Commercial real estate: valuations are rising again in Europe

According to the latest data published by Altus Group, valuations increased in the first quarter of 2026, confirming a recovery trend that began at the end of 2025.

A second consecutive rise in valuations

Altus Group's pan-European analysis, covering nearly €30 billion of assets spread across 16 European countries, reports an average increase in valuations of 0,7% in the first quarter of 2026, following a rise of 0,4% recorded in the previous quarter.

This development marks a change in trend after several years characterized by a price correction linked to rising financing costs and economic uncertainty.

For investors, these results are an encouraging sign regarding the gradual stabilization of the European real estate market.

Residential properties confirm their attractiveness

Among the different asset classes analyzed, the residential sector showed the best performance during the quarter.

Driven by continued strong demand in many European cities, this segment continues to attract investors looking for resilient assets that generate stable income.

Logistics and some commercial assets are also showing signs of improvement, while the office market continues to show more contrasting developments depending on the country and the quality of the buildings concerned.

Investors who remain selective

While the recovery seems to be taking hold, industry professionals point out that investors remain particularly attentive to asset quality.

Buildings with strategic locations, good environmental performance and strong rental potential continue to be favored.

Conversely, older assets or those requiring significant renovation work remain more exposed to value adjustments.

This selectivity reflects the profound changes in the European real estate market, marked by new environmental requirements, evolving uses and the increased search for energy performance.

What are the impacts on the building sector?

The gradual recovery of valuations could have positive repercussions on the entire real estate and construction sector.

A renewed investor confidence is likely to support renovation, restructuring, and transformation projects for existing assets. Energy efficiency upgrades, decarbonization, and improvements to building comfort are expected to continue playing a central role in the strategies of owners and asset managers.

In a context where environmental regulations are strengthening at the European level, value creation increasingly relies on the modernization of the existing building stock.

A recovery to be confirmed

Despite these positive signs, the market continues to face several challenges, including evolving interest rates, geopolitical uncertainties and lasting transformations in working patterns.

However, the results for the first quarter of 2026 confirm a gradual improvement in the fundamentals of the European commercial real estate market. After several years of correction, investors seem to be regaining confidence, even if the recovery remains uneven across sectors and regions.

The evolution of the next few quarters will determine whether this dynamic is sustainable over time or whether it is simply a technical rebound after a period of strong contraction.

To download the sector trend analysis by product category, here.

Illustrative image of the article via Depositphotos.com.