Denmark’s residential rental market offers attractive returns, with gross yields averaging 4.21% in Q4 2025, slightly down from 4.26% in Q2 2025, according to recent data. Gross rental yield measures the annual rental income as a percentage of property purchase price before taxes and maintenance costs. Net yields, after accounting for expenses such as repair costs, property taxes, and agent fees, are typically 1.5% to 2% lower.
Copenhagen, Denmark’s capital, remains the most expensive city for apartments, though rental yields are comparatively lower. One-bedroom apartments in central Copenhagen S now cost around €601,700, offering a gross yield of 3.70%. Two-bedroom units are priced at €802,500 with a 3.16% yield, while three-bedroom apartments reach €1,137,200, giving just 2.57% return. Similarly, in Copenhagen K, a one-bedroom apartment costs €736,300 with a 3.71% yield, while two- and three-bedroom units generate 2.65% and 3.24% respectively. Across Copenhagen, studios average 4.09%, one-bedroom apartments 3.75%, and two-bedroom apartments 2.51%, with larger units offering even lower returns. Overall, the average gross rental yield in Copenhagen stands at 2.93%, reflecting the city’s high property prices.
In contrast, Aarhus and Aalborg present stronger rental returns relative to property costs. Aarhus, Denmark’s second-largest city, has an average gross yield of 4.58%. Studios command 5.54%, one-bedroom apartments 5.26%, and two-bedroom units 3.97%. Even three-bedroom apartments in Aarhus offer 3.54%, making the city a more attractive option for rental investors seeking higher returns on mid-sized properties.
Aalborg, a smaller northern city, posts the highest yields among the three, averaging 4.75%. One-bedroom apartments in Aalborg cost about €173,400 with a 5.12% yield, while two- and three-bedroom apartments deliver 4.69% and 4.45% respectively. This indicates that smaller cities, with lower property costs but stable rental demand, can provide better returns for investors compared to high-priced Copenhagen.
The data shows a clear trend: as property prices rise in larger urban centres, gross rental yields tend to compress, whereas smaller cities maintain higher relative returns. For prospective investors, understanding gross versus net yields is key. After accounting for taxes, maintenance, and agent fees, investors in Copenhagen can expect net returns around 1.5% to 2% lower than the gross figures, while Aarhus and Aalborg still maintain comparatively strong net yields.
Denmark’s residential rental market is also influenced by a robust housing demand driven by urbanisation, stable economic growth, and a preference for city living among professionals. In Copenhagen, high property costs reflect the city’s status as Denmark’s commercial, cultural, and political hub, attracting both domestic and international tenants. Aarhus and Aalborg, with their growing education, industrial, and service sectors, are witnessing steady rental demand, offering opportunities for investors looking beyond the capital.
Denmark provides a diverse rental market with varying opportunities depending on city, apartment size, and location. While Copenhagen may offer prestige and stability, Aarhus and Aalborg deliver higher yields and better cash flow potential for rental investors.
