By Arpit Bansal
What was once called a futuristic notion has now become a defining standard in urban living- smart homes are no longer aspirational. Instead, they are envisioned. While Indian real estate continues to witness a technology-led transformation, homebuyers are rapidly gravitating toward homes that blend lifestyle conveniences with digital intelligence. But beyond sleek gadgets and automated systems, a deeper shift is emerging: buyers are treating smart homes as strategic investments, not just lifestyle choices.
This new shift in residential demand is being driven by a desire for homes that offer more than aesthetics—homes that enhance daily living, reduce long-term costs, support sustainability goals, and retain higher market value. With developers integrating artificial intelligence (AI) features from the ground up and tech firms pushing the boundaries of automation — smart homes are now at the verge of innovation and investment logic.
Key Factors Behind the Smart Home Surge
The rise of smart homes in India is being fuelled by several key factors. Rising affordable incomes among middle-class families have opened new pathways to tech-integrated living. Moreover, many young professionals have gained the financial means to explore homes that not just offer comfort, but also efficiency as well as a modern living experience. A CBRE India survey also revealed that 72 per cent of luxury homebuyers prefer residences with smart home systems that enable remote management of utilities. This upward mobility is aligning with a greater demand for homes that reflect their digital-first lifestyles.
Meanwhile, urbanisation is also accelerating at an extraordinary pace. It is urging more families to migrate into cities while creating a natural demand for homes that can simplify hectic urban lives. In addition, rapid advances in affordable technology are making home automation more accessible. AI, automation tools and IoT devices are no longer premium innovations. Rather, they have now become the standard expectations. Following this, the Indian home automation market size is projected to reach $13.64 billion by 2033.
Furthermore, the growing consciousness around sustainability is also shaping homebuyer choices. In recent times, smart homes are being designed to use fewer resources, reduce energy consumption plus support greener living. Automated lighting, smart meters, and energy-efficient appliances are helping build a future where environmental responsibility is part of everyday life.
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Features That Add Tangible Value
The utility of smart homes lies not just in their futuristic features. But it rather lies in how those features contribute to day-to-day ease and long-term value. Automation systems now manage lighting, temperature, ventilation and even entertainment systems. All of these are made accessible via smartphones or voice commands.
Security also remains as one of the critical value additions. With the integration of smart locks, facial recognition systems and AI-enabled surveillance cameras, real-time monitoring and alerts are offered. This, in turn, helps residents to feel secure whether at home or away. These features are peculiarly appealing to families and absentee homeowners like non-resident Indians (NRIs).
Additionally, remote control of appliances as well as systems contributes to the flexibility. Whether it’s switching on an air conditioner before arriving home or managing tasks by using virtual assistants, smart homes redefine convenience.
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A Profitable Bet for Investors
The ability of smart homes to produce superior returns is what renders them particularly appealing. The market value of properties with built-in automation increases as the demand for intelligent living rises. Buyers nowadays are willing to pay a premium for modern conveniences. Also, renters are increasingly looking for smart-equipped spaces that enhance their daily life.
In key urban and emerging Tier-2 markets, smart homes are also delivering stronger rental yields. Investors looking to monetise their properties find that automated systems help to reduce maintenance hassles while increasing appeal. This is particularly beneficial to NRI and HNI investors, who see these homes as a way to combine lifestyle with capital appreciation.
On the whole, the smart home movement in India is no longer confined to luxury segments. It is altering the real estate industry with widespread integration of modern innovations and sustainable design. In a market where expectations are evolving rapidly, smart homes have emerged as the ultimate blend of innovation, convenience, and investment viability. For the contemporary homebuyer, choosing a smart home is not a mere lifestyle upgrade. In lieu, it is a decision that makes sense on every financial and functional front.
(The author is Director and CEO, La Wisteria)
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