European real estate transactions stabilise

The Drooms Real Estate Trends Report 2026 reveals a stabilisation in European real estate transaction times for the first time in years, though at a persistently high level.

European Real Estate - Drooms

While the average transaction duration in 2025 remained at 363 days, the report highlights an ongoing increase in complexity, data demands, and closing uncertainties. This environment is driving the growing importance of digital and AI-powered processes.

The report, based on Drooms' 2025 transaction data and a survey of 80 real estate experts, provides key insights:

The average European real estate transaction duration held steady at 363 days in 2025. However, there are significant regional differences, with the UK seeing a substantial increase to 577 days, while Switzerland remains efficient at 261 days. Despite the stabilisation, 53% of surveyed experts still perceive transaction times as increasing, and 24% note a declining probability of deal closure after due diligence, indicating persistent uncertainty.

Residential properties continue to be the most attractive asset class for investors (43% of respondents), maintaining their role as a stable market core. Office properties, however, continue to lose appeal, with only 1.3% finding them most attractive and 36% rating them least attractive. Logistics (15%) and infrastructure-based assets like data centres (14%) are also drawing investor interest.

Nearly half (49%) of respondents believe AI will enable them to process more deals with the same staff, primarily by increasing efficiency in the preparatory phases. Another 15% expect AI to make transactions faster and more cost-effective. AI's role is seen as supporting human decision-making, especially in data analysis, document structuring, and due diligence.

Securing financing (46%) and managing regulatory requirements (28%) remain the biggest hurdles for real estate businesses. Investors are acting selectively and cautiously, with most planning investments between €1 mln and €20 mln, and a quarter aiming for over €50 mln. The report notes that challenges extend beyond financing to finding attractive deals and skilled personnel, with regulatory complexity adding further pressure.

The average data volume per real estate transaction remained high at around 3.5 GB in 2025. This, along with increasing user numbers, is driven by regulatory demands, ESG documentation, and audit requirements. Efficient and secure management of large, sensitive data volumes is crucial for transaction success.

Cross-border investments are still relevant but are being approached with greater caution. Most respondents (58%) plan to invest no more than 25% of their capital outside their home market. Spain, the DACH region, and CEE are popular destinations, with investors prioritising regional proximity, market transparency, and regulatory reliability. Differing regulatory frameworks (47%) are cited as the biggest challenge for international deals.