The UK office market is recovering at a faster rate than the rest of Europe, according to Altus Group’s Q1 2025 pan-European research.
In Q1 2025, UK office values rose by 0.9%, slightly ahead of the European average of 0.8%. The UK still lags behind France, where office values jumped 3% over the same period, but it is outpacing other major markets such as Germany (+0.3%), the Netherlands (-1.1%) and Spain (-1.2%).
In terms of year-on-year performance, UK office values fell by 4.4% – the sharpest decline among major European economies. Germany reported a 1.5% drop, Spain 1.9% and the Netherlands 3.1%. France recorded an 8% increase in values over the past year.
Over a three-year period, the UK fared relatively better with office values declining by 6.4%, outperforming France (-7.1%), Germany (-9.6%) and the Netherlands (-11.1%).
Phil Tily, senior vice president at Altus Group, said: “We’re encouraged to see the slow but steady growth across all major property sectors for the third consecutive quarter, reinforcing cautious optimism in the European real estate market. The resilience of residential and industrial assets reflects ongoing investor appetite for sectors underpinned by strong cashflows and rental growth. While macroeconomic conditions remain mixed, the stabilisation in yields and improved fundamentals point to a maturing recovery cycle across the region.”
