Altus Group Releases its Q1 2025 Pan-European Dataset Analysis on CRE Valuation Trends

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European commercial property values rose for the third consecutive quarter

LONDON, May 13, 2025 (GLOBE NEWSWIRE) -- Altus Group Limited ("Altus”) (TSX: AIF), a leading provider of commercial real estate ("CRE”) intelligence, today released its Q1 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 Q1 2025 aggregate dataset included Pan-European open-ended diversified funds, representing €29 billion in assets under management. The funds cover 17 countries and primarily span the industrial, office, retail and residential property sectors.

"We’re encouraged to see the slow but steady growth across all major property sectors for the third consecutive quarter, reinforcing cautious optimism in the European real estate market,” said Phil Tily, Senior Vice President at Altus Group. "The resilience of residential and industrial assets reflects ongoing investor appetite for sectors underpinned by strong cashflows and rental growth. While macroeconomic conditions remain mixed, the stabilization in yields and improved fundamentals point to a maturing recovery cycle across the region.”

Commercial property values across the Pan-European valuation dataset increased for the third consecutive quarter in Q1, rising 0.8% over Q4 and 2% year-over-year. All sectors are seeing gains, albeit with a mixed set of results from a yield and cashflow perspective.

Key highlights by sector include:

• Residential: The residential sector was the top performer in Q1 with a 1.5% value increase over Q4 2024. The improvement continued to be driven by comparatively strong cash flow fundamentals with above-average rent growth for the second consecutive quarter. The Netherlands was the strongest market in Q1, supported by increased market rents.
  
  
• Industrial: After leading performance in Q4 2024, the industrial sector saw modest growth in Q1 2025, up 0.8% over Q4 2024. Yields held steady over the quarter, but a further strengthening of cashflows and an increase in market rents and contract rents helped industrial values rise marginally for a fourth consecutive quarter. While values improved across all industrial market, Italy and Spain had the largest gains in Q1.
  
  
• Office: Office values rose 0.8% in Q1 2025 over Q4 2024, up for three consecutive quarters. Yield improvement and strengthening cash flows contributed to the rise in values. France saw the largest valuation gains, whereas Germany and the U.K. experienced declines in value this quarter.
  
  
• Retail: The retail sector also saw modest growth in Q1, with values rising 0.5% over Q4 2024. Rising yields held back values for shopping centres in Q1, while declining yields boosted values for high street shops and supermarkets. Retail warehouses continue to be the top performing asset within the sector over the past year.
  
  
• Other: Outside of the main sectors, student accommodation assets surpassed hotels and led performance this quarter, with values rising by 3.0% over Q4 2024.
  

To download a review of the sector trends by asset class, please click here.

About Altus Group

Altus connects data, analytics, 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 ~2,000 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:

Elizabeth Lambe
Director, Global Communications, Altus Group
+1-416-641-9787
elizabeth.lambe@altusgroup.com