LONDON, Nov. 11, 2025 (GLOBE NEWSWIRE) — Altus Group Limited (“Altus Group”) (TSX: AIF), a leading provider of commercial real estate (“CRE”) intelligence, today published a pan-European analysis of data for the third quarter of 2025 on valuation trends in the European real estate market.
Each quarter, Altus Group centralizes and aggregates CRE valuation data for the European market, gaining insight into the factors influencing commercial real estate valuations. The aggregate data set for the third quarter of 2025 included pan-European open-end diversified funds with assets under management of €28 billion. The funds cover 16 countries and primarily cover the industrial, office, retail and residential real estate sectors.
For the fifth quarter in a row, commercial property values in the pan-European valuation data set increased in the third quarter of 2025, increasing by 0.6%, matching the growth in the second quarter of 2025, and reaching 2.9% year-on-year compared to the third quarter of 2024. The pace of growth is primarily due to improved cash flow fundamentals, which have added 2.6% to value over the past 12 months. The remaining 0.4% is driven by a positive impact on yields, reflecting a sustained improvement in investor sentiment, supported by the move to lower interest rates.
“For the fifth quarter in a row, we appear to be seeing measured but sustained improvement across all sectors in Europe,” said Phil Tiley, senior vice president of Altus Group. “While no single sector is leading the recovery, the broad nature of the gains gives us confidence that the CRE recovery is taking hold.”
Key points by sector include:
- Residential: The residential sector remained the leading growth among the four major sectors in the third quarter of 2025, increasing by 0.7% compared to the second quarter of 2025. The value increased due to stronger cash flows and lower valuation yields.
- Industrial: The industrial sector fell in the rankings during the year, with values rising 0.5% below average in the third quarter of 2025 compared to the second quarter of 2025. Cash flow growth slowed in the third quarter of 2025, marking the lowest level among major sectors in the third quarter of 2025.
- Office: Facing the steepest decline in value during the market downturn, the office sector remained at its lowest level in the third quarter of 2025. Office sector valuations increased 0.5% from the second quarter of 2025.
- Retail: Retail sector valuation increased 0.6% in Q3 2025 compared to Q2 2025. While rising yields put pressure on values, this was offset by stronger cash flows, with retail rents rising 0.5% above average.
To download an overview of sector trends by asset class, please Click here.
About the Altus group
Altus brings together data, analytics, applications and expertise to deliver the insights needed to ensure optimal CRE performance. Industry leaders rely on our market-leading solutions and expertise to improve performance and reduce risk. Our global team of approximately 1,800 experts is making a lasting impact in an industry undergoing unprecedented change, helping to shape the cities where we live, work, and build thriving communities. For more information on Altus (TSX: AIF), visit www.altusgroup.com.
FOR MORE INFORMATION PLEASE CONTACT:
Jamie Bassett
Vice President of Communications Altus Group
+1-416-641-9788
[email protected]
