The valuation department of Cushman & Wakefield Echinox assessed properties totaling 5.5 million square meters in 2024, with a combined value exceeding EUR 8.5 billion. This reflects a 10% increase in the portfolio compared to 2023, based on the department’s reported turnover.

Most valuation reports were related to bank loan guarantees, accounting for over 60% of the total volume. However, this category contributed only 33% to the overall turnover, as it included many small properties.

Key Market Trends Impacting Valuations

Bogdan Sergentu, Head of Valuation at Cushman & Wakefield Echinox, highlighted several factors influencing real estate values:

 “The evolution of yields, rents, sales, vacancy rates, but also the incentives granted to tenants by owners, have a high degree of influence pertaining to real estate values. In 2024, we witnessed a marginal yield adjustment which was offset by rent indexations. Regarding the office segment, even if there was a decrease in vacancy, the tenant incentives remained consistent. Moreover, the significant retail sales’ growth has led to an increase in turnover rent revenues in most shopping centers or retail parks”.

Another increasingly important factor in real estate valuation is ESG policies. Recent years have seen the introduction of new benchmarks related to building energy efficiency, which now directly impact property values based on energy classification.

Looking ahead, Sergentu expects similar market drivers to shape 2025 but also highlights external risks:

“The same drivers will likely influence property values in 2025. However, this year will also be shaped by political developments, including the spring presidential elections and the ongoing war in Ukraine. Government measures to reduce deficits, potential austerity and a possible downgrade of the country’s credit rating could negatively impact the real estate values.”

Sector-Specific Insights

Retail: The retail sector remained the most resilient in terms of asset value growth, driven by increased sales among key retailers. Vacancy rates declined, and struggling retail units were quickly replaced without prolonged vacancies. Additionally, retailers continued to expand, and foot traffic in shopping centers followed an upward trend.

Office: The office sector faced another challenging year, with only a partial reduction in vacancy rates. The high level of incentives offered by landlords continued to impact revenues, offsetting the benefits of inflation-driven rent indexations. However, a slowdown in new office developments may help rebalance the market in the coming years.

With nationwide coverage, the Cushman & Wakefield Echinox valuation department remains a strong and stable team, boasting an average of over 20 years of experience in the field.