Altus Group Releases its Q3 2025 Pan-European Dataset Analysis on CRE Valuation Trends

Core Insights - Altus Group reported a 0.6% increase in commercial property values across Europe for Q3 2025, marking the fifth consecutive quarter of growth, with a year-over-year increase of 2.9% from Q3 2024 [3][4] - The growth is primarily driven by improving cash flow fundamentals contributing 2.6% to values over the past year, while a positive yield impact accounted for the remaining 0.4% [3] Sector Performance - Residential Sector: The top performer with a 0.7% value increase over Q2 2025, benefiting from strengthening cash flows and reduced valuation yields [6] - Industrial Sector: Experienced a below-average growth of 0.5% in Q3 2025 compared to Q2 2025, with cash flow appreciation slowing [6] - Office Sector: Continued to lag behind other sectors, with a 0.5% increase in value over Q2 2025, following significant write-downs during the market downturn [6] - Retail Sector: Values increased by 0.6% in Q3 2025 over Q2 2025, with cash flow strengthening offsetting the downward pressure from expanded yields [6]