Big rises in house prices in Aarhus
New figures from Finans Danmark for the first quarter of 2019 show that prices of terraced and detached houses in Aarhus have risen by 5,6% and owner-occupied flats in Aarhus by 2,1%, both since the first quarter of 2018.
Aarhus’ positive price development means the city is well above the average for the rest of the country, which stands at a 1% rise compared with the first quarter of 2018, for both terraced and detached houses and owner-occupied flats.
If you compare the price rises in Aarhus in 2018-2019 with those we saw in Aarhus in 2017-2018, the rises in 2018-2019 are almost 2 times as high as in 2017-2018, for both terraced and detached houses and owner-occupied flats. In 2017-2018, Aarhus saw rises of 1,1% for owner-occupied flats and 3,4% for terraced and detached houses.
Brikk’s director, Sebastian Beres, explains:
“The development in house prices in Aarhus is really remarkable. In most of the larger cities in the rest of the country, 2017-2018 saw a far smaller rise in house prices compared with the preceding years. While this downward trend has continued in most larger cities in 2018-2019, where prices have stagnated or fallen slightly, Aarhus has seen growth of almost 100% in price rises compared with last year. Many had expected Aarhus to follow the same trend as Copenhagen, but that has not happened. It was also expected that the many new-build projects would push down prices of older homes, but that does not seem to have happened either. Many people, in Denmark and abroad, have had their eyes opened to how attractive Aarhus is. This may help sustain similar price rises into 2020 as well.”
Aarhus stands out from other big cities
While house prices keep soaring in Aarhus, other big cities around the country have begun to see stagnation or a slight fall in house prices.
Looking at Jutland, Aalborg has seen a 6,6% fall in flat prices and a small rise of 0,8% in terraced and detached houses. In Herning, prices of terraced and detached houses have fallen by 6,2% and flat prices by 5%.
Turning to Copenhagen, house prices are falling here too. Terraced and detached houses have fallen 1,1% in price from 2018 to 2019 and flats have fallen 0,9% compared with last year.
New construction, international recognition and more cultural offerings may have influenced prices
One possible influence on, and reason for, the rising house prices in Aarhus may be that in recent years more attractive new-build homes have come up for sale, including in Ceres Byen and around the harbour.
Another is that in spring 2019 Aarhus was on the American travel magazine Condé Nast Traveler’s list of the 10 best cities in Europe to visit. Furthermore, back in 2017 Aarhus was named European Capital of Culture. The city is therefore seen as more and more attractive, not only to visitors but also to people moving there.
In addition, Aarhus has continued to develop the wide range of cultural experiences the city increasingly offers. These include Aros, Film i Skoven, the city’s various festivals and the many coastal attractions.
See the analysis of flats across the country here
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