Student Housing 2025 - Copenhagen Q2

Since January 2024, a total of 2,611 Purpose Built Student Accommodation (PBSA) units, across 13 properties, have been constructed in Copenhagen and Frederiksberg. The PBSA developments are mainly located in the areas Copenhagen S, Copenhagen SW, Valby and Frederiksberg. Despite the increased supply from new construction, demand remains high, with an average of 3.5 students per PBSA unit. This entails a sustained upward pressure on rent levels, which have increased by more than 2% in the past six months. By 2032, an additional 6,247 PBSA units are planned constructed, of which 2,553 will be ready within the next 2.5 years.

Privately Owned PBSA Dominates The Market
I In the Copenhagen and Frederiksberg municipalities the num-ber of enrolments in Higher Education (HE) programmes is currently 102,695. This is a slight decrease of 979 enrolments compared to the previous year. The number of PBSA units in the two municipalities is currently estimated to be approx. 28,000. On average this corresponds to 3.5 students per PBSA-unit. For students enrolled in HE-programmes in Copenhagen and Frederiksberg, it is both natural and preferable to live in the same municipalities. In addition, studies indicate that a considerable number of students attending RUC in Roskilde and DTU in Lyngby also choose to live in Copenhagen, by which the actual demand – and the resulting imbalance – may be even higher.

 Privately Owned PBSA Dominates The Market
Privately owned PBSA dominates the supply of student accommodation. Of the total stock, 61% consist of unsubsidised, privately owned PBSA, while the remaining 39% is made up of subsidised youth housing types and units owned by non-profit foundations and similar organisations.

 Average Rent 
The PBSA rent levels vary significantly depending on location and whether the units are subsidised or privately owned. In Copenhagen K, the average monthly rent is around DKK 8,100, whereas the rent in areas outside the city centre, such as Copenhagen NW, Valby and Vanløse is approx. DKK 6,500. However, newbuild PBSA units in these areas can reach rent levels exceeding DKK 8,000.

Development In Rent Level
Average rents in PBSA units have risen significantly over the past decade. In particular, privately owned developments with market rent push the average rent level upwards as the proportion of higher-end PBSA units increases. In central Copenhagen districts, the average monthly rent has increased by 44% from less than DKK 6,000 in 2015 to over DKK 8,000 in 2025. In the areas outside Copenhagen city centre, the rent has increased by 58% in the same period. These rent increases are generally higher than the rent development seen in the family housing segment in the same period.

Transactions With PBSA Properties
In the past 12 months, eight PBSA properties have been sold in the Copenhagen area, incl. the property “The Mark”, located in Brøndby. The properties have an average size of 18,526 sqm comprising 504 units. The average transaction price was DKK 53,088 psm. In Copenhagen, the yield is typically in the range 4.0%-4.5% while yields in suburban areas are typically 50-75 bps higher.

Outlook
The current PBSA pipeline in Copenhagen and Frederiksberg includes 6,241 units across 58 developments. More than 65% of this pipeline, specifically 4,124 units, is expected to be delivered in the districts Copenhagen S, Sydhavnen (Copenhagen SW), Valby and Nordhavn. The units are expected ready for occupation in the period from August 2025 to August 2032.

More Social Youth Housing In Sight
Of the pipeline, 37% of the PBSA units are non-profit units, whereas 63% are privately owned, unsubsidised units. This reflects a change compared to previous years, where new construction was predominantly driven by private developers. In the short term, more than 40% of the total pipeline is expected completed within the next 2.5 years, corresponding to 2,553 PBSA units. The largest ongoing project is located in the August Schade neighbourhood at Islands Brygge, where 332 PBSA units are expected completed by May 2027.