Until 2022, the prices of owner-occupied homes in Nuuk only went one way: upwards. In the past three years, activity in the housing market has changed significantly with much longer waiting times, which describes the time it takes to sell a home.
The average waiting times for owner-occupied homes that were put up for sale were only 75 days in 2022. But then mortgage interest rates rose and the waiting periods were up to 300 days until the third quarter of 2025, according to an analysis that the Bank of Greenland has published in its annual report for 2025.
Housing prices are affected by both the interest rate level and the supply of housing, where there have been a particularly large number of project apartments in recent years.
- The average price per square meter throughout the period has been around DKK 31,000. When the general price development in society is taken into account, this implies a significant real decline in housing prices. In real terms, the price level in 2025 is approximately at the same level as the period before the COVID-19 pandemic, writes the Bank of Greenland in its analysis.
Determining factor
A decisive factor that has influenced the development of housing prices - or lack thereof - is the rising mortgage interest rates, "which hit in 2022 and maintained a higher level in the following years".
- This is also reflected in the number of transactions not being significantly reduced, but that the average size of homes traded is slightly smaller than before, the analysis states.
However, there is good news for existing homeowners in the capital, the bank assesses, writing:
- The real price decline makes it likely that more buyers will be in the market in the coming time.
The bank justifies the good news for homeowners by saying that several housing projects have now been completed, which puts a damper on supply.
- This will probably contribute to the decrease in waiting times and support housing prices, the Bank of Greenland assesses, which, however, emphasizes that several factors can play a role and pull in different directions:
Low growth can pull down
- However, the outlook for the housing market in the coming years is not only determined by supply. The housing market depends to an equal extent on demand, which is directly dependent on the overall economic development. Continued low growth and limited income growth can affect the market. Conversely, a rise in real wages, possible interest rate cuts or renewed economic activity can contribute to increasing demand.
If you compare the housing price development in Nuuk with cities such as Copenhagen and Torshavn, there is a significant difference, as the graphs show. In both Copenhagen and Torshavn, housing prices have continued to increase in 2024 and 2025, in contrast to Nuuk.
