Europe Shined in ’25

London, 12th January 2026 – The Green Street Commercial Property Price Index, which measures pricing of a broad swathe of European commercial properties, continued its gradual recovery in the fourth quarter of ’25, up two percent in the year, in-line with its ’24 performance. Across traditional property sectors, industrial and residential transaction volumes bounced back nicely despite both sectors losing some rent growth momentum. Fundamentals are starting to turn a corner in average-quality office and retail, but pricing eased slightly considering still-limited investor interest. Niche property sector performance was also mixed, as data centre pricing marched c.1% higher quarter-on-quarter, while self-storage and hotel pricing was largely unchanged.

“European and U.S. property prices walked in lockstep during ’25, increasing two percent each in local currency terms, albeit in US$ terms Europe’s CPPI outperformed the U.S. by the widest margin since 2020.” said Marie Dormeuil, Senior Analyst at Green Street. “Corporate credit spreads have remained tight, pointing to upward pressure for CRE performance relative to the fixed income market over the course of the first half of ’26. This is somewhat muted by the signal from the public REIT market, which continues to trade at a modest Gross Asset Value discount, thus suggesting that private values are unlikely to surge anytime soon.”