, while Norway experienced a 9.7 percent increase, a press release from Statistics Denmark explained.
Prices in Denmark have risen faster than the EU average every year since 2013, but this year has been particularly dramatic. Only Luxembourg’s real estate market saw a higher increase than Denmark, with an average house costing 16 percent more in 2021 than in 2020.
Danske Bank points to low interest rates on mortgages and a desire for more space at home during lockdowns as forces fueling the price increases.
In January 2021, Danish bank Nordea offered 20-year mortgages at 0 percent interest, to great international fanfare, Bloomberg reported. Several other Danish banks followed suit, and more recently interest rates have oscillated between 1 and 1.5 percent.
The demand for housing has kept pace with the price increases, with June seeing the highest number of home loans secured of any month since October 2017.