06:38 AM EDT, 08/19/2024 (MT Newswires) -- Altus Group ( ASGTF ) on Monday said property values across the Pan-European valuation dataset remained largely unchanged in the second quarter, according to its latest commercial real estate dataset analysis.

Property values across the Pan-European valuation dataset registered a slight sequential decline of 0.06% over the first quarter, the analysis found.

"This marks the smallest downward revision since values began declining in Q3 of 2022," said Phil Tily, senior vice president at Altus Group ( ASGTF ). "Over this eight-quarter period, the property values within this dataset have dropped by a total of 16.5%."

The industrial sector continues to be the strongest performer, with values up 0.5% quarter-over-quarter. Cashflow gains for this sector added 1.1% to values.

A minor downward revision in projected cashflows was seen in the office sector, resulting in further write-downs with values declining by 0.8% over the first quarter.

In the retail sector, values turned positive in the second quarter, up 0.2%, but with mixed results across property types. Parks and warehouse properties were the top performing ones, followed by supermarkets. There were minimal write-downs among shopping centers and high street assets.

The residential sector saw a cashflow upside of 0.6% that canceled out a minor yield offset, resulting in 0.3% increase in value.

The second-quarter aggregate dataset included Pan-European open-ended diversified funds, representing 29 billion euros in assets under management. The funds cover 17 countries and primarily span the industrial, office, retail and residential property sectors.

Despite the European Central Bank's 25 basis point cut in the base interest rate in June, yields continued to move out for a ninth consecutive quarter, putting further downward pressure on values though at a moderating pace.