Denmark has long been a global leader in work-life balance, consistently ranking among the best countries for employee well-being and productivity.

With an average workweek of 26–30 hours, Danish businesses have proven that shorter hours don’t equate to lower output—quite the opposite. The country maintains a high GDP per capita and low unemployment rates, all while fostering a flexible, balanced workforce.

If the UK were to embrace a Danish-style working model, the property sector—particularly commercial real estate and Purpose-Built Student Accommodation (PBSA)—would need to evolve. From declining demand for large office spaces to shifts in student living preferences, developers, investors, and operators must rethink their strategies to accommodate a future built on flexibility.

Impact on Commercial Property

Declining Demand for Large Office Spaces

One of the most immediate effects of a shift towards a Danish work model would be a significant reduction in the need for traditional office spaces. Denmark’s flexible work culture means that 45% of Danes work remotely at least part-time, a trend mirrored in other Nordic countries.

If UK businesses adopt similar practices, we could see a 25–30% drop in demand for conventional office spaces by 2030. Many companies will opt to downsize their physical footprints, focusing on quality over quantity when it comes to office environments.

This shift isn’t just theoretical. The UK has already seen an increase in hybrid working, with recent reports showing that 65% of UK workers prefer a mix of home and office work. As a result, large office developments could face higher vacancy rates unless landlords and developers pivot to meet new workplace demands.

The Rise of Hybrid and Co-Working Spaces

As large office spaces decline in demand, co-working hubs, serviced offices, and flexible workspace models will see increased investment. The global co-working market is projected to grow at a 17% CAGR by 2027, reflecting the rapid shift towards more collaborative, on-demand work environments.

Instead of maintaining expansive corporate headquarters, businesses may invest in smaller, strategically located office hubs that offer flexibility for teams to meet in person when needed. This could lead to a boom in suburban and regional co-working spaces, particularly in areas with lower rental costs and high quality of life.

For property investors, this shift presents an opportunity to repurpose existing office spaces into multi-use, adaptable environments that cater to the new ways of working.

Impact on the PBSA Sector

Shifts in Student Housing Demand

Denmark’s higher education system prioritises student well-being, with state-funded tuition, housing subsidies, and a strong focus on work-life balance. In contrast, the UK’s student experience has been shaped by rising tuition costs, financial pressures, and a growing mental health crisis.

A shift towards Danish-style working culture in the UK could encourage students to seek accommodation that prioritises mental well-being, social interaction, and hybrid learning spaces. PBSA developers must respond by integrating wellness areas, communal hubs, and ergonomic study zones into their designs.

We’re already seeing a shift in this direction, with PBSA providers increasingly incorporating mindfulness spaces, co-living models, and fitness facilities to attract students who prioritise well-being over traditional student living setups.

Growing Regional Markets

A remote-friendly working culture could also have regional implications for the PBSA sector. Traditionally, London and major university cities have dominated the student accommodation market due to proximity to employment opportunities. However, if flexible work becomes the norm, students may choose to study in smaller, more affordable cities with a better quality of life.

This could lead to increased demand for PBSA in emerging university towns, driving investment towards regions previously overlooked in favour of larger metropolitan areas.

A Future Built on Flexibility

The Danish working model has demonstrated that work-life balance and high productivity can coexist. If the UK follows suit, both the commercial property and PBSA sectors must evolve to accommodate changing expectations around work, learning, and living.

How DiSRUPT Recruitment Agency Can Help

At DiSRUPT, we understand the challenges and opportunities facing these industries. As a B Corp-certified, specialist recruiter in PBSA, property, and flexible workspaces, we help businesses find top-tier talent who can navigate this shift and drive the industry forward.

👉 Looking for recruitment solutions tailored to the future of PBSA and property? Partner with DiSRUPT to build a workforce that’s ready for change.

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