European commercial property values maintain an upward trajectory for fifth consecutive quarter
LONDON, Nov. 11, 2025 (GLOBE NEWSWIRE) -- Altus Group Limited ("Altus Group") (TSX: AIF), a leading provider of commercial real estate ("CRE") intelligence, today released its Q3 2025 Pan-European dataset analysis on European property market valuation trends.
Each quarter, Altus Group centralizes and aggregates CRE valuation data for the European market, pulling insights into the factors driving commercial property valuations. The Q3 2025 aggregate dataset included Pan-European open-ended diversified funds, representing €28 billion in assets under management. The funds cover 16 countries and primarily span the industrial, office, retail and residential property sectors.
For the fifth consecutive quarter, commercial property values across the Pan-European valuation dataset increased in Q3 2025, rising 0.6% to match the gains in Q2 2025 and reaching 2.9% year-over-year from Q3 2024. The pace of growth is primarily attributed to improving cash flow fundamentals which have added 2.6% to values in the past 12 months. The remaining 0.4% comes from the positive yield impact, reflecting a steady improvement in investor sentiment, aided by the shift to lower interest rates.
"For a fifth consecutive quarter, we appear to be witnessing a measured yet sustained improvement in values across all sectors in Europe," said Phil Tily, Senior Vice President at Altus Group. "While no single sector is leading the rebound, the broad-based nature of the gains gives us confidence that the CRE recovery is taking hold."
Key highlights by sector include:
- Residential: The residential sector remained the top performer of the four main sectors in Q3 2025 with a 0.7% value increase over Q2 2025. Values benefitted from strengthening cash flows and a reduction in valuation yields.
- Industrial: The industrial sector slipped down the ranking through the course of the year, with values rising by a below average 0.5% in Q3 2025 over Q2 2025. Cashflow appreciation slowed in Q3 2025, marking the lowest level across the main sectors in Q3 2025.
- Office: Having faced the steepest value write-downs during the market downturn, the office sector remained at the lower end of sector performance in Q3 2025. Office sector valued increased 0.5% over Q2 2025.
- Retail: The retail sector valued increased by 0.6% in Q3 2025 over Q2 2025. Although yields expanded putting downward pressure on values, this was offset by a strengthening in cashflows, with retail market rents having increased by an above-average 0.5%.
To download a review of the sector trends by asset class, please click here (https://can01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fassets.ctfassets.net%2F8jgyidtgyr4v%2F7JxNPiEDUmSL8TsJzpO75z%2F2941187c6edb89a25f395e513a45fd7b%2FAltus_Pan-European-Dataset_Q3-2025_WEB.pdf&data=05%7C02%7CHeather.Johnston%40altusgroup.com%7C6763e87d7ac44e971cfd08de2079211d%7C01dc41c3be9a4fa89af611a6564a4200%7C0%7C0%7C638983901863120160%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=OLvoM%2FvMgh7YDFnBS3s1qn8Ja1IptHsKfDOFnm240Ss%3D&reserved=0).
About Altus Group
Altus connects data, analytics, applications and expertise to deliver the intelligence necessary to drive optimal CRE performance. The industry's top leaders rely on our market-leading solutions and expertise to power performance and mitigate risk. Our global team of ~1,800 experts are making a lasting impact on an industry undergoing unprecedented change - helping shape the cities where we live, work, and build thriving communities. For more information about Altus (TSX: AIF) please visit www.altusgroup.com (http://www.altusgroup.com).
FOR FURTHER INFORMATION PLEASE CONTACT:
Jaime Bassett
Vice President, Communications, Altus Group
+1-416-641-9788
jaime.bassett@altusgroup.com (mailto:jaime.bassett@altusgroup.com)
