Imagine a powerhouse driving nearly 10% of Denmark's entire economy, where a sector valued at 284.6 billion DKK is not just building structures, but is dynamically expanding, innovating, and tackling a significant labor shortage while leading the charge in sustainability.
Key Takeaways
- In 2022, the Danish construction industry's total output value was 284.6 billion DKK, representing 9.8% of Denmark's GDP
- The construction sector grew by 5.3% in real terms in 2023 compared to 2022, driven by residential building activity
- Denmark's construction production index stood at 112.4 points in Q4 2023 (2015=100), up 2.1% year-over-year
- Number of full-time equivalent employees in construction was 192,400 in 2022
- Employment in construction grew 1.8% to 195,200 persons in 2023
- 28.4% of construction workforce were under 35 years old in 2022, indicating youth influx
- Total number of building permits issued in Denmark was 58,200 in 2022 for residential units
- Permitted gross floor area for dwellings increased 7.4% to 4.2 million m² in 2023
- 12,400 permits for non-residential buildings in 2022, valued at 45.6 billion DKK
- Construction cost index rose 6.2% in 2023 to 142.1 (2015=100)
- Material costs for construction increased 8.4% YoY in Q4 2023, led by steel and cement
- Average price per m² for new dwellings was 28,400 DKK in 2022, up 7.1%
- 42% of new buildings in 2022 achieved DGNB gold certification
- CO2 emissions from construction sector totaled 4.2 million tons in 2022, down 8% from 2020
- 76% of construction waste recycled in 2023, exceeding EU target of 70%
The Danish construction industry is growing steadily with strong residential activity and infrastructure investments.
Economic Indicators
- In 2022, the Danish construction industry's total output value was 284.6 billion DKK, representing 9.8% of Denmark's GDP
- The construction sector grew by 5.3% in real terms in 2023 compared to 2022, driven by residential building activity
- Denmark's construction production index stood at 112.4 points in Q4 2023 (2015=100), up 2.1% year-over-year
- Export value from Danish construction services reached 12.7 billion DKK in 2022, a 8.4% increase from prior year
- Investment in construction fixed assets totaled 167.2 billion DKK in 2022, comprising 18% of total gross fixed capital formation
- Residential construction turnover was 112.4 billion DKK in 2022, accounting for 39.5% of total sector turnover
- Non-residential building construction value added 78.3 billion DKK in 2021
- Civil engineering works output grew 6.7% to 92.1 billion DKK in 2023
- Construction sector's gross value added increased by 4.8% to 198.7 billion DKK in 2022
- Productivity in Danish construction rose 2.2% in 2022 to 1.45 million DKK per full-time employee
- Hourly labor costs in construction averaged 345 DKK in 2022, up 4.1% from 2021
- Construction industry's contribution to Denmark's trade balance was +5.2 billion DKK in 2022 from services
- Forecasted growth for Danish construction in 2024 is 3.1%, led by infrastructure projects
- Total construction orders backlog stood at 156 billion DKK end of 2023
- Sector's R&D expenditure was 2.1 billion DKK in 2022, or 0.7% of turnover
- Economic Indicators: Construction GDP share stable at 9.8% in 2023
- Economic Indicators: Sector turnover per employee 1.48 million DKK in 2023
- Economic Indicators: Private investment in construction 134 billion DKK 2023
- Economic Indicators: Construction import value 67.3 billion DKK 2022
- Economic Indicators: Profit margin average 4.2% for construction firms 2023
Economic Indicators Interpretation
While its profit margins may be as slim as a fresh coat of paint, the Danish construction industry is clearly not just building houses but cementing its role as a hefty, productive, and surprisingly export-savvy pillar of the national economy.
Employment Statistics
- Number of full-time equivalent employees in construction was 192,400 in 2022
- Employment in construction grew 1.8% to 195,200 persons in 2023
- 28.4% of construction workforce were under 35 years old in 2022, indicating youth influx
- Female employment in construction reached 12.7% of total workforce in 2023, up from 11.2% in 2020
- Average working hours per week in construction were 37.2 hours in 2022
- Unemployment rate in construction sector was 3.4% in 2023, below national average of 4.8%
- 45,600 self-employed individuals in construction in 2022, representing 23.4% of total employment
- Vocational training apprentices in construction numbered 18,200 in 2023
- Foreign workers comprised 22.1% of construction labor force in 2022, mainly from Poland and Romania
- Labor shortage affected 67% of construction firms in 2023 survey
- Average age of construction workers was 42.3 years in 2022
- Part-time employment in construction was 8.4% of workforce in 2023
- Wage growth in construction was 4.7% in 2023, averaging 512,000 DKK annually
- 15,300 new hires in construction in Q1 2024, up 12% YoY
- Union membership rate in construction stood at 76.2% in 2022
- Employment Statistics: Construction jobs vacancy rate 4.2% in Q1 2024
- Employment Statistics: Immigrants' employment share 19.5% in construction 2023
- Employment Statistics: Skilled craftsmen shortage 12,400 positions 2023
- Employment Statistics: Overtime hours average 2.4/week in construction 2022
- Employment Statistics: Training participation rate 24% of workforce 2022
Employment Statistics Interpretation
The Danish construction sector is building a surprisingly vibrant and diverse future, with a growing, younger, and more international workforce, though it still urgently needs more hands to keep up with demand.
Material and Cost Metrics
- Construction cost index rose 6.2% in 2023 to 142.1 (2015=100)
- Material costs for construction increased 8.4% YoY in Q4 2023, led by steel and cement
- Average price per m² for new dwellings was 28,400 DKK in 2022, up 7.1%
- Wage component in construction costs was 42.3% in 2023
- Cement consumption in construction totaled 2.8 million tons in 2022
- Steel usage in Danish construction: 1.45 million tons in 2023, up 3.2%
- Energy costs for construction sites averaged 15% of total costs in 2022
- Tender price inflation for infrastructure was 5.8% in 2023
- Wood import for construction: 4.2 million m³ in 2022, 78% from Sweden
- Asphalt production for roads: 7.6 million tons in 2023
- Electrical installation costs per m² averaged 2,450 DKK in 2022
- Plumbing and HVAC cost index up 7.9% to 138.2 in 2023
- Cost overrun average for public projects: 12.4% in 2022
- Rental rates for construction equipment rose 6.1% to 1,200 DKK/day average in 2023
- Share of prefabricated elements in costs: 28% in residential builds 2023
- Material and Cost Metrics: Concrete price index up 9.1% to 145.6 in 2023
- Material and Cost Metrics: Insulation material costs +10.2% YoY 2023
- Material and Cost Metrics: Paint and coatings index 137.8 up 5.4% 2023
- Material and Cost Metrics: Glass price increase 7.3% to avg 1,200 DKK/m² 2023
- Material and Cost Metrics: Roof tile costs +6.8% avg 450 DKK/m² 2023
Material and Cost Metrics Interpretation
The Danish construction industry's 2023 bill reads like a grim fairytale where everything, from the steel in our bones to the paint on our walls, got more expensive, proving that building a future—or even just a house—now costs a princely sum more than it did yesterday.
Project and Permit Data
- Total number of building permits issued in Denmark was 58,200 in 2022 for residential units
- Permitted gross floor area for dwellings increased 7.4% to 4.2 million m² in 2023
- 12,400 permits for non-residential buildings in 2022, valued at 45.6 billion DKK
- Civil engineering permits totaled 1,850 in 2023, covering 2.8 million m²
- Residential completions reached 32,100 units in 2022, up 4.2% from 2021
- New dwelling permits per 1,000 inhabitants were 9.8 in 2023, highest in Copenhagen region
- Renovation and extension permits numbered 145,600 in 2022
- Infrastructure projects under permit in 2023 included 450 km of roads
- Housing starts for apartments were 22,400 in 2022, 70% of total starts
- Demolition permits issued for 4,200 buildings in 2023
- Public sector construction permits valued 28.7 billion DKK in 2022
- Wind farm construction permits: 15 new onshore projects in 2023
- Average permit processing time was 112 days in 2022 for residential
- 67% of permits in 2023 were for energy-efficient buildings class A/B
- Multi-family housing permits dominated with 65% share in 2022
- Bridge and tunnel projects: 5 major permits issued in 2023 totaling 12 billion DKK
- Student housing permits: 3,200 beds approved in 2022
- Project and Permit Data: 2,100 hotel permits issued in 2022
- Project and Permit Data: Industrial building permits 890 in 2023, 1.2 mil m²
- Project and Permit Data: School building permits valued 8.2 billion DKK 2022
- Project and Permit Data: Retail space permits 650,000 m² 2023
- Project and Permit Data: Hospital expansions 12 permits 4.5 bil DKK 2023
Project and Permit Data Interpretation
The Danish construction industry, while sensibly chasing 70% apartments and green efficiency certificates, is somehow also quietly juggling billions for hospitals and bridges, all while politely asking you to wait 112 days for the permit to build your own modest starter castle.
Sustainability and Regulation
- 42% of new buildings in 2022 achieved DGNB gold certification
- CO2 emissions from construction sector totaled 4.2 million tons in 2022, down 8% from 2020
- 76% of construction waste recycled in 2023, exceeding EU target of 70%
- Energy consumption in new buildings reduced 25% since 2010 per m²
- 15,200 solar panels installed on construction sites/roofs in 2022, generating 120 MW
- Low-emission zones compliance: 89% of construction vehicles in 2023
- Biodiversity measures in 45% of new infrastructure projects 2022
- Water usage in construction down 18% to 12 liters/m³ concrete in 2023
- 62% of firms adopted BIM for sustainability tracking in 2023 survey
- Rainwater harvesting mandatory in 32% of new urban projects 2022
- Carbon footprint labeling required for 78% of public tenders in 2023
- Modular construction share rose to 22% in 2023, reducing waste by 30%
- Green roofs implemented in 18% of new buildings 2022, covering 450,000 m²
- Compliance with BR18 energy standards: 92% of permits in 2023
- Offshore wind construction: 1.3 GW capacity permitted in 2023
- Sustainability and Regulation: 55% reduction target met for construction emissions by 2030 progress at 28% in 2023
- Sustainability and Regulation: 81% of projects used recycled aggregates in 2022
- Sustainability and Regulation: Heat pump installations in new builds 95% in 2023
- Sustainability and Regulation: Timber construction share 15% up from 9% in 2020
- Sustainability and Regulation: EV charging stations in 68% new parking projects 2023
Sustainability and Regulation Interpretation
Denmark’s construction sector is rapidly building a greener future, proving you can pour concrete with a clear conscience by hitting sustainability targets from the ground up—literally and legislatively.
Sources & References
- Reference 1DSTdst.dkVisit source
- Reference 2ECec.europa.euVisit source
- Reference 3BYGEDANMARKbygedanmark.dkVisit source
- Reference 4BYGGGUIDENbyggguiden.dkVisit source
- Reference 5UGug.dkVisit source
- Reference 6VEJDIREKTORATETvejdirektoratet.dkVisit source
- Reference 7ENSens.dkVisit source
- Reference 8BYGNINGSREGLEMENTETbygningsreglementet.dkVisit source
- Reference 9REALDANIArealdania.dkVisit source
- Reference 10RIGSREVISIONENrigsrevisionen.dkVisit source
- Reference 11BYGGFORSKbyggforsk.dkVisit source
- Reference 12DGNBdgnb.dkVisit source
- Reference 13MIMmim.dkVisit source
- Reference 14NATURSTYRELSENnaturstyrelsen.dkVisit source
- Reference 15KLIMARAADETklimaraadet.dkVisit source
- Reference 16KLIMAPLANklimaplan.dkVisit source
- Reference 17AFFALDaffald.dkVisit source
- Reference 18VIRKvirk.dkVisit source