The economic growth was disappointing in 2012 with a negative GDP of -0.6 %, whilst expectations for 2013 point towards a renewed postive GDP of 0.7 %. A weak private consumption is the main reason for the low growth, but there seems to be a large potential in the private consumption since the savingsratio is at a record high, interest rates are record low and the payout of retirementfunds that took place last year.

On this basis the development in the property market has been disspointing with a total return in 2012 of 3.8 % against an expectation amongst the marketparticipants of 5.8 %. Especially the total return in the industrial segment has been under pressure whereas the residential segment has topped with a total return of 6.7 %.

The office vacancy rates in Denmark have stabilised at 9.3 % at the end of 2012. The vacancy rate of retail has increased in the capital area and stood at 4.6 % in the beginning of 2013 - an increase of 0.8 percentage points compared to 12 months earlier.

The property investment turnover has in the last three years stabilized in the region of DKK 20 bn. per annum with a slight upward trend. There continues to be good interest from foreign investors, especially for retail property that represented 77 % of the total turnover in 2012. In total, international investors represented approx. 40 % of the transaction volumen in Denmark.

Going forward we expect the turnover to continue to improve together with the visibility. Demand for residential properties continues to be high in 2013 especially in Copenhagen and Aarhus.