European Commercial Property Price Index: October, 2024

Step By Step

The Green Street Commercial Property Price Index, which measures pricing of a broad swathe of Pan-European commercial properties, is positive for the third quarter in a row (+0.6%; +1.3% YTD), marking a steady upwards path throughout this year. Uptick within the residential sector (+1.8%) is bolstered by the strength of operating fundamentals and increasing liquidity. Meanwhile, the industrial (+1.4%) sector benefits from income growth, despite the momentum softening lately. Pricing of hotel, retail and data centre sectors held steady, whilst office pricing continues to drift lower, as sentiment remains tepid amongst buyers and lenders for B/B+ quality stock.

“Property prices have grown gradually throughout the year, confirming the early positive signals that we highlighted back in January when comparing commercial real estate returns to fixed income alternatives.” said Marie Dormeuil, Senior Analyst at Green Street. “The public market’s view also strengthened in the third quarter, favouring the industrial, hotel and data centre sectors whilst being less negative of office.”