Addressing Privacy in the Age of Digital Real Estate
When I first began exploring virtual real estate technologies like digital twins and immersive 3D tours, I was amazed at how realistic and data-rich these environments could be. But as the industry raced ahead with innovation, one issue kept nagging at me—the question of privacy. The more detail we capture about our buildings, the more we reveal about the people and operations inside them.
This is a conversation that is long overdue in real estate tech circles. As we create these ultra-detailed digital environments, we are not just capturing spaces—we are collecting sensitive information that can expose tenant behavior, energy usage, security vulnerabilities, and even personal movement patterns. That kind of data is a goldmine for analytics—and a potential nightmare if mishandled.
The Hidden Cost of Transparency
Virtual real estate technologies thrive on detail. A Matterport tour, for example, can map every inch of a property in stunning 3D. Combine that with IoT data streams from sensors, and suddenly, the property’s digital twin knows exactly how many people occupy a floor at any given time, how energy is consumed, and when systems are used.
That level of insight is powerful—but it also exposes data that was once private. In one project I observed, a developer’s digital twin was so detailed that it inadvertently revealed security camera positions and tenant access patterns. The intent was efficiency; the outcome was vulnerability. Once data is centralized, it becomes an attractive target for breaches or misuse.
Data Ownership and Consent
The question of who owns the data generated by virtual real estate is still murky. Is it the property owner, the tenant, the platform provider, or the third-party analytics company that processes the data? In traditional real estate, the lines are clearer. In digital real estate, those lines blur fast.
I have spoken with property managers who discovered that their technology vendors were collecting and reusing data for “performance improvement.” In some cases, this included anonymized but still sensitive building usage patterns. Tenants, of course, were never explicitly informed. This is exactly the type of oversight that can create reputational risk—and eventually, regulatory scrutiny.
Legal and Ethical Frameworks are Catching Up
Regulators are beginning to notice. The EU’s GDPR and emerging privacy acts in the United States are expanding their definitions of personally identifiable data to include location and behavioral metrics. That means property technologies that track occupant activity may soon fall under stricter compliance requirements. Yet, many digital twin vendors have not updated their systems to align with these evolving laws.
Ethically, the conversation needs to move beyond compliance. Just because data collection is technically legal does not make it right. Real estate professionals have a duty to protect the privacy of those who live, work, and operate in the buildings they manage—both physically and virtually.
Privacy by Design: A Smarter Approach
The best digital twin projects I have seen take a “privacy by design” approach. They minimize unnecessary data collection, anonymize user information, and establish clear consent procedures for any form of monitoring. They also ensure that third-party platforms comply with recognized cybersecurity standards such as ISO 27001.
For property owners and managers, this mindset is not just ethical—it is strategic. A single privacy incident can erode trust faster than any other mistake. In contrast, transparency about what data is collected and how it is used can actually strengthen relationships with tenants and partners.
Balancing Insight and Privacy
There is no question that digital twins and immersive real estate technologies are the future. But we must balance innovation with responsibility. Every new virtual layer we build into the physical world introduces a corresponding layer of risk. Understanding that balance is not optional—it is essential.
The “virtual window” we create into our buildings must not become a window into private lives or proprietary operations. The more thoughtfully we manage this balance today, the stronger and more trusted the virtual real estate ecosystem will become tomorrow.
How is your organization addressing privacy and data protection in digital real estate projects? I would be very interested to hear what best practices you are developing as this new era of property technology continues to evolve.