Jan 7, 2025
What you should know about the AI Act to lead the industry.
In this newsletter, you will be informed about the latest trends and news in Real Estate industry, our member space updates, and upcoming events. Sit comfy, and let’s go through:
What you should know about the AI Act to lead the industry.
Events: Free webinar on Europe’s Most Innovative Trends in Real Estate 2025, and conference on AI in construction.
Members’ spotlight: LIME Law’s proptech series, Shayp, HYPERLAPSE, KPD.
Featured news: Millennials and GenZ represent 60% of new homebuyers by 2030.
All you need to know about the EU AI Act
The European Union’s AI Act is set to reshape industries, including the real estate sector, by establishing clear guidelines for the ethical and responsible use of artificial intelligence.
As the Act is on track to come into full effect by 2026, now is the critical time for real estate developers and PropTech startups to understand its implications, prepare for compliance, and position themselves to innovate responsibly within this evolving regulatory landscape.
If you want to dive deeper into the legalities of AI under the AI Act, LIME Law, a member of PropTech Lab, has published an in-depth article on this topic.
Understanding the AI Act's Impact on Real Estate
The AI Act categorizes AI systems based on risk levels:
Prohibited AI Practices: Certain AI applications are banned due to unacceptable risks, such as those violating fundamental rights.
AI predicting socioeconomic status for housing access
2. High-Risk AI Systems: Applications that significantly impact health, safety, or fundamental rights fall into this category and are subject to stringent requirements.
Tenant Screening Tools: AI systems that evaluate tenant applications using personal data (e.g., credit scores, social media activity) to determine rental eligibility.
Automated Property Valuation Models: AI-powered tools that assess a property's market value for loan approvals.
Smart Building Management Systems: AI that autonomously adjusts building systems (e.g., fire safety alarms, air quality controls).
3. Limited Risk AI Systems: These applications are less likely to impact rights or safety but still require adherence to basic transparency and accountability standards.
AI-Powered Chatbots for Customer Service: Virtual assistants that answer property inquiries or schedule viewings. They must disclose that users are interacting with AI and ensure data privacy.
Energy Usage Optimization: AI systems that suggest energy-saving tips for tenants or building managers but do not autonomously control energy systems.
4. Minimal Risk AI Systems: These systems pose negligible risks and are largely exempt from regulation, although transparency remains encouraged.
Property Listing Recommendation Engines: AI that analyzes user preferences to recommend real estate listings.
Market Trend Analysis Tools: AI analyzing large datasets to predict trends in property prices or rental demand.
AI, if used effectively, can accelerate the sustainable digitalization of the real estate industry. To achieve this, businesses should take practical steps to ensure legal compliance while harnessing AI's advantages:
Conduct a Comprehensive AI Inventory: Identify all AI systems in use and classify them according to the AI Act's risk categories.
Develop a Compliance Strategy: Create a roadmap addressing legal, technical, and ethical aspects of AI use. This includes implementing risk management systems, ensuring data governance, and establishing human oversight mechanisms.
Engage in Regulatory Sandboxes: Utilize opportunities provided by the AI Act to test innovative AI solutions in a controlled environment, facilitating compliance while fostering innovation.
Invest in Training and Awareness: Educate your team about AI ethics, compliance requirements, and the implications of the AI Act to ensure organization-wide adherence and informed decision-making.
Collaborate with Legal and Technical Experts: Work with professionals specializing in AI compliance to navigate the regulatory landscape effectively and implement best practices.
By preparing for the AI Act now, you’re not just ensuring compliance—you’re building trust and unlocking new opportunities to innovate responsibly. Embracing these changes now will pave the way for sustainable growth in an increasingly AI-driven industry.
Nominate Now for the Global ESG Awards 2025
The Global ESG Awards for construction & real estate, with RICS is the main sponsor, are organized together with MIPIM. This prestigious event recognizes outstanding achievements in environmental, social, and governance (ESG) practices.
Nominate a company or individual you believe deserves one of the six awards during MIPIM in Cannes by visiting: https://www.globalesgawards.com/programs/esgawards2025
Nominations close on 31 January 2025, so don’t miss the chance to shine a spotlight on ESG excellence. All categories are:
- Compliancy - For the best solutions that comply with regulations
- EcoBalance - For the best solutions for climate change & pollution
- Aqua Biodiversity - For the best solutions for water and marine resources, biodiversity and ecosystems
- Resource Excellence - For the best solutions for resource use and circular economy
- CommuniCare Impact - For the best solutions for affected communities, consumers and end users
- ESG Leadership - The best corporate ESG personality (only for corporate construction & real estate professionals)
Mark Your Calendar
Europe’s Most Innovative Trends in Real Estate
Kickstart your year with a clear, actionable roadmap to drive strategic growth and outpace the competition.
Feel free to refer people you know (who are non-member) that might be interested in this masterclass!
09/01/2025, 12pm
Online
From JUUNOO: Circular Value & AI - exclusive event for decision makers in construction
How can we make the construction sector more sustainable, smarter, and future-proof? Join us at our exclusive event, “Circular Value & AI in the Construction Sector,” where we delve into the future of circular economy and artificial intelligence in the industry.
11 February 2025 – 5pm
Wintercircus Gent
This event brings together leading speakers and professionals to share insights on how circularity and technology are transforming construction:
Brigitte Mouligneau (OVAM): The current state of the circular economy in Europe
Chris Van De Voorde (JUUNOO): The circular value of construction materials
Frederik Leus & Geert Bettens (ArcelorMittal): What happens when steel runs out?
Lieven Scheire: The role of AI in the construction sector
This is your opportunity to learn from experts, exchange experiences, and build valuable connections with fellow decision-makers in the sector.
Members’ Spotlight
KPD strengthens leadership position in construction software with acquisition of legal tech startup Publican BE
HYPERLAPSE Construction Videos & Reality Capture ’s featured on Magazine Imobiliário and Diário Imobiliário
Shayp is featured on the Belgium Impact Startup Awards Billboard!
LIME Law ’s Latest Thinking series to discuss legal topics in Real Estate
Must-Read News
Millennials, Gen Z to Represent 60% of New Homebuyers by 2030
Fractional Real Estate: A $100 Entry Point for Gen Z Investors