Strong rental gains boost UK office value growth

Office space values in the UK rose by 0.8% during the quarter, compared to the European average of 0.3%, as Altus claimed favourable yields reflect a positive investment sentiment boosted by strong rental gains.

However, the data also revealed that year-on-year UK office sector growth has stalled at 0%, pushing its values down by 7%.

Each quarter, Altus analyses CRE valuation data for the European market, creating insights into the factors driving commercial property valuations.

The data covers 17 countries and primarily spans the industrial, office, retail and residential property sectors.

For the fourth consecutive quarter, commercial property values across the Pan-European valuation dataset increased in Q2 2025, rising 0.6% over Q1 2025 and 2.8% year-on-year from Q2 2024.

Phil Tily, senior vice president at Altus Group, commented: “Four consecutive quarters of valuation improvements is a clear sign that market fundamentals are stabilising across Europe.

“Despite mixed macroeconomic conditions across the region, the CRE valuation trends point to a real estate market that is regaining its footing and gearing up for the next phase of the cycle.”