Conditions on the property market continue to tighten: transactions are taking longer, ESG requirements are increasing and raising capital remains a challenge. If you want to be successful in this environment, you need to streamline processes and act faster.
We discussed how this can be achieved in this year’s webinar on the Drooms Real Estate Trend Report 2025. We were joined by Christiane Conrads (Partner at PwC, ESG and regulatory expert), Timo Tschammler (Managing Partner at TwainTowers, transaction market expert) and Drooms CEO & Co-Founder Alexandre Grellier.
The webinar focussed on three topics that will shape the market in 2025:
Transactions take longer and “time kills deals”
A look at the figures shows that transactions are taking longer and longer. In Europe, the average duration is now 363 days (19 days more than in the previous year). In Germany, the figure is as high as 405 days, while the UK holds the inglorious top spot with 499 days. What is behind these delays?
Regulatory requirements are becoming more complex, particularly due to ESG due diligence processes. Financing is taking longer because banks are acting more cautiously and raising capital is becoming more difficult. At the same time, price negotiations are tougher than ever before. Buyers and sellers are finding it difficult to reach an agreement and many deals are failing due to the discrepancy between supply and demand.
“Time kills deals”, is Timo Tschammler’s interim conclusion. Because the longer a deal takes, the greater the risk that market conditions will change and ultimately the whole deal will fall through. Interest rates fluctuate, opportunities disappear and financing conditions deteriorate. If you want to be successful in the long term, you not only need the right investments, but also the right processes.
ESG is a reality
While some see ESG as a trend or even a burden, in practice the opposite is true: sustainability requirements have long been an integral part of every transaction. Companies that do not play along in this respect are becoming less attractive to investors.
A look beyond Europe also shows that ESG criteria are relevant far beyond the EU. Even Japanese investors who invest in the Middle East, orientate themselves towards European standards. This shows that ESG is no longer just a European requirement, but an international benchmark.
However, the biggest challenge remains the lack of harmonisation: over 30 different energy efficiency classes within the EU make comparisons and investment decisions unnecessarily complicated. Anyone investing in several countries has to adapt to completely different requirements, which massively increases the effort involved. Without clear and harmonised standards, ESG compliance remains a time-consuming additional task for investors.
According to Christiane Conrads, ESG has long been more than just a regulatory obligation: “Sustainability is a business decision.” Companies that fulfil high standards secure more stable values in the long term and remain competitive.
If you lose the overview, you lose the deal
With increasing regulation and due diligence, the amount of data that needs to be managed for transactions is also growing. In 2024, the average property transaction will involve 3.6 gigabytes of documents – 20 per cent more than in the previous year.
However, many market participants continue to work with fragmented filing systems, confusing email chains and manual processes. This leads to errors that have a direct impact on the transaction process.
“If you lose control of your documents, you lose control of the deal,” says Alexandre Grellier. The solution lies not only in digitalisation, but also in the intelligent use of data. Automated processes, AI-supported document sorting and -analysis, as well as centralised, secure platforms ensure that all relevant information is available at all times.
Conclusion: speed, sustainability, digitalisation
Successful investors act faster, more efficiently and more sustainably. Long transaction times cost deals, ESG is a tough investment factor and without digital processes, the market environment is becoming increasingly unmanageable.
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