European commercial property values rise 0.7% in Q1 2026, marking steady recovery since 2024.

European commercial real estate values increased by 0.7% in Q1 2026, improving from 0.4% in Q4 2025, continuing a recovery trend that began in Q3 2024 after two years of declines. The gains were mainly driven by stronger cashflow fundamentals, including rising contract and market rents, despite a slight increase in valuation yields that tempered growth. Residential properties led with a 1.2% rise, followed by steady industrial and retail gains, while office values showed modest improvement amid ongoing sector challenges. This data reflects cautious optimism in the market as investors navigate complex economic and geopolitical conditions.