DC_Studio/Envato
Real estate transactions in Europe are taking longer than ever, with the average deal now stretching to 363 days, according to the 2025 Real Estate Trends Report from data room specialist Drooms. This marks a significant increase from 342 days the previous year, reflecting the growing complexity of deals driven by tighter ESG regulations and heightened legal scrutiny.
The trend is most pronounced in Germany, where transactions take an average of 405 days, and in the UK, where the figure reaches 499 days. In contrast, France and Italy report notably shorter timelines of 329 and 319 days, respectively.
The report, which combines data from Drooms’ virtual data rooms with insights from 81 property experts, reveals that 54% of respondents experienced longer transaction times over the past year, with 34% noting delays of more than 20%. Data volumes per transaction have surged by nearly 20%, reaching 3.6 gigabytes in 2024 compared to 3.0 gigabytes the previous year, largely due to increasing ESG and legal requirements.
Despite these delays, investor appetite remains robust. A full 59% of respondents plan to expand their international (i.e., cross-border) property investments in 2025, while 32% aim to maintain their current level. Residential (44%) and logistics (20%) are the most attractive asset classes, while office space continues to languish with just 3% of investor interest. Cross-border deals are gaining traction but face challenges from differing national regulations and local market complexities.
More data to process also means longer timelines
Commenting last October at the Expo REAL in Munich, Alexandre Grellier, CEO of Drooms, noted a shift in market sentiment, observing more optimism and a resurgence in deal activity compared to the previous year. He highlighted a 17.5% increase in demand for Drooms' services, reflecting the gradual recovery of the market. However, Grellier also pointed to the paradox that despite advancements in data room technology, transaction times continue to lengthen. “The volume and complexity of information required to satisfy ESG and regulatory requirements have grown enormously,” he said. “This means more data to process, more stakeholders to coordinate, and ultimately, longer timelines.”
While Drooms has expanded its offerings to manage these complexities, including enhanced AI-driven tools for document analysis and compliance tracking, Grellier acknowledges that technology alone cannot overcome the structural hurdles of modern real estate transactions. “We’ve reached a point where the bottleneck isn’t just about accessing data faster; it’s about the capacity to interpret, verify, and make decisions based on that data in an increasingly regulated environment,” he explained.
Grellier’s observations align with the report’s findings that more investors are looking beyond their domestic markets for opportunities. “Internationalisation is accelerating, and while it brings diversification benefits, it also introduces layers of complexity,” he noted. This is particularly relevant as nearly 42% of respondents cited national regulatory differences as the biggest challenge to cross-border transactions.
Grellier remains optimistic, emphasising the need for strategic adaptability. “The market is moving, and those who can effectively navigate regulatory complexity and leverage advanced data management tools will be well-positioned to capitalise on emerging opportunities.”
REFIRE: It's likely the extended timelines aren’t just a temporary setback—they’re a fundamental challenge to how real estate deals are now done. As data volumes surge and regulatory demands tighten, mastering the art of rapid decision-making will separate the winners from the rest. Those who can turn complexity into clarity will seize the advantage, while others risk drowning in data overload.