Investment turnover in the Danish commercial property market increased by a whopping +880% in Q4 2009, although this was from a low base it did push the level of investment back to early 2008 figures, which resulted in a rise across the whole Scandinavian region of +200%, according to Capital Economics.

Despite the rebound appearing impressive, distressed sales formed a large chunk of the investment volume and although the Central Bank’s figures has suggested that the credit conditions have eased slightly in Q4, the total bank lending was -15% lower than the peak levels of 2008 and furthermore the banks are expected to tighten up lending in Q1 2010.

The report stated: ‘What’s more, the occupier market outlook is far from rosy. Indeed, the -7% fall in Danish gross domestic product during the recession will impact occupier demand for some time. Employment has already fallen by more than -5% since Q3 2008 and, worryingly, the pace of job cuts increased sharply in Q4 2009.’

The Danish economy grew by +0.2% in Q4 after the +0.3% rise in Q3 2009 and whilst not impressive is inline with the Euro-zone average.