European CRE Values Rise 0.4% in Q4 2025, Industrial and Residential Lead Gains
Event summary
- Altus Group's Q4 2025 Pan-European dataset analysis shows commercial property values rising 0.4%, slightly below the 0.6% gain in Q3 2025.
- Full-year 2025 values increased 1.9% over 2024, marking six consecutive quarters of positive appreciation.
- Residential and industrial sectors led gains with 0.6% increases in Q4, while office and retail saw muted growth at 0.2% each.
- Valuation yields rose across all sectors despite central banks' gradual interest rate cuts.
The big picture
Altus Group's Q4 2025 analysis highlights steady but modest gains in European commercial real estate values, with industrial and residential sectors outperforming. The data reflects a broader trend of gradual recovery post-downturn, though valuation yields rising across all sectors signal potential headwinds. With €29 billion in assets under management analyzed, the report provides critical insights into sector-specific dynamics amid shifting monetary policies.
What we're watching
- Sector Performance
- Whether industrial and residential sectors can sustain their momentum amid rising valuation yields.
- Interest Rate Impact
- How central banks' interest rate policies will affect commercial property valuations in 2026.
- Market Recovery
- The pace at which European CRE markets fully recover from the two-year downturn.
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