Altus Group Releases its Q1 2026 Pan-European Dataset Analysis on CRE Valuation Trends

European commercial property values saw continued gains, accelerating vs. Q4 2025

LONDON, May 11, 2026 (GLOBE NEWSWIRE) -- Altus Group Limited (“Altus Group”) (TSX: AIF), a leading provider of commercial real estate (“CRE”) intelligence, today released its Q1 2026 Pan-European dataset analysis on European property market valuation trends.

Each quarter, Altus Group centralizes and aggregates CRE valuation data for the European market, pulling insights into the factors driving commercial property valuations. The Q1 2026 aggregate dataset included Pan-European open-ended diversified funds representing approximately €30 billion in assets under management. The funds cover 16 countries and primarily span the industrial, office, retail and residential property sectors.

To kick-off 2026, European property markets continued to record steady gains with commercial property values across the Pan-European valuation dataset rising 0.7%, improving from 0.4% in Q4 2025, signalling a moderate acceleration in recovery. This seventh consecutive quarter of positive appreciation extends the recovery that began in Q3 2024 after a two-year period of market-wide write-downs.

Cashflow fundamentals were the primary contributor to this quarter’s gains, providing 1.0% of value change, supported by continued growth in contract and market rents. Valuation yields expanded for a second consecutive quarter, tempering appreciation slightly by -0.1%. Over the full year, values have risen by 1.7%, entirely driven by cashflow improvements. Despite these recent positive trends, values are still net -1.6% per annum over three years and at a -0.9% per annum deficit when traced back over a five-year period.

“The quarter’s gains underscore a recovery that remains cashflow-led, with improving contract and market rents doing most of the heavy lifting,” said Phil Tily, Senior Vice President at Altus Group. “At the same time, modest outward yield movement is a reflection of ongoing market caution as investors and valuers navigate a complex macro and geopolitical backdrop.”

Values continued to rise in all sectors with the pace of improvement accelerating in all property types, with the exception of offices.

Key highlights by sector include:

Residential: The residential sector was the strongest performing property type in Q1 2026, with values increasing by 1.2%, extending its lead over the market average. Performance was driven by robust cashflow growth contributing 2.0% to values, with in-place rents strengthening more than the overall benchmark average, although this was partially offset by outward yield movement (-0.8%) as valuers applied continued caution.
Industrial: Industrial assets delivered steady, market aligned performance in Q1 2026, with values rising 0.7%, supported by a 1.0% positive cashflow aspect, and a slight pull back from yields of -0.1%. This sector has been a fairly consistent performer, having dropped below the overall benchmark appreciation only once in the last year.
Office: Office values rose a modest 0.2% in Q1 2026, remaining the weakest performing of the main sectors. Cashflow fundamentals improved, adding 0.7% to values supported by a broader market backdrop of strengthening prime rents. These gains were tempered by a -0.5% drag from increased capital investment, highlighting ongoing structural challenges within the sector.
Retail: Retail values increased 0.7% in Q1 2026, matching the overall market with gains reported across each property subtype. With yields largely stable and limited capital drag, cashflow gains translated more directly into value growth, led by retail parks and warehouses, which benefited from yield compression and above-average market rent growth.
Other: In Q1 2026, the “other” type outperformed the main sectors, led by student accommodation where values rose 2.5% for the quarter. Performance was entirely cashflow driven, with market rents increasing 2.1% quarter-over-quarter and 10.5% annually, reinforcing the sector’s continued attraction from an economic fundamentals standpoint.

To download a review of the sector trends by asset class, please click here.

About Altus Group

Altus Group is a leading provider of commercial real estate (“CRE”) intelligence, anchored by ARGUS – the industry’s go-to software for valuation and performance analytics. For more than two decades, Altus has played a vital role in empowering CRE professionals with the analytics and trusted advice they need to make high-stakes decisions with confidence. The world’s CRE leaders rely on our market-leading solutions and expertise to drive performance and manage risk. Our people around the world are making a lasting impact on an industry undergoing unprecedented change – helping shape the cities where we live, work, and build thriving communities.
For more information about Altus (TSX: AIF) please visit www.altusgroup.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Jaime Bassett
Vice President, Marketing Communications, Altus Group
+1-416-641-9788
jaime.bassett@altusgroup.com

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