Is the European real estate market finally turning a corner? Our latest webinar, Real Estate Trends in 2026, brought together Dr. Jan Linsin (Head of Research, CBRE Germany), Mark Holz (Head of Strategy and Research, Lübke Kelber) and Alexandre Grellier (CEO, Drooms), to discuss where the market stands and what lies ahead. The webinar was moderated by Jasper Radü (PB3C) and drew on the findings of the Drooms Real Estate Trends Report 2026.
Transaction timelines stabilise – recovery takes shape
For the first time in five years of measurement, the average transaction duration in Europe has stopped rising. At roughly 363 days, it has stabilised, and in Germany, it is even declining slightly. Yet over 53% of surveyed professionals still feel transactions are taking longer, and 24% report declining deal certainty after due diligence. Shorter timelines, as Alexandre Grellier noted, do not automatically mean more closings.
Investment volumes, however, point to a rebound. CBRE data shows Germany heading towards €8 billion in Q1 2026, up from €7.2 billion a year earlier. The US and UK are recovering faster, while Germany’s valuation system continues to lag. A return to the €100 billion peak is unrealistic, but CBRE’s base case for Germany in 2026 sits at €35-40 billion.
The bid-ask gap: still the biggest hurdle
The mismatch between buyer and seller expectations remains the number one headwind, according to a CBRE survey of 900 European investors, ahead of geopolitical uncertainty and interest rates. A prolongation game between banks and investors is keeping distressed assets off the market. But with 10-year German government bond yields at 3.1% and Germany holding the highest NPL exposure in European commercial real estate according to the latest EBA data, the pressure is building. The panellists agreed: the game will end, not with a sudden flood, but as a slow, steady process.
Living leads, offices offer selective opportunities
Residential and living concepts remain the most sought-after asset class, driven by structural undersupply and predictable income. Logistics, data centres and hotels also attract strong interest – the hotel sector was Germany’s fastest-growing subsector by investment volume in 2025. Offices tell a split story: tertiary assets face near-zero demand, but prime products in top cities trade at historically low multiples, offering potential value plays for informed investors.
Unpredictability is the new constant
Five major external shocks in five years – from the pandemic to the Iran crisis – have made exit scenarios, as Mark Holz put it, “totally unpredictable.” Due diligence volumes on the Drooms platform have doubled or tripled, and Q&A activity is at record levels. The panellists agreed that technology and data will be decisive in reducing transaction timelines, even as complexity continues to grow. A more professional, data-driven approach to investing is emerging – and that is a positive sign.
What this means for investors
The European real estate market is not experiencing a dramatic turnaround, but a steady normalisation. Volumes are rising, activity is increasing, and capital is looking for opportunities. But the era of easy deals is over. Success will require deeper analysis, faster processes and better data.
Watch the full webinar recording, including live audience questions on residential yields and whether this is the “new normal,” here:
