Overview
Technology has an increasing relevant role in Real Estate, including on the way real estate developers, investors, agents, brokers and managers operate in the market, as well as on customer behaviour. Artificial Intelligence, virtual and augmented reality and Big Data play an increasingly relevant role in real estate services, whilst technologies such as 3D printing and automation, as well and AI, VR and AR, are becoming more used in construction.
Trends
Major trends in the sector include the use of AI (for the purpose of predicting property market value, as well as in AI-enabled consumer apps, machine-learning interfaces and chatbots), virtual and augmented reality (the use of virtual reality technology to view homes and commercial real estate assets allows for spatial visualization without an on-site visit), and Big Data (powerful analytical tools allow real estate players to make more data-driven investment and management decisions).
Technology is also increasingly used in planning and construction, such as in the intelligent use of scarce resources (such as water use timing) or in the incorporation of renewable energy resources and environmentally conscious features in buildings, such as rooftop solar panels, LED lighting and improved insulation. Technology is also increasingly relevant for enhanced planning and for management of green spaces surrounding buildings. In addition, 3D printing and automation, as well and AI, VR and AR, are becoming ever more used in construction.
From a user’s viewpoint, smart homes and digital housing business intelligence are becoming interesting and useful features, with added comfort, security and property value arising from the inclusion of recognition technologies (such as fingerprint recognition, facial recognition, retina scanning, and/or other biometric identifiers), and smart controls (with the implementation of sensors connected to IoT platforms) that ultimately contribute to the enhanced safety of residents as well as the quality of the buyer’s experience.
In addition, new business models have developed, including notably space-as-a-service, where space is provided by demand. This is a paradigm shift in the way in which the commercial real estate industry has provided products and services to tenants and has changed the role of commercial landlords from rent collectors to service providers.
Legal Challenges
New legal and regulatory challenges arise from the increasing digitalisation, automation and connectivity:
The use of technology in development and construction (e.g., increased use of automation and robots in construction, digitized processes, remote monitoring and supervision, risk assessment and modelling) brings new challenges that require legal and regulatory support, including when it comes to data, cybersecurity, insurance and liability issues, as well as in the light of environmental concerns.
Marketing and sales processes resorting to new technologies such as AI, VR and AR, as well as DLT/Blockchain, are becoming more widespread, whilst the offer of personalized services and the execution of contracts requires access to and collection of Big Data such as in KYC processes, which raises legal and regulatory challenges.
Increased demand for smart housing and smart offices that respect the environment is impacting the real estate sector, leading to the implementation of technological improvements such as using AI and robotics, all of which require regulatory clarity.
The real estate industry is seen to be one of the most conservative when it comes to applying innovative technological solutions in practice. This requires innovative and friendly digital strategies and contractual models for both providers of technological services, as well as for contracts with developers, contactors, manufacturers, agents, brokers, buyers and/or tenants.
- Regulatory, Standards & Compliance
- Technology integration and updates
- Data (personal and non-personal) & Cybersecurity
- IP & Trade Secrets
- Liability & Insurance
- Procurement / public-private synergies
- Testing of new technologies
Step-by-step
What?
Forces driving the market
Development of technologically innovative products in the real estate market and smart homes and offices, through the use of AI, blockchain, VR and AR, mobile applications, 3D printing, recognition technology, smart controls and automation.
Use of Big Data aggregation and management tools, as well as of cloud technology, to streamline and centralise extensive data, which is relevant for planning, construction, marketing and sales.
Development of innovative solutions through the use of IoT and AI to produce key savings and environmental improvements.
How?
Can we help you
VdA has vast experience and strong expertise in all policy, legal and regulatory matters associated with PropTech. Our tech and industry insights allow us to provide 360.º legal services to organisations, governments, and regulators.
- Real estate companies and agents
- Property developers
- Investors
- Technology developers and providers
- Real estate agents
- Insurers
- Municipalities and Government organisations
Our team of experts is delivering strategic and sophisticated legal advice to help our clients on their most challenging and promising projects. With a track-record of advising complex projects for leading companies in the sector, as well as for the public sector.
VdA services include:
- Advising on regulatory and compliance issues for developing, testing and deploying technologies in the Real Estate sector, including PropTech applications and services
- Advising on data (personal and non-personal), cybersecurity, insurance and liability issues, as well as on IP protection, technology partnerships and transfers
- Drafting and negotiating contracts for sale and purchase, development, provision of services, including terms of service and privacy policies for digital solutions
- Advising in the implementation of new technological tools (such as AI and blockchain), including negotiating licensing agreements
- Advising on public contracts: administrative contracts, public tenders, pre-contractual proceedings
Our team of experts
The disruption in the Real Estate ecosystem through Technology raises complex challenges that require a holistic and sophisticated legal analysis.
We help our clients meet their goals through a cross-sector team that brings lawyers from our ICT, Real Estate and Data & Cybersecurity Practice Areas. In addition, to deal with the complex challenges brought by the resort to technologies in the sector, our team further works routinely with our colleagues from IP, Corporate Finance, Environment and Tax, among others.
Why?
Specialised knowledge is required
The opportunities and challenges of the Real Estate sector, including those arising from the deployment of emerging technologies and the lack of regulatory certainty, are complex.
Therefore, specialised knowledge is required in the development and deployment of digitalization strategies.
When?
Can we do it for you
Assisting you in devising the best approach and models for your business, project, product and service, in the light of legal and regulatory opportunities and constraints.
Assisting you in the development and setting-up of your business, project, product and service, drafting all required documentation, assisting in the negotiation of contracts, interacting with competent authorities, and accompanying you in every step of the way.
Assisting you in addressing day-to-day business goals and challenges in the light of the applicable laws and regulations. We are here for you.