Altus Group Unveils Q2 2024 European CRE Valuation Insights
Altus Group Releases Q2 2024 Analysis on European CRE Trends
LONDON, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Altus Group Limited (“Altus Group” or the “Company”) (TSX: AIF), a premier provider of asset and fund intelligence within the commercial real estate (“CRE”) sector, has released its Q2 2024 dataset analysis focused on property valuation trends throughout Europe.
Quarterly Insights into Commercial Property Valuations
Each quarter, Altus Group compiles and standardizes CRE valuation data across the European market, allowing for in-depth insights into the various factors influencing commercial property values. The aggregate dataset for Q2 2024 included open-ended diversified funds across Europe, accumulating a noteworthy €29 billion in assets under management. These funds span 17 countries, prominently covering sectors such as industrial, office, retail, and residential properties.
Reported Trends in Property Values
“Property values across the Pan-European valuation dataset remained largely unchanged in Q2 2024, registering a slight sequential decline of just -0.06% since Q1 2024,” stated Phil Tily, Senior Vice President at Altus Group. “This represents the smallest drop since the downward trend began in Q3 of 2022. Over the span of eight quarters, overall property values within this dataset have decreased by a cumulative total of 16.5%. The minimal decline in Q2, combined with a recent interest rate reduction, suggests improved stability as the pace of value declines is significantly moderating.”
Interest Rate Impact and Market Dynamics
Despite a 25 basis point cut by the European Central Bank, yields have continued to expand for a ninth consecutive quarter, exerting additional downward pressure on property values, albeit at a slower rate. Across all sectors, minor single-digit yield increases were recorded, contributing to a -0.7% change in values throughout the dataset. Notably, a slight improvement in cashflows has allowed appreciation levels to shift positively in all major sectors except for office properties.
Sector Highlights from the Dataset
Key highlights by sector include:
- Industrial: This sector proves to be the strongest performer, with values rising by 0.5% compared to Q1 2024. Cashflow gains contributed positively, adding 1.1% to values, which offset the marginal negative yield impact of -0.5%.
- Office: A slight decrease in projected cashflows, coupled with a higher than average yield increase, has led to further reductions, resulting in a 0.8% decline in values since Q1 2024.
- Retail: For the second quarter, values have turned positive, recording a 0.2% increase, with diverse results across different property types. Parks and warehouse properties excelled with a 3.1% increase, while supermarkets saw a smaller improvement of 0.3%. Conversely, shopping centers and high street assets experienced negligible downturns of -0.6% and -0.1%, respectively.
- Residential: With a cashflow improvement of 0.6%, overshadowing a minor yield offset of -0.4%, this sector registered a 0.3% increase in value since Q1 2024.
Overview of Altus Group
Altus Group is recognized as a leading provider of asset and fund intelligence for the commercial real estate market. The company delivers intelligence as a service to a global clientele through a connected platform that integrates industry-leading technology, advanced analytics, and advisory services. Supported by the trust of major leaders in the CRE industry, Altus Group empowers real estate investors, developers, owners, lenders, and advisors to effectively manage risks and boost performance yields throughout the asset and fund lifecycle. Altus Group operates globally, with its headquarters in Toronto, employing approximately 2,900 professionals across North America, EMEA, and Asia Pacific. For additional information regarding Altus Group (TSX: AIF), please visit www.altusgroup.com.
Contact Information
FOR FURTHER INFORMATION PLEASE CONTACT:
Elizabeth Lambe
Director, Global Communications, Altus Group
+1-416-641-9787
elizabeth.lambe@altusgroup.com
Frequently Asked Questions
1. What is the main focus of Altus Group's Q2 2024 report?
The report centers on the analysis of valuation trends within the European commercial real estate market for the second quarter of 2024.
2. How much assets under management were included in the dataset?
The Q2 2024 aggregate dataset included €29 billion in assets under management across various sectors.
3. Which property sector showed the most significant value increase?
The industrial sector demonstrated the strongest performance with a value increase of 0.5% over the previous quarter.
4. What trend was observed in office property values?
Office properties experienced a decline in values by 0.8% due to reduced projected cashflows and increased yield.
5. Who can be contacted for more information regarding the report?
For further inquiries, contact Elizabeth Lambe, Director of Global Communications at Altus Group, via +1-416-641-9787 or elizabeth.lambe@altusgroup.com.
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