Can You Invest in Greenland Real Estate?

Can you invest in real estate in Greenland?

Experts say buying a home in Greenland is not impossible, but it does not work like a typical real estate purchase. Under Greenland’s real estate rules, individuals cannot own land. Instead, all land is treated as jointly owned and is managed by local municipalities.

To build a home or purchase a home, a buyer must apply for a site allotment. This grants the right to use a specific piece of land for a specific purpose, such as residential or commercial use. The allotment is generally indefinite, and when a home is sold, it can be transferred with government approval.

However, the allotment right cannot be bought or sold separately from the building, and it cannot be mortgaged. In other words, what a buyer purchases is not land, but a building and the permit tied to that site.

In general, Greenland allows property acquisition or applications for land-use rights only for people who hold Danish citizenship, or for those who have lived in Greenland for at least two years and have paid taxes there.

There are exceptions. Foreign individuals and companies can apply for a special exemption. Approval is reviewed case by case, based on factors such as the applicant’s ties to Greenland and the potential impact on the local housing market. The Greenland government allows exemption applications, but it has said investment is welcomed only when it supports local demand and respects national priorities. In cities such as Nuuk, rental supply is limited and waitlists can be long.

Buyers must also consider local approval requirements. Even small changes, such as adding a carport to an existing home or changing a building’s use, require approval from local authorities. If a buyer purchases a property without key infrastructure—such as water and sewer service or satellite communications—any changes also require applying for site-specific permits before work begins.

Experts say that from an investment perspective, Greenland often offers more symbolic value than a clear path to profits. They note that the public housing system and the limited short-term market make rental returns difficult to evaluate. Because land ownership is not allowed, they add, traditional real estate investment strategies may not apply easily.

At the same time, there are cases suggesting that land-use rights, buildings, and business operations can still have economic value. In a recent case related to the expansion of Nuuk Airport, the Greenland Compensation Board recognized compensation for a business operator based on lost rental income, even though the land itself was not privately owned.

BY HOONSIK WOO [woo.hoonsik@koreadaily.com]