In fact, there were two parts of night journey.

First part was from Mecca to Jerusalem ( Al Aqsa mosque). At the mosque, Prophet Muhammad(PBUH) is said to have led the other prophets in prayer. Second part was from mosque to space( To Allah and Heaven). In nutshell, there was supposed to be part of that night instead of whole night.

Indeed, time runs taster to one on earth.

Quran. 22.47 compares time of Earth with time at Paradise/Hell (1 day vs 1000 years); while Quran 70.4 compares time on Earth with time in wormholes (1 day vs 50,000 years).
The Quran says that when angels travel they experience different time than ours:
(Quran 70.4). The angels and the Spirit ascend to Him in a day, the measure of which is fifty thousand years.

Likewise scientifically proved that General Relativity says that the closer you are to a heavy mass, such as Earth, the slower time will move for you. This means that a clock on a satellite orbiting the Earth will run faster relative to one on the ground.