The group’s Q1 2025 Pan-European dataset analysis shows UK office values rose by 0.9% during the first quarter, while the European average was 0.8%.

Fortunes were mixed among specific European countries. German assets rose by 0.3% while contractions of -1.1% and -1.2% were recorded in the Netherlands and Spain, respectively.

UK office assets underperformed on a longer-term basis.

When analysing year-in-year data, Altus Group found UK office values fell by -4.4% which was the sharpest decline among major European economies.

In contrast, German asset values fell -1.5% while Spanish and Dutch assets only contracted -1.9% and -3.1%, respectively.

Elsewhere, Altus Group residential assets to be the top performing real estate sector in the first quarter.

Asset values in this sector rose by 1.5% from the end of 2024.

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The Netherlands was the strongest performing country in regards to residential assets, but a UK breakdown was not made available.

Commercial property values across the Pan-European valuation dataset increased for the third consecutive quarter in Q1, rising 0.8% over Q4 and 2% year-over-year.

All sectors are seeing gains, albeit with a mixed set of results from a yield and cashflow perspective.

“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,” said Phil Tily, senior vice president at Altus Group.

“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 stabilization in yields and improved fundamentals point to a maturing recovery cycle across the region.”