Europe’s commercial real estate investment markets are poised for recovery, with values rising for the second consecutive quarter across all sectors, according to the latest data from Cushman & Wakefield.
The firm’s DNA of Real Estate report found values on Europe’s high street grew by 2.3% over the past six months, logistics values rose by 1.4% in H1 2024 having fallen -12.4% from their peak, with offices increasing by 0.6% following the sector’s widely-publicised -21.8% drop.
Rental growth remained positive across all sectors in Q2 2024, with prime rents rising 0.8% for office, high street and logistics assets on a quarterly basis at the European level – the sixth consecutive quarter in which rents have risen across all three sectors on a quarterly basis.
Prime office yields now average 5.53% across the 45 markets tracked by Cushman, up from a low of 3.87% in Q1 2022 and back to levels last seen in mid-2014.
Nigel Almond, head of data analytics at Cushman & Wakefield, said: “The relatively stronger growth for logistics and high street markets compared to the office sector reinforces the trends in Cushman & Wakefield’s recently-published TIME Score Index with both sectors in the inflection phase at a European level, and offices just below.
“At these current levels of value growth, the scales remain finely balanced and there will be variation at the city and asset level across all property types. However, for best-in-class and well-located assets, momentum is shifting to the positive. For those assets which sit slightly off-pitch, or harbour some imperfections, recovery will take longer.”
