Pan-European commercial property values rose for the fourth consecutive quarter in Q2 2025, according to Altus Group’s latest quarterly pan-European valuation analysis.
Values increased 0.6% over Q1 2025 and 2.8% year-over-year from Q2 2024. The pace of growth moderated slightly as cashflow gains tapered to 0.5% – the lowest level in four quarters. However, Altus said the steady yield impact reflects improving investor sentiment in a lower interest rate environment.
UK office values continued on an upward trajectory in Q2 2025, with values rising by 0.8% compared with the European average of 0.3%.
Phil Tily, senior vice president at Altus Group, said: “Four consecutive quarters of valuation improvements is a clear sign that market fundamentals are stabilising across Europe. Despite mixed macroeconomic conditions across the region, the CRE valuation trends point to a real estate market that is regaining its footing and gearing up for the next phase of the cycle.”
