Artificial intelligence (AI) is set to become increasingly important in real estate’s transactions business, offering "a beacon of hope" as deal timelines hit record highs in the UK, according to due diligence platform Drooms.

In its fourth annual Real Estate Trends report, Drooms said AI can help investors process more deals with the same teams despite ongoing financing and regulatory pressures.

For the first time since Drooms’ survey began, average European transaction duration held steady year on year at 363 days. However, 53% of the 80 real estate professionals Drooms surveyed said deal timelines had lengthened over the past 12 months and nearly a quarter reported reduced deal certainty following due diligence.

In the UK, transaction times hit a new high of 577 days in 2025, up from 499 days the previous year, reflecting extended negotiations and buyer caution amid macroeconomic uncertainty.

Against this backdrop of complexity, Drooms said AI was becoming a “beacon of hope”. In the survey, 49% of respondents expect AI to enable them to review and prepare more transactions with the same number of staff.

Meanwhile, a further 15% of respondents believe AI can make transactions faster and more cost-effective, for example by reducing consulting and review costs.

However, 12% expect job losses as a result of increasing automation. Drooms said “the picture is mixed: AI is currently seen as a supporting tool, not as a fully automated replacement for human decision-making”.

The use of AI focuses primarily on analysing large amounts of data, structuring documents and preparing due diligence processes.

Some due diligence platforms already make it possible to integrate such AI functions directly into existing transaction processes.

Alexandre Grellier, co-founder and chief executive of Drooms, said: “AI has the potential to make the transaction market fairer. While large deals today require appropriate structures and manpower, in the future smaller boutiques will be able to compete with large investment managers and investors.