Data and in-depth analyses can pave the way to good investments

One of the department’s primary tasks is to provide investors with a deep understanding of movements in the real estate market, allowing customers to make well-informed decisions when investing.

Joseph Alberti, Head of Research at EDC Poul Erik Bech, explains: “Fundamentally, we serve as a classic support function with a wide range of tasks that we carry out for internal and external clients. One of our most important tasks is to assist our commercial real estate agents across the country, enabling them to provide our customers and investors with in-depth and objective analyses of the specific market. We have access to the most comprehensive property-specific data in the market—comprising publicly available data, internal data, and external sources that we dedicate substantial resources to keeping up-to-date. Therefore, we are well-equipped to deliver thorough analyses to our clients.”

Versatile tasks
Joseph Alberti continues: “No task is too small or too large for us. Through our extensive data resources, we can help customers and investors gain insights into specific areas. We can contribute with reports and in-depth analyses on supply and demand, rental analyses, sales price analyses, demographic analyses, transaction market analyses, buyer/seller advice (commercial due diligence), and much more.”

“Our task versatility is best described by the assignments we have completed for various companies. For example, we have assisted Clever in identifying the most ideal locations for charging stations in Denmark. We provide pension funds with in-depth and data-driven insights into all relevant aspects of project development, including tasks for PFA, PensionDanmark, PenSam, and Coop. Additionally, we have assisted companies such as COPI Group and Salling Group with analyses, including due diligence on the buyer’s examination of the seller’s properties before completing transactions. A well-executed due diligence minimizes the risk of surprises and ensures that final negotiations are conducted more informedly.”

The Research & Analysis department is also responsible for producing CityFact, which consists of 19 reports about a specific city or area in Denmark, created in collaboration with our local business departments across the country.

International perspective
In addition to producing reports and analyses for Danish and Nordic companies, Research & Analysis also maintains a global perspective. The international department at EDC Poul Erik Bech collaborates with one of the world’s largest real estate firms, JLL (Jones Lang LaSalle), and the Research & Analysis department plays a vital role in this collaboration, as Joseph Alberti explains:

“Our international department serves foreign clients interested in investing in Denmark and Danish clients looking to buy or lease premises abroad. Here, we often provide advice and contribute with reports and analyses about the Danish market so our international clients can gain an accurate understanding of Denmark’s position. We have a close partnership with JLL, which has entrusted us with several significant tasks. For instance, we were part of the record-breaking real estate transaction in the Nordic region in 2022, acting as buyer advisors for Brookfield as they entered the Nordic market. Additionally, they provide data to our datasets and insights from the broader world, while we offer data and insights about the Danish real estate market, including contributions to the JLL Nordic Outlook publication.”

JLL publishes the Nordic Outlook report twice a year, which investigates the real estate market in the four Nordic countries: Denmark, Sweden, Norway, and Finland. EDC Poul Erik Bech contributes data and insights about the various property segments in the Danish market.

Need for knowledge in a challenged market
The past few years have been challenging for the real estate market, leading institutional investors and funds to rely more on analyses and data when making investment decisions, according to Niclas Holm, Senior Research Analyst at EDC Poul Erik Bech:

“The market has been significantly affected by the pronounced inflation and rising interest rates, which naturally directly impact profitability, as investments in illiquid assets such as properties largely rely on external financing. Consequently, transaction volume has also declined considerably in 2023, by a staggering 50% in the Nordics over the past year. The expectation is that investment activity will increase again as inflation comes under control and interest rates are expected to fall. However, uncertainties also mean a greater need for risk assessments and analyses, leading us to handle a particularly high number of tasks for institutional investors and funds who seek well-founded resources and accessible data to make better investment decisions.”

He continues: “As an investor, it is crucial to approach an investment objectively. With an analytical approach, we allow our clients to do just that, as we help ensure that potential investments are made on the most well-founded data foundation possible. We offer area-specific analyses for the entire country, which can be tailored to each investor’s needs. Furthermore, we provide in-depth analyses of population development, housing supply, transaction volume, and more, which can assist investors in making the right decisions based on a well-founded knowledge base. So, get in touch with us, and together, we can determine how to support your investments with in-depth research and analysis in the best way possible.”

After a couple of years of uncertain winds over the real estate market, more positive trends appear to emerge. In the latest edition of Nordic Outlook, you can read more about when the real estate market is expected to stabilize again.

Research and Analytical Services
We specialize in providing tailored analyses to meet the diverse needs of both large institutional investors and private investors. Our comprehensive suite of services includes:

• Commercial Due Diligence:
• Thorough assessments of investment opportunities, encompassing all relevant aspects of project development, acquisition, and property operation.
• Data-driven insights to support legal professionals in housing court cases, ensuring a solid foundation for their arguments.
• In-depth examinations of rental prices and actual selling prices for owner-occupied properties, aiding clients in making informed decisions.
• Analysis of the relationship between supply and demand in major urban centers and smaller provincial towns, allowing stakeholders to grasp market dynamics.
• Detailed examinations of the evolution of housing stock by ownership type in specific, defined geographic areas providing a valuable perspective on the market.
• Our track record includes delivering high-quality analyses to esteemed organizations such as PFA, PensionDanmark, PenSam, Coop, COPI Group, and Salling Group. We’ve also conducted due diligence investigations for buyers evaluating potential property transactions, ensuring their investments are well-informed and secure.

Research & Analysis
If you are interested in having tailored analysis reports prepared, please contact us for a non-committal discussion on how we can assist you with analyses to support your decisions. Learn more about Research & Analysis at www.edc.dk/erhverv/research

Joseph Alberti, Head of Research at EDC Poul Erik Bech, +45 58588564, joal@edc.dk

Niclas Holm, Senior Research Analyst at EDC Poul Erik Bech, +45 58588564, niho@edc.dk