Denmark

Overall construction activity

For five consecutive years, i.e. from 2014 to 2019, Danish GDP growth reached annual rates of at least 2%. Public finances are healthy with a surplus of 3.7% of GDP in 2019 and a relatively low gross debt standing at 33% of GDP. In February 2020, Denmark registered the highest total employment ever in Danish economic history. Zooming into the construction industry, employment rose significantly by 23% from 2013 to 2019 with the industry now being confronted with the structural challenge of access to skilled labour from 2021 and onwards.

Housebuilding

Low interest rates led to a strong increase in house prices – initially in the major urban areas, but eventually in most parts of the country. During the period from 2014 to 18, prices for owner-occupied apartments rose more than prices for single-family houses. However, this trend has been reversed since 2019. The future scheme for housing taxation (originally planned for 2021 but postponed to 2024) was agreed upon by a broad majority in the Parliament in 2017 and will lead to stability in the market. Residential construction rose significantly from 2013 reaching its peak in 2018/2019. Total building starts of dwellings tripled during the period from 2013 to 2018/2019, from 11,500 to 32-33,000 but were expected to slightly decline to 29,000 in 2020. Rehabilitation and maintenance works are the least volatile segment and represent the most important share in construction employment.