Altus Group Reports Flat European Property Values
News related to:Altus Group · 2 min read
LONDON, Nov. 09, 2026 /CourierPR/ -- Today, Altus Group released its Q3 2026 Pan-European dataset analysis on European property market valuation trends. The release highlighted that property values were flat in Q3, ending eight consecutive quarters of appreciation. Residential and retail values continued to rise, while industrial values and office values joined offices in negative territory.
The analysis, which was conducted by Altus Group Limited, a leading provider of commercial real estate intelligence, included a Pan-European open-ended diversified funds dataset representing approximately €29 billion in assets under management. These funds covered 16 countries and primarily spanned the industrial, office, retail, and residential property sectors.
According to the report, Pan-European commercial property values were flat in Q3 2026, marking a significant shift from the two-year recovery that had seen values appreciate. Quarterly appreciation was 0.0%, after gains of 0.6% in Q1 and 0.3% in Q2. This ended eight consecutive quarters of positive appreciation since the recovery began in Q3 2024. Values remained 1.3% higher year-over-year.
Rising valuation yields were the main constraint on performance, reducing values by 0.7% during the quarter. Positive contributions from cashflow fundamentals and changes in capital expenditure assumptions, each adding 0.3%, offset the pressure and left overall property values flat.
Key highlights by sector include:
- Residential values increased by 0.5% over Q2 2026, with a positive cashflow contribution of 1.3% more than offsetting a -1.0% yield impact. Residential values rose in every reported market, with Sweden and the Netherlands leading at 1.3% and 1.2%, respectively. - Industrial values declined by 0.3% from Q2, marking the sector's first negative quarter during the two-year recovery. A positive cashflow contribution of 0.4% was more than offset by a -0.7% yield impact. - Office values fell by an additional 0.2% in Q3 compared to Q2, following declines of 0.1% in each of the first two quarters of 2026. Both yield and cashflow put downward pressure on values, with office occupancy at 85% and market rents largely static for the quarter. Germany remained furthest adrift in the dataset from a cashflow standpoint and is the one office market where both in-place and market rents were down over the year. - Retail values increased by 0.2% over Q2, supported by a 0.4% cashflow contribution that exceeded the negative 0.3% yield impact. Retail warehouses were the strongest-performing retail subtype, with values rising by 0.9%. - Student accommodation properties moved from the best to worst performance in the rankings, with values down -0.8% in Q3 compared to Q2, the result of continued yield pressure but with cashflows being scaled back.
To download a review of the sector trends by asset class, click here.
Altus Group is a leading provider of commercial real estate 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.