Altus Group Releases its Q2 2025 Pan-European Dataset Analysis on CRE Valuation Trends

Core Insights - European commercial property values have increased for the fourth consecutive quarter, with a rise of 0.6% from Q1 2025 and 2.8% year-over-year from Q2 2024, indicating a stabilizing market despite mixed macroeconomic conditions [3][4]. Market Overview - Altus Group's Q2 2025 dataset includes €29 billion in assets under management across 17 countries, covering industrial, office, retail, and residential sectors [2]. - The growth in commercial property values has moderated, with cashflow gains tapering to 0.5%, the lowest level in four quarters, yet the yield impact remains positive due to improving investor sentiment in a lower interest rate environment [3]. Sector Performance - Residential Sector: The top performer with a 0.9% value increase over Q1 2025, benefiting from stronger cash flow fundamentals despite rising yields [6]. - Industrial Sector: Values increased by 0.8% over Q1 2025, although cashflow appreciation slowed [6]. - Office Sector: Experienced a muted 0.3% value increase over Q1 2025, with cashflows largely unchanged despite tightening yields [6]. - Retail Sector: Values rose by only 0.3% over Q1 2025, impacted by minimal rent improvements and increased operating expenses [6]. - Other Sectors: Student accommodation assets saw a value increase of 1.9% over Q1 2025 [6].