Property values were flat in Q3, ending eight consecutive quarters of appreciation
Residential and retail values continued to rise, while industrial joined offices in negative territory
LONDON, Nov. 09, 2026 (GLOBE NEWSWIRE) -- Altus Group Limited ("Altus Group") (TSX: AIF), a leading provider of commercial real estate ("CRE") intelligence, today released its Q3 2026 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 2026 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.
Pan-European commercial property values were flat in Q3 2026, as renewed pressure on yields paused the market's two-year recovery. Quarterly appreciation was 0.0%, after gains of 0.6% in Q1 and 0.3% in Q2. This ended eight consecutive quarters of positive appreciation since the recovery began in Q3 2024. Values remained 1.3% higher year-over-year.
Rising valuation yields were the main constraint on performance, reducing values by 0.7% during the quarter. Positive contribution from cashflow fundamentals and changes in capital expenditure assumptions, each adding 0.3%, offset the pressure and left overall property values flat.
"Q3 marks an important shift in the European property cycle," said Phil Tily, Senior Vice President, Valuation Advisory at Altus Group. "The broad recovery in values has paused as rising yields increasingly outweigh the gains from improving property fundamentals. But this isn't yet a broad-based correction. Cashflows remained positive, and residential and retail values are still improving. What happens next will depend on whether rental and occupancy fundamentals can remain strong enough to absorb continued yield pressure."
Key highlights by sector include:
- Residential: The residential sector continued to be the strongest performing asset class in Q3, with values increasing 0.5% over Q2 2026. Cashflow added 1.3% to values, more than offsetting a -1.0% yield impact. Residential values rose in every reported market, led by Sweden at 1.3% and the Netherlands at 1.2%.
- Industrial: The industrial sector values declined 0.3% from Q2, marking the sector's first negative quarter during the two-year recovery. A positive cashflow contribution of 0.4% was more than offset by a -0.7% yield impact.
- Office: Office values fell an additional 0.2% in Q3 vs. Q2, following declines of 0.1% in each of the first two quarters of 2026. Both yield and cashflow put downward pressure on values, with office occupancy materially below the other major sectors at 85% and market rents largely static for the quarter. Germany remained furthest adrift in the dataset from a cashflow standpoint and is the one office market where both in-place and market rents were down over the year.
- Retail: Retail values increased 0.2% over Q2, supported by a 0.4% cashflow contribution that exceeded the negative 0.3% yield impact. Retail warehouses were the strongest-performing retail subtype, with values rising 0.9%.
- Other: Student accommodation properties moved from the best to worst performance in the rankings with values down -0.8% in Q3 vs. Q2, the result of continued outward yields movement but with cashflows being scaled back.
To download a review of the sector trends by asset class, click here.
About Altus Group
Altus Group is a leading provider of commercial real estate ("CRE") intelligence, anchored by ARGUS - the industry's go-to software for valuation and performance analytics. For more than two decades, Altus has played a vital role in empowering CRE professionals with the analytics and trusted advice they need to make high-stakes decisions with confidence. The world's CRE leaders rely on our market-leading solutions and expertise to drive performance and manage risk. Our people around the world 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, Marketing Communications, Altus Group
+1-416-641-9788
jaime.bassett@altusgroup.com
