European commercial property values closed out 2025 with continued upward trajectory
LONDON, Feb. 10, 2026 (GLOBE NEWSWIRE) -- Altus Group Limited ("Altus Group") (TSX: AIF), a leading provider of commercial real estate ("CRE") intelligence, today released its Q4 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 Q4 2025 aggregate dataset included Pan-European open-ended diversified funds representing approximately €29 billion in assets under management. The funds cover 16 countries and primarily span the industrial, office, retail and residential property sectors.
During the final quarter of 2025, European property markets continued to record steady gains with commercial property values across the Pan-European valuation dataset rising 0.4%, slightly behind the sequential 0.6% rise recorded in Q3 2025 and below the 0.9% in comparison to Q4 2024. The dataset values rose 1.9% overall in 2025 over the prior year, with Q4 marking the sixth consecutive quarter of positive appreciation and recovering a small portion of the setback the market experienced during the two-year downturn.
Of significance in Q4 2025, valuation yields rose across all sectors putting slight pressure on values, despite the Central banks' policy of gradually moving to lower interest rates. A further widespread strengthening of cashflows ensured appreciation remained positive across each of the main property types in Q4 2025.
"The latest data from Altus' Pan-European valuation dataset shows sustained improvement in values across all European market sectors," said Phil Tily, Senior Vice President at Altus Group. "In what was a closely contested quarter across the sectors, industrial and residential topped the rankings with largest cashflow gains, both registering a 0.6% increase in values in the fourth quarter of 2025, while office and retail saw a more muted increase at 0.2% each."
Key highlights by sector include:
- Residential: The residential sector remained the top performer throughout 2025 with Q4 2025 values increasing by 0.6%, and full year values increasing 3.7% - a 2.5% increase over 2024. Strong cash flows from above average market rent increases benefited values, although increases had slowed in the second half of the year.
- Industrial: The industrial sector was also a top performer in Q4 2025 and maintained a level of consistency throughout the year with quarterly value gains ranging from 0.5%-0.7%, which equated to an above average 12-month increase of 2.6%. This marks a percentage point increase over annual results for 2024 (1.6%). Investor sentiment towards the sector remains strong as valuation yields moved in more than those of any other main property type over the course of the year.
- Office: Office was the most subdued sector with only a fractional 0.1% increase in values for the year. Values in the sector faltered earlier in the year, down -1.4% in Q2, and then closed out 2025 with a relatively muted 0.2% uplift.
- Retail: The retail sector also came in below average for the year with values up 1.6%. The sector has made slow progress from a cashflow standpoint, with market contract rents improving by just 0.6% and 0.8% over the year. High street shops have been the pace setters in the last year as yields began to decline, helping values rise by an above average 2.5%, which included a 0.7% uplift in the final three months of 2025.
To download a review of the sector trends by asset class, please click here.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Jaime Bassett
Vice President, Communications, Altus Group
+1-416-641-9788
jaime.bassett@altusgroup.com
