Portugal: Blending Modernity And Tradition: Proptech In The Rehabilitation Of Portugal's Cities

Last Updated: 1 August 2019
Article by Luís Filipe Carvalho and Filipa Arrobas Da Silva

It has been a while since technology ceased to be simply an auxiliary tool designed for specific individual tasks and became an essential element of our day-to-day personal and professional activities. In a short space of time, the union between technology and traditional sectors has transformed the way we communicate in a constantly evolving marketplace, and the real estate sector is no exception. Proptech (property technology or real estate technology) has emerged through a combination of real estate infrastructure, market habits, transactions and technological development.

The term proptech refers to adding a technological component to a business model, resulting in technologically innovative products and new business approaches to the real estate market. This innovation represents the transformation of the industry, and it is predicted that the technological changes will influence consumer mentality, the operation of construction activities and real estate transactions, creating cities of the future. Specialized companies are and will continue to revolutionize the real estate market, making it more digital, in constant growth and with new consumption standards.

All over the world a wide variety of companies are using big data technology to process information; from real estate management platforms to real estate investment companies. The use of proptech gives a competitive advantage to adopters due to its ability to add innovation to every stage of the business process and by rethinking existing systems. Proptech is often designed to streamline and connect processes for participants in all stages of a real estate transaction, including purchasers, sellers, real estate agents, brokers, investors, lenders and landlords. Examples of some of the most common proptech technologies include: virtual reality software that allows website visitors to virtually walk through properties; software for reporting repairs or for splitting rent payments; and platforms for crowdfunding new real estate projects.

The arrival of proptech will shape tomorrow's real estate industry. Below are some of the innovations that proptech brings to the real estate market:

  • Artificial intelligence - the use of AI allows, for example, language processing and image recognition for the purposes of scanning purchase and sale documents and importing data into a customer relationship management (CRM) system. It can also help to automate communication between an agent and potential buyers; sending the right message to the right buyer at the right time is essential in creating a productive relationship. Through validation of data, communication automation and workflow within a CRM system, AI frees up agents to dedicate themselves to their clients. It does not end there; multiple home and office appliances and amenities can be automated and managed using AI, a trend that is gaining significant ground in construction and architectural trends.
  • Blockchain is probably the technology that has had the greatest impact in the real estate industry, with near limitless potential to revolutionize the way transactions are conducted. Blockchain technology adds transparency to real estate transactions through a simpler and less regulated system.
  • Big data allows participants to identify desires, trends, needs and even the interests of users, offering a more personalized experience. Corporations use this technology to make better decisions and strategic moves, adapting their approach to the consumer.
  • Geolocation allows users to better analyze locations and explore assets in more detail by offering building data, sales values, and points of interest with some of its features.
  • Drones for panoramic photography and virtual reality are one of the main tools for developers and real estate platforms. Augmented reality technology allows buyers to have a close-to-real experience, as if they were virtually transported to the property, in person, even before it is built.

The use of applications based on proptech innovations should, however, be flexible enough to allow local players to adapt them to the specific needs and circumstances of each local real estate market. In the specific case of Portugal, historical city centers are aging and require rehabilitation and urban intervention. There is a significant lack in the supply of modern, sophisticated products able to satisfy the ever-growing needs of the local population, of corporations and of the booming tourism industry.

This is a critical issue that must be addressed if Portugal is to remain competitive in attracting both internal and external investment to its real estate sector.

Considering the difficulty in creating real estate product due to, on the one hand, the scarcity of available land in city centers and, on the other hand, the multiplicity of state regulations over the use of land and new construction, the rehabilitation of historical areas has become a crucial strategy for Portugal. This requires market players to have a strong sense of local tradition and of the natural character of a given city, mainly from architects, engineers, investors and, in general, real estate consultants. The big issue is how to conciliate these two dimensions; the need for implementation of proptech solutions in order to create a supply of modern real estate product and the preservation of the historical architectural and functional traces of these urban environments. All market players must make the effort to enhance local economic activity, while ensuring it does not destroy the historical tradition and legacy of each city.

Market players need to understand that this effort will not only promote a good relationship between new residents, tourists and corporations with the local population, but also protect their own investment on a long-term basis, avoiding conflict with local "anti-bodies," either of a social, economic or political nature. Using proptech to serve people, by increasing real estate efficiency, cost reduction, conservation status, maintenance standards, environmental quality, residential amenities and tourist needs, while respecting each city's history and typical day-to-day life, is an important step towards creating a well-balanced market.

All this can only be achieved by introducing technological solutions, and providing autonomous management capabilities to each property. This would also be necessary for new forms of real estate, such as co-working, co-living, short-term, senior living and new hotel concepts.

In countries like Portugal, where the old cities require rehabilitation, introducing this technology is more demanding and will play an even more relevant role. It is not only a management decision; it is a strategic decision for the future and for the competitiveness of cities. Proptech is no longer a speculative investment it is a smart one.

The future of successful cities and harmonious societies lies in blending modernity and tradition with the help of proptech and its responsible application.

"Proptech is no longer a speculative investment; it is a smart one."

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions