If in many countries, rents are a key element in turning around the economy, you should know that Denmark has passed a law against rents. We already know that, like us, you will be shocked after this news. But there is an explanation for everything. Before thinking that this is fake news, let’s try to understand what it is. And especially to understand what the economic situation in Denmark is. It is known.
The pandemic emergency has disrupted every pre-existing equilibrium. But if in many countries, real estate prices have decreased or increased in an attempt to improve the economy, the same cannot be said for Denmark. This nation has therefore made a choice against the tide, which has left even economists perplexed. So, if you are curious to understand and learn more about it, you only need to do one thing. Read the next few lines and stay with us at Realigro! Let’s begin by starting our column today!
How come Denmark has attacked rents? There are several reasons. But there is only one, and it is the most important one: to regulate excessive speculation in the rental market. You should know that in Denmark, given the extremely high cost of living, most people prefer to sign a lease. Instead of buying a new house. Therefore, we can say with certainty, that the Danish real estate scene is not dominated by buying and selling, but by renting. Based on this statement, it is necessary to clarify the situation further. Most owners of rental properties have requested a rise in rental prices in order to be able to afford renovation work. It is unfortunate that many, however, have used this ploy to be able to subsequently sell the property in question at higher prices. Or worse: not carrying out the declared renovation work.
To encourage this blockade towards speculation, there is also the green component. Copenhagen, in fact, wants to encourage change in all new and old structures. A change focused on sustainability, respect for the environment and renewable energy. The whole of Denmark is moving, despite being already quite eco-friendly, to protect and incentivize:
But the debate still remains open. The Danish Parliament is conflicted about how much such an action may not be a hindrance to the economic development of the country. Especially in a critical period such as the one we are experiencing. So, if you want to know more, know that you can stay informed every day. How? Consulting our portal Realigro Blog. Every day you will find lots of news not only on this topic. But on much more. So, as the young people would say on their social pages: stay tuned! We are waiting for you with our unique and above all international content!
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