Core Insights - European commercial property values continued to rise in Q4 2025, marking the sixth consecutive quarter of positive appreciation, with a 0.4% increase in Q4 and a 1.9% increase overall for the year [3][4]. Market Overview - Altus Group's Q4 2025 dataset included approximately €29 billion in assets under management across 16 countries, covering various property sectors [2]. - The overall valuation yields increased across all sectors, exerting slight pressure on property values despite a gradual move towards lower interest rates by central banks [4]. Sector Performance - **Residential Sector**: The top performer in 2025, with Q4 values increasing by 0.6% and a full-year increase of 3.7%, benefiting from strong cash flows due to above-average market rent increases [8]. - **Industrial Sector**: Also a strong performer, with quarterly value gains between 0.5%-0.7% and a 12-month increase of 2.6%, reflecting improved investor sentiment [8]. - **Office Sector**: The most subdued sector, with only a 0.1% increase in values for the year, following a decline of -1.4% in Q2 [8]. - **Retail Sector**: Values increased by 1.6% for the year, with high street shops leading the recovery as yields declined, resulting in a 0.7% uplift in Q4 [8]. Conclusion - The data indicates a sustained improvement in European commercial property values across all sectors, with industrial and residential sectors showing the most significant gains in Q4 2025 [5].

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].

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].