Drooms Annual Real Estate Transaction Barometer 2023 finds that: Transactions are taking longer than ever.

March 5, 2024
  • Average transaction in 2023 took 342 days – new record
  • 70% of respondents experienced longer time to transaction completion in the last 12 months
  • Logistics and residential are set to be the most popular asset classes in 2024
  • 51% of respondents plan to expand their international property investments in 2024

Frankfurt am Main, 26 February 2024 – In its latest annual Real Estate Transaction Barometer, Drooms, a leading data room provider in Europe, has surveyed real estate experts from across Europe for the second consecutive year about their perspectives on the transaction markets and their own 2024 investment plans. The Transaction Barometer consists of an anonymised analysis of all European transactions processed via Drooms throughout 2023 and two supplementary surveys of almost 150 real estate professionals. Of these, 70 per cent were property transactions. The remaining 30 per cent was accounted for by corporate finance, energy and legal deals, among others.

Around 51% of respondents stated that they intend to increase their international property investments in 2024, and around 15% would like to reduce their transaction volume. It is striking that across all European markets, more than 70% of respondents stated that the average transaction duration of a property deal has increased in the last twelve months. An analysis of the extensive Drooms database revealed a new record value of 342 days (previous year: 335 days) across Europe. In Germany, the figure rose to 374 days. Within the largest European property markets, only the UK (391 days) and the Netherlands (375 days) had higher durations, while France (302 days) and Italy (242 days) had significantly shorter transaction durations. 

Data rooms become indispensable –at all stages of the buy-hold-sell cycle

“With our constantly evolving platform, we offer our clients a smart and innovative solution to reduce the time to transaction compared to traditional processes. Modern data rooms, especially those using AI tools, increase efficiency and deal security. They simplify both the secure management of ever-increasing volumes of data required in the wake of regulation and developments within ESG, as well as facilitating seamless collaboration with internal and external stakeholders. This is hugely beneficial, especially in times of skills shortages and declining margins. This is why data rooms are increasingly becoming the industry standard not only for transactions, but also for the holding phase of property,” comments Alexandre Grellier, CEO of Drooms.

According to the survey, the most attractive asset classes for 2024 in the respective home country in descending order are logistics/industrial (34%), residential (20%), healthcare (10%), office and hotel (approx. 9% each). Around 33% cited different national regulatory requirements as the biggest obstacle to cross-border property investments, followed by a lack of local market knowledge (around 30%) and the current interest rate level (around 26%). Respondents cited the DACH region (65%), the UK (40%) and the CCE (Central and Eastern European Countries) region (30%) as the most promising markets.

The Transaction Barometer can be downloaded here: https://drooms.com/real-estate-transaction-barometer-2023/

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