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

Core Insights - European commercial property values have increased for the third consecutive quarter, with a 0.8% rise from Q4 2024 and a 2% increase year-over-year [3]. Summary by Sector - Residential Sector: The residential sector led with a 1.5% value increase over Q4 2024, driven by strong cash flow fundamentals and above-average rent growth. The Netherlands showed the strongest market performance [7]. - Industrial Sector: The industrial sector experienced a modest growth of 0.8% over Q4 2024, with steady yields and improved cash flows. Italy and Spain recorded the largest gains in this sector [7]. - Office Sector: Office values rose by 0.8% in Q1 2025 compared to Q4 2024, supported by yield improvement and strengthening cash flows. France had the largest valuation gains, while Germany and the U.K. saw declines [7]. - Retail Sector: Retail values increased by 0.5% over Q4 2024, with rising yields affecting shopping centers negatively, but benefiting high street shops and supermarkets. Retail warehouses were the top performers in this sector over the past year [7]. - Other Sectors: Student accommodation assets outperformed hotels, with a 3.0% value increase over Q4 2024 [7].