Pan-European CRE Values Cool as Office Sector Struggles
Event summary
- Q2 2026 saw a 0.3% increase in Pan-European commercial property values, down from 0.6% in Q1.
- Residential sector led gains with 0.7% growth, while office values stagnated.
- Annual appreciation slowed to 1.9%, with industrial and retail sectors showing mixed trends.
- Valuation yields continued expanding, offsetting cashflow-driven growth.
The big picture
Altus Group's Q2 2026 analysis highlights a maturing CRE recovery, with two years of positive appreciation now showing signs of moderation. The €30 billion dataset reveals sector-specific trends, including residential strength and office weakness, reflecting broader shifts in demand and investor sentiment across Pan-European markets.
What we're watching
- Sector Differentiation
- How the residential sector will sustain its outperformance amid broader market cooling.
- Yield Dynamics
- Whether yield expansion will continue tempering appreciation across sectors.
- Office Recovery
- The pace at which office values stabilize or decline further, particularly in Germany.
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