Smart Homes – IoT in Real Estate Leading the Future

Sudeep Srivastava June 12, 2024
Iot in real estate

The real estate world is undergoing a dramatic revolution in an age when no precedents for technological progress can be witnessed without IoT-based applications. According to the latest reports, the smart home market across the world, valued at $80.21 billion in 2022, will rise to $338.28 billion by 2030. This phenomenal expansion indicates a major change in the industry, where IoT in real estate is at the forefront of transforming the expectations for contemporary lives and real estate management.

IoT-powered smart homes have been a major aspect of future home development, where innovative solutions are merging with the ever-changing landscape, assuring convenience, efficiency, and security for both owners and property managers. So, let’s explore in this article how IoT for real estate is transforming modern living and offering more convenience.

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Understanding the Statistics of IoT for Real Estate

The Internet of Things works as a system of interlinked intelligent devices that communicate via the Internet, thereby ensuring effective information exchange. These devices embedded in everyday objects, such as television sets, washing machines, curtains, and cars, can be programmed to do a multitude of tasks, from initiating the coffee roasting process in the morning to switching off the heating system while you are working away.

The real estate IoT trends are growing. Today, we count over 15 billion IoT devices installed everywhere, and this number is fast growing to 29 billion, according to Statista.

Projected number of IoT connected devices worldwide from 2019 to 2030

Fortune Business Insights forecasts an impressive 26% annual growth in the global IoT market, predicting it to touch approximately $2.5 trillion by 2029. IoT significantly affects the real estate sector as it makes mundane operations simpler and raises productivity. By 2023, consumers will spend $157 billion on IoT-based smart home systems since they make tasks more efficient, reduce cost, and diminish the probability of human error.

According to Gartner, the implementation of IoT for real estate can reduce energy costs, spatial management expenses, and building maintenance outlays by up to 30%. Significantly, Deloitte Research states that 52% of commercial real estate companies acknowledge IoT and artificial intelligence play an integral role in shaping tenants’ preferences.

Unsurprisingly, the integration of IoT for real estate changes the way property search and purchase happen from the first step to the signing of a contract. The use of sensors and smart devices in residential and commercial buildings allows for automated energy consumption, security protocols, entertainment systems, and lighting solutions through IoT.

In addition, savvy commercial real estate agencies are devising smart solutions that allow consumers to control several systems across their homes, in the office, or where they choose to conduct business, promoting a smarter and more connected lifestyle.

Also Read: How To Make Your IoT Project Successful?

Business Benefits of IoT in Real Estate

IoT is revolutionizing the industry by focusing on affordability, safety, and sustainability aspects. Check out the benefits of IoT in real estate below:

Advantages of Leveraging IoT in Real Estate

Cost Efficiency and Affordable Housing Solutions

According to CNBC, the US has more than 5 million shortage in affordable housing, and thus, there is a call for such houses. With IoT applications in real estate, real estate companies will be able to reduce their utility costs by using IoT-based customized energy management systems. In this way, these companies are able to provide affordable housing for more people by giving cheaper pricing in comparison to other firms. Apart from solving the housing crisis, it also serves the current need for affordable and eco-friendly housing.

Enhanced Incident Management and Safety

The adoption of smart home technologies supported by IoT enables a move from reactive to proactive incident management. With the help of sensors, IoT devices can identify such dangers as fires, leaks, and even break-ins quickly. Early detection results in a quick response and reduction of property damage with consideration of occupant safety. IoT-enabled safety measures can be adopted by real estate stakeholders into their property management with the assurance that the safety of life is the topmost priority in smart real estate technology.

Environmental Sustainability and Eco-Friendly Practices

There is an interrelation between IoT adoption and environmental conscience. The use of IoT in real estate also makes a meaningful contribution to sustainable practices since, currently, most buyers tend to be green-oriented. Property management driven by IoT helps save energy and water, thus consuming fewer resources. This promotes the environmental sustainability of buildings and attracts the ever-increasing need for green homes by environmentally concerned buyers.

Innovative Real Estate Applications and Virtual Home Hunting

Integrating IoT into smart property applications allows real estate agencies to provide advanced solutions such as virtual customer visits and online property exploration. Real estate businesses can offer immersive experiences to future buyers by using IoT tech. These IoT applications in real estate increase customer engagement as well as enable real estate firms to understand the needs of their target market by assessing customers’ preferences and behaviors.

Customer Engagement and Digital Transformation

Through the concept of IoT for real estate, businesses can now engage with customers through customized and immersive­ services. By incorporating solutions like virtual tours and inte­ractive messaging, real e­state firms can effectively meet the e­merging demands of their customers, build strong customer relations, and boost sales.

Weather-Related Risk Mitigation and Resilience

IoT technology has re­volutionized weather monitoring with its advance­d sensors. These se­nsors offer real-time tracking and prompt warnings during unfavorable­ weather conditions. By leve­raging this technology, real estate­ managers can effectively anticipate and mitigate weathe­r-related risks, enhancing the resilience of their buildings against natural disasters like hurricanes, thunde­rstorms, tornadoes, and floods. Taking a proactive approach to risk management not only safeguards properties but also ensures the safety and well-being of tenants, resulting in more secure and robust real e­state environments.

Optimized Resource Consumption

Through IoT-enabled smart meters and automated management systems, one can make huge savings in terms of energy consumption. Real estate companies can efficiently manage resources like electricity and water by using IoT technology to monitor and control them. Besides, such kinds of savings lead to cost cuts and energy efficiency in sustainable development and careful employment of resources in real estate.

You may like reading: Demystifying IIOT – 10 Applications and Use Cases across Industries

IoT Use Cases for Real Estate

Let’s explore IoT use cases for real estate, how these connecte­d devices are utilize­d in the real estate­ industry, and understand the various bene­fits they provide.

Use Cases of IoT in Real Estate

Improved Efficiency with IoT-based HVAC

Smart sensors utilized in the IoT-enabled HVAC system will adjust the indoor temperature, humidity, and air circulation for optimal efficiency. These systems are connected to central databases and weather forecasts to automatically adjust the settings for minimized energy costs. For example, smart sensors that detect occupancy and adjust HVAC settings, as well as smart lighting and water heating, further reduce energy usage and enhance comfort.

Predictive Analytics and Preventive Maintenance

The IoT-based data analytics will help in the real-time monitoring of critical building equipment and predict potential problems to avert major issues. Property managers can install sensors at strategic locations to get instant messages in case of leaks or anything else that may cause significant repair costs when ignored. In addition, using IoT for the predictive maintenance of equipment also makes operations safer and more efficient and fits the principles of cost-effective property management.

Better House-Hunting Experience with Beacon Technology

By introducing beacon technology into real estate marketing, property seekers can access a lot of information concerning different properties in the form of photos, virtual tours, and various promotional offers. This way, a home search practice gets improved for the property buyer. Specially positioned beacons send property details to prospective buyers’ mobile phones for a personalized experience and an interaction for viewing. The technology simplifies the process of looking for a home and, in turn, allows for specialized services and productive communication with the client.

Smart Decision-Making with IoT-Enabled Apps

Real estate agents can now use data-driven property analytics provided by IoT-based software platforms to make informed decisions that result in seamless property transactions. These sites provide comprehensive property appraisals, enabling stakeholders to make informed judgments about property values and market tendencies. The use of IoT in real estate in generating insights enables agents to enhance the processes involved in property evaluation and reduce the need for on-site inspection, which helps to improve the decision-making process for potential buyers, hence boosting customer service and sales.

Optimized Space Utilization of Property

Sensors and data analytics provide accurate information about space usage that can optimize space management and save costs in commercial properties. Property managers utilize data from different sensors, including desk sensors and people-counting sensors, in identifying underutilized areas and making proper space allocation.

In addition, during unusual events such as the COVID-19 pandemic, IoT-driven workforce optimization promotes adherence to occupancy regulations and encourages a healthier working space within the constrained environment of workplaces.

Smart Home Technologies for Enhanced Security

Smart home technologies linked with IoT in real estate apps provide higher security of properties and convenient access management when owners are away. Through smart locks, cameras, and motion detectors, they can monitor and operate security settings for the sake of the property’s safety and the well-being of the residents.

Moreover, high-end home automation, like remote system controls and utilities, gives a more convenient and personalized lifestyle that can draw in many recent tenants looking for more comfort and security in the house.

You may like reading: How to Ensure Cybersecurity in the Age of IoT

Elimination of Bottlenecks through IoT Integration

Smart traffic management solutions in real estate projects involve IoT integration, allowing efficient property operations and better customer experience. The use of IoT-enabled technologies would help real estate developers recognize and manage the potential traffic congestion and also enable proper visitor flow as well as effective building management.

The use of these solutions enhances operational efficiency and makes the property attractive to tenants and visitors alike.

Improved Well-Being of Building Users with IoT Monitoring

The use of IoT-based sensors and automated monitoring systems can improve occupants’ health by providing better conditions and quick maintenance. The sensors connected to IoT control room temperature, light, and sanitary measures for good living or job conditions. This smart tech in real estate is like preventive systems that reduce tenant complaints, thus satisfying them and increasing the property’s value as a whole.

Embrace IoT integration in your real estate property management

Real-World Examples of IoT in Real Estate

The real estate sector has experienced a significant shift towards compre­hensive smart home inte­gration and sustainable building management. Here are the key examples of IoT in real estate.

Real-World Examples of IoT in Real Estate

Samsung SmartThings Station

The newly launched Samsung SmartThings Station in 2023 offers a simple and cost-effective way to manage different smart home products. This innovative hub is equipped with rapid charging capabilities coupled with SmartThings Find, which makes it easy for users to trace lost devices in their homes.

Eve Systems Matter-Compatible Accessories

The Eve­ system provides a diverse range of smart home accessorie­s. These include the Eve Motion, Energy smart plug, Eve­ Window sensors, and Door. All of these acce­ssories are compatible with Matte­r technology. They seamle­ssly integrate with popular smart home platforms like Amazon Alexa, Apple HomeKit, Samsung SmartThings, and Google­ Home, ensuring a wide range of connectivity and improved functionality for users with different needs.

Shelly’s Advanced Smart Home Automation Devices

Shelly’s eight smart Home automation devices launched at the CES trade show 2023 showcase the determination of the company to design new products with features that can serve professionals and hobbyists at home. The Shelly Plus/ Pro has intelligent qualities as it helps upgrade the Smart Home concept by involving it in IoT for a complete home automation experience.

Amazon’s Upgraded Smart Speaker Lineup

In 2022, Amazon introduced the Echo Auto, Echo Dot with Clock, and Echo Studio. These new smart speake­rs showcase Amazon’s dedication to improving audio architecture­ and expanding smart speaker capabilities. With enhanced audio clarity and compact designs specifically de­signed for in-car usage, these smart speakers highlight the inte­gration of IoT into our living spaces and the transformative power they have in enhancing audio e­ntertainment experiences.

ABB India’s Smart Switch Line

The smart home­ automation system integrates se­amlessly into residential and comme­rcial spaces, including offices. ABB India presented the Zenit and Millenium switches, which obtained ISI certification in August 2021. These switche­s are not only functional but also energy e­fficient. They facilitate the transition from conventional lighting into eco-friendly smart solutions, supporting the Internet of Things for sustainable and technologically advanced building management.

Honeywell’s Remote Thermostat Control

The collaboration between Latch and Honeywell in 2020 is evidence of IoT integration in the provision of a contemporary user-building experience. The innovative solutions by Honeywell give residents and managers comprehensive energy managing capabilities to control the thermostats for optimum energy usage and maximum comfort within the building. It demonstrates a real-world implementation of the Internet of Things in property management and efficiency gains.

Schneider Electric’s Easy Homes IoT Integration

The integration of IoT-enabled features is demonstrated in the launch of Easy Homes from Schneider Electric in December 2019, which allows users to control power and home appliances remotely using a mobile app. Easy Homes is a good example of IoT in real estate that transforms conventional switches and appliances into connected devices, making our homes smarter and more efficient. It signifies the growing trend for the use of smart home technology in real estate properties.

Also read: Building a Smart Home Automation App: Opportunities, Challenges, Process, Costs

Future of IoT in Real Estate

The widespread adoption of IoT technology in the real estate industry is gradually changing the user experience and boosting efficiency. About 75% of commercial real estate firms have acknowledged how IoT can improve tenant satisfaction and, thereby, the need to adopt emerging technologies to upgrade the renting experience. Global adoption of IoT technology in the real estate sector is expected to rise as the market value is anticipated to increase at a rate of more than 26% and reach $2.5 trillion by the end of 2029.

On the other hand, 73% of real-estate executives consider that the IoT will greatly assist the industry as a whole. The real estate landscape is set to be dominated by smart building management systems as they combine with data-driven insights and personalized tenant services.

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Smarten Your Real Estate Property with Appinventiv

The combination of smart home technology and the IoT in the real estate sector will transform how properties are handled, optimizing operational efficiencies while promoting a higher standard of living. The next generation of real estate will be driven by seamless automation, energy efficiency, and data analytics. The IoT integration in smart home solutions, such as energy efficiency, water conservation, and environmental sustainability, will help the industry move forward and develop more intelligent, liveable spaces for homes and offices.

Consider partnering with Appinventiv for real estate app development solutions for modern IoT technology and smart home integration. Reach out to Appinventiv today as you progress towards a modernized and more efficient real estate endeavor.

FAQs

Q. What is IoT for real estate?

A. IoT for real estate involves integrating the Internet of Things into property management in such a way that building operations become effortlessly interlinked with tenant experiences. IoT has allowed for the collection and analysis of data amongst real estate stakeholders such as landlords and tenants through interlinked devices and sensors.

Q. How is IoT used in real estate?

A. IoT technology is utilized within real estate for purposes such as optimizing management and enhancing efficiency in energy, surveillance, predictive maintenance, and customization of tenants’ services. Using IoT-enabled devices and data analytics in real estate helps real estate professionals monitor building environmental conditions, automate some simple daily activities, and improve amenities. All these functions enable residents and property owners to live and work in a convenient, safe, and interactive space.

Q. Can IoT in real estate help improve the security of my property?

A. Yes, IoT can be very useful in ensuring that property is well secured through the use of surveillance equipment, intelligent door control, as well as live tracking. With security solutions like automatic threat detection and remote access control, IoT technology provides proactive security for real estate properties and residents.

THE AUTHOR
Sudeep Srivastava
Co-Founder and Director
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