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 1. Home Home
 2. Breadcrumb Arrow Starting a Business
 3. Breadcrumb Arrow Real Estate





THIS TECH IS TRANSFORMING REAL ESTATE AND IS CREATING A MAJOR MARKET OPPORTUNITY
SMART HOME TECHNOLOGY IS DISRUPTING REAL ESTATE, PRESENTING A SIGNIFICANT MARKET
OPPORTUNITY FOR DESIGNERS, BUILDERS, ENTREPRENEURS AND INVESTORS.

By Anis Uzzaman • Dec 8, 2022

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Opinions expressed by Entrepreneur contributors are their own.

Real estate development and construction have changed since the 1960s:
Contractors typically built the container and let the homeowner fill in the
rest. However, smart home technology is disrupting the industry, presenting a
major market opportunity for designers, builders, entrepreneurs and investors.
Recent research from Mordor Intelligence predicts that the smart home market,
valued at $79.13 billion in 2020, is expected to grow to $313.95 billion by
2027.

As a result, I expect to see an increase in the term "smart home automation" —
referring to Internet-connected devices that monitor and control essential
household functions such as lights, cameras, locks and climate. As the industry
transforms, it presents a prime opportunity for entrepreneurs, corporations and
investors.



Touchless interactions and whole-home automation that drive efficiency and save
energy are among the concepts driving consumer interest. Automated heating and
cooling will see high demand, with new government efficiency regulations
requiring replacing or retrofitting existing systems. In January 2023, all
residential central air-source heat pump systems sold in the U.S. must meet new
minimum energy efficiency standards.

This trend is about improving the home experience — from programming devices
that always behave the same to automating devices that anticipate and understand
the homeowner's needs. As evidence, Grandview Research predicts that smart
kitchens will see an impressive compound annual growth rate of 30.5% from 2021
to 2030. Grandview also predicts that security and surveillance technology
installations will increase by 31%.

Related: 3 Aspects of the Real Estate Industry That Can Benefit Immensely from
the Metaverse



Think keyless door locks that use a PIN or connected doorbells that always know
when a guest (or delivery) has arrived. For multi-family developments,
AI-powered, public space video cameras that track what's happening around the
community and automated exterior lighting will be in demand.

I see a significant market opportunity because the smart home market has matured
over the past five years, poised to move from "do it yourself" to "do it for
me." Buyers will likely look increasingly for pre-built homes with curated
technology. According to a Coldwell Banker Real Estate survey, 71% of buyers
want a tech-enabled "move-in ready" house, while 61% of millennials favor
smart-tech homes; so do 59% of parents with children living in the house.

Making this a reality is new artificial intelligence (AI) technology that learns
its residents' patterns and preferences, then intuitively sets ambiance routines
to match. Energy-saving thermal windows add to a home's efficiency. Every smart
device in each home is choreographed to work in concert with each other,
connecting to a centralized home management app that is very manageable and
simple to use. Such systems are updated regularly via the cloud, and all
hardware is housed indiscriminately in a central hub in the home. Technology
fully integrates into the structure and blends into the minimalist interior
design.

Second-generation, AI-powered smart home technology self-learns, adapting to the
routines and preferences; with most software solutions offered via the cloud, it
continues to improve over time. In the ideal smart home setup, all devices are
synchronized and orchestrated, made accessible through a smartphone or a
computer. Call it a smart home with a genius IQ.



Related: 5 Ways AI Technology is Making Our Buildings Smarter


URBAN DENSITY

Growing urban density and awareness of environmental sustainability require
designers and builders to think about domestic space in a new way. The new urban
home is comfortable and welcoming while using space with greater efficiency,
flexibility, and responsiveness compared to houses of the past. Not to be
underestimated is the impact of the COVID-19 pandemic, which underscored
long-held beliefs that the home can and should contribute to the health and
wellness of its inhabitants.

A first-of-its-kind prototype is a multi-family community of 18 two-bedroom
homes called HOMMA HAUS Mount Tabor, outside downtown Portland. This kind of
home — purpose-built to become the foundation of holistic well-being for its
residents — must include a versatile modern design, multi-functional use of
space and curated, pre-configured technology built-in before the resident
occupies the space.

A great example of this trend is in Portland, Oregon. The Portland market is
attractive for builders and investors: The city is a rapidly growing urban
center that needs high-density housing solutions that move beyond the
traditional detached single-family home. Urban residents are progressive, seek
balanced lifestyles and welcome innovation that challenges the status quo.




REAL ESTATE TRENDS IN URBAN AREAS

Real estate trends are pointing toward modern designed, open floor plans that
offer adaptability. Large windows and courtyard views help residents connect
with nature inside the home. A skylight in the stairwell adds natural light.
Built-in storage under the staircase for storing shoes and other things keeps
clutter minimum; an outside storage area next to the second-floor patio keeps
large or seasonal items out of the living space. A community bike storage room
within the building is convenient and frees up additional space within the home.
There is the efficient placement of lights and sensors. An unassuming,
out-of-sight cabinet holds all the technology hardware.

Residents in growing urban centers like Portland typically value a close
connection to nature and regularly participate in outdoor activities.
Developments such as this one take advantage of materials with an organic feel
that creates a sense of connection to nature. Carefully selected oak flooring,
Corian kitchen countertops, and cedar fencing bolster the environment.
Landscaping with bamboo and trees creates shade and further mitigates sound to
maintain quiet inside the homes.

Real estate will see more focus on balancing resident privacy with creating
connectedness between members of the community. Smart technology, combined with
well-designed common spaces, makes this happen. Modern developments often have
courtyards with a balance of quiet space and gathering space for community
members.

As the real estate industry evolves, holistic and adaptive urban living will
drive the industry. Savvy builders will combine modern design, architecture, and
technology into homes that provide are combined into one product — the home —
that has been built to provide beauty, comfort and wellness. Startup founders,
corporate executives and investors should keep an eye on these trends and be
ready to capitalize on opportunities they will create.

Wavy Line Wavy Line
Anis Uzzaman

Entrepreneur Leadership Network Contributor

General Partner and CEO, Pegasus Tech Ventures

Anis Uzzaman is the founder and CEO of Pegasus Tech Ventures, a Silicon
Valley-based venture capital firm that offers intellectual and financial capital
to emerging technology startups. Its Startup World Cup is one of the world's
largest global startup competitions.


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