The new balance of the real estate sector: Regulation, innovation and sustainability

The real estate market is operating in a landscape shaped by regulatory pressure, structural housing needs, technological innovation and strengthened sustainability requirements. In this context of change, we spoke with César Morales, Partner at Andersen and Director of the Advanced Legal Program in Real Estate Law at IE Law School, about the challenges and opportunities that will define the future of the sector.

The real estate sector is undergoing a period of transformation. What are the main legal challenges it will face in the coming years?

The need for housing is undoubtedly one of the greatest structural challenges facing the real estate sector in the years ahead and, as we are seeing, it is directly impacting the legal landscape. Recent regulatory changes have created a new framework that requires companies engaged in residential leasing to adapt legally. In some cases, this has generated a certain degree of legal uncertainty, which will likely lead to increased litigation within the sector.

Another key legal challenge is the conversion of commercial properties into residential use—given the urban planning and land registry complexities involved—as well as the development of new housing solutions, such as coliving and senior living. These are some of the structural challenges we analyse in depth from the outset in the Advanced Legal Program in Real Estate Law at IE Law School. 

Which market segments show the greatest growth potential?

We currently see the strongest potential in segments linked to housing solutions, particularly the conversion of commercial buildings into residential use, build-to-rent, senior living and student residences.

In addition, logistics and data centers offer significant opportunities, provided that existing challenges related to electricity availability can be resolved.

What role does technological innovation play in the future of the sector?

It is key. For years, we have believed that part of the solution to the housing challenge may lie in advances in industrialised construction, which reduce costs, shorten execution times and improve sustainability and energy efficiency.

At the same time, we are seeing how blockchain technology is beginning to have real applications in the real estate sector. One example is the creation of Arca Habitatum Capital, the first Spanish real estate company with tokenised shares. This case is analysed within the Program as a practical example of blockchain technology applied to the real estate sector.

In this area, Andersen has a team of professionals—some of whom also teach on the Program—who are focusing their work on these areas of innovation.

What do you believe will be the next major step in the evolution of ESG in the real estate sector?

The next phase is the transition from voluntary compliance to full enforceability, with consequences in the event of non-compliance. We have been seeing the inclusion of green or sustainability clauses in lease agreements for several years, but the next step will be the potential sanctioning of tenants in cases of breach.

Likewise, the time will come—if it has not already—when green loans will no longer be considered innovative, and an energy rating below E will result in higher mortgage costs or even loan refusal. Furthermore, as proposed under European regulation, from 2030 onwards, residential properties will need to have an energy rating above E in order to be sold or leased. 

In this context, what does the Advanced Legal Program in Real Estate Law at IE Law School offer?

The Advanced Legal Program in Real Estate Law at IE Law School provides a comprehensive, practical and applied approach to real estate law, delivered by professionals who are actively involved in some of the most significant market transactions, including both lawyers and senior executives from leading companies in the sector. 

The program is sponsored by Andersen, a firm with a global outlook that has established itself as a leading reference in the Iberian Peninsula, driven by its strong commitment to specialization, innovation, and high-value advisory services. It offers a solid understanding of the current regulatory framework—urban planning, leases, condominium law, financing and taxation—while also enabling participants to understand the trends that are transforming the sector, not only from a legal perspective but also from a business standpoint.