European Commercial Property Price Index: July, 2025

Business As Usual

The Green Street Commercial Property Price Index, which measures pricing of a broad swathe of European commercial properties, trended higher in the first half of ’25, despite the uninterrupted noise on the macro front. Industrial, residential, and data centre assets keep outperforming, climbing more than one percent, thanks to gradual income growth. With rates stable, the residential sector has seen some yield compression in select geographies. Retail and hotel pricing has been largely stable, with the former’s sequential price discovery improving during 1H while the latter is benefitting from continued healthy fundamentals. Meanwhile, self-storage pricing retreated ~200 bps, mostly dragged down by the U.K.’s underperformance. Office pricing signals have been mixed, albeit there are tentative signs of approaching the trough.

“Property prices have held steady year-to-date, defying continued noise and uncertainty on the macro front.” said Marie Dormeuil, Senior Analyst at Green Street. “Recent positive signals from the public REIT equity market and tightening spreads on investment-grade unsecured debt signals modest upside momentum to near-term pricing changes. Whether this manifests in bidding tents after the summer remains to be seen, albeit a growing number of transactions crossing the finish line in select geographies during the past six weeks across all sectors is a clear positive.”