The Future of Smart Homes: What Buyers and Investors Need to Know

With the advent of smart homes in the real estate market, people are extremely intrigued to explore its potential in the real estate market, whether it is a buyer or an investor. According to the data, the global smart home market was valued at $84.5 billion in 2024 and is predicted to reach $116.4 billion by 2029. The biggest hurdle of these residence types is that people are too scared to invest in them due to limited information regarding their potential in the market and whether they are safe to buy. Read along to uncover all the valuable facts about smart homes, such as their market value, facilities offered, etc.

What is a Smart Home Technology?

Many buyers and investors lack knowledge about smart homes and do not know the difference between an advanced-facilitated house and an ordinary house. In simple words, a smart home is a residence that utilizes internet-connected tools for remote monitoring and appliances and systems management, including lighting, heating, security and access controls, and much more. It is also referred to as "Home automation" or domotics (automated system to control and manage home equipment).

What advantages and disadvantages does a smart home offer?

Before buying smart home devices or making an investment in these residences, you must know about the advantages and downsides these smart homes offer. Please refer to the sections below to learn the pros and cons smart home provides to homeowners and investors. Once you go through these pointers, you will be able to evaluate whether you should purchase this home easily.

(i) Advantages of Smart Home

• A smart home offers greater convenience, comfort, safety, and control in your residence through a smart home app on your mobile or other smart device.
• It provides efficient energy usage because smart home devices ensure hassle-free operations through internet access to control lighting, cameras, etc.
• Despite costly installation, these tools enable homeowners to save money on appliances and electronics over time by lowering energy costs.
• It also offers multiple benefits, such as smart doorbells that allow you to view and address visitors who come to your door when you are not at home.

(ii) Disadvantages of Smart Home

• Smart home devices are internet—and technology-dependent, which is why they are prone to security risks and bugs and can be hacked by adept hackers.
• The smart home tools come in all price ranges, but their installation cost and full-home charges are extremely expensive, making them not ideal for budget-conscious residents.
• Using these tools is quite intricate due to the multiple learning steps involved. Moreover, the added effort of maintaining and periodically updating the technology is troublesome.

How much does a smart home cost?

First-time buyers and potential customers of smart homes have a misconception that smart homes are too expensive. However, this is not the truth because smart home products are of a wide variety, so they come in different price ranges. These devices can range from $250 to over $10,000. Please note that if you want to transform your entire house into an advanced home, that will cost around $10,000 to $50,000 because, besides the equipment, installation charges are also involved.

Is it easier to resell a smart home?

If some investors or buyers are not satisfied with spending their money on the smart home, they often wonder whether it can be resold to regain their money. You will be surprised to know it is extremely easy to resell smart homes because of their increasing demand in the real estate market. Moreover, the resale value of these types of houses generally increases in terms of curb appeal. Please note that the resale value also depends on various factors, such as the neighborhood, location, market, etc.