Copenhagen is a relatively cheap capital
The Local · 18 Sep 2014, 11:40
Published: 18 Sep 2014 11:40 GMT+02:00
- What to know about renting in Copenhagen (17 Nov 15)
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- Home prices up in CPH but down elsewhere (08 Jul 14)
Danes may complain that buying an apartment in Copenhagen is getting too expensive, but the price may be right if we compare the city to other capitals in Scandinavia and western Europe.
Politiken reports that Copenhagen is actually a cheap place to live, based on studies by the bank Nykredit and the National Bank (Nationalbanken).
Cheapest in Scandinavia
An average 80 square metre apartment in the city will cost 2.5 million kroner ($432,472). That may sound like a lot of money, but a similar flat will cost you 3.7 million kroner ($640,059) in Oslo and 4.4 million kroner ($761,151) in Stockholm.
"We often discuss rising housing prices in Copenhagen, but Copenhagen is actually a relatively cheap capital,” Morten Skak, associate professor at the University of Southern Denmark told Politiken.
The Nykredit study found that even when factors such as different tax rates, income and mortgage rates were taken into account, Copenhagen still was a significantly cheaper place to live than its Scandinavian neighbour capitals.
Owning an apartment in Copenhagen will cost you 223,000 kroner in the first year, but even though Sweden has lower taxes and fees, a similar apartment in Stockholm will still cost 296,000 kroner in the first year, making it 33 percent more expensive than in Copenhagen. It’s even higher in Oslo, where the same apartment will cost 337,000 kroner in the first year, which is 51 percent more than in Copenhagen.
Prices among lowest in western Europe
The Danish capital is in the low end, even if we move beyond Scandinavia. An overview of housing prices in eight European capitals released by the National Bank (Nationalbanken) revealed that only Vienna and Berlin was cheaper than Copenhagen.
If you compare housing prices to average income in each city, apartment prices end up being twice as costly in Paris and in Amsterdam than in Copenhagen. Helsinki and Oslo are closer to the Danish capital but housing is still more expensive here.
It remains uncertain how long Copenhagen will stay like this. Housing prices may soon be more like in Sweden and Norway, as the population growth keeps rising and new jobs are being created.