The Future of Automation in Indian Residential Real Estate

As the benefits of Smart Homes become obvious to all sections, automation will move beyond luxury projects and make its presence felt in middle-income projects too.

Automation and digitalisation are gathering momentum globally in recent years. One of the sectors where automation is playing a pivotal role worldwide is in residential real estate. The Internet of Things and digital technologies are prime drivers in the creation of Smart Homes. But automation has found limited traction in Indian realty, which has primarily been in the luxury residential segment because of cost implications.

Presently, automation is used in lighting, HVAC (heating, ventilation and air-conditioning), security, surveillance and safety systems, audio and entertainment, white goods as well as other appliances, etc. Automation and Smart systems in homes are installed to promote comfort, convenience and cost savings through the controlled or lower use of energy.

Smart and Premium

Accordingly, Smart Homes come with advanced automatic systems and devices that are connected. For instance, appliances, lights, computers, HVAC and entertainment systems, CCTVs and security apparatus, etc. would all be connected and able to communicate between themselves, besides being controlled through a remote, Smart-phone or computers.

Considering the cost implications of maintaining such devices, it is no surprise that a 2015 survey by energy management company Schneider Electric revealed Smart Homes are preferred in luxury projects, especially properties in the Rs5 crore or higher bracket.[1] The survey also indicated safety and security, convenience and energy efficiency were the main motivators for Smart Homes in India.

One reason for a greater emphasis on safety and security systems is that the millennia-old tradition of joint families stands disrupted. In nuclear families, generally, both partners are working. As long as there are no children, security is not paramount. But the moment a child enters their lives, the perspective changes. With CCTV cameras monitoring every movement within the four walls, the parents tend to feel more secure about their child left home with the help.

Therefore, Smart Homes will gain more traction among various sections because many families in urban India increasingly have homes with both parents working. As stated earlier, however, cost constraints are a major impediment in mass adoption, particularly since real estate in the country is anyway considered overpriced. Nonetheless, though a Smart Home will cost at least 10% more than a conventional one, the former pays for itself within a few years via savings accruing from less use of power and other resources as well as lower upkeep costs.

The other option is to retrofit an existing home with Smart systems since this is less expensive. Organic or retrofitted, a Smart Home should only be built through the services of companies specialising in Smart Home technologies.

Significant Benefits

Today, Smart Homes are gradually making their presence felt in major metros and upscale areas such as Gurgaon and the NCR. It may be noted that some developers are touting their projects as Smart Homes without understanding what this is all about. Simply installing a few Smart devices does not quality a project to be labelled ‘Smart’. For this, all systems and processes should be in sync to ensure overall connectivity, lower usage of resources and higher cost savings.

To elaborate, Smart energy meters can monitor requirements and regulate energy flow throughout the house accordingly. In this way, energy use is always minimised, lowering monthly bills. Likewise, Smart HVAC systems with sensors will shut off the minute a room is unoccupied. Most people tend to leave lights, fans and ACs on even after they leave a room, leading to 5–10% extra billing. Smart Homes ascertain such wastage is eliminated.

Cost savings apart, Smart systems safeguard and save lives too. For example, circuit breakers can automatically stop electricity supply in case there is an accidental short circuit or fire.

Of course, as more people hear about the significant benefits of Smart Homes and the sizeable cost savings accruing in the long run that repay the initial one-time investments, such systems will be deployed in middle-class homes too, where value for money is a top priority in home buying. In bathrooms, where a fatal shock during any power leakage is always a dangerous possibility, ground-fault circuit breakers can stop power supply almost immediately.

Given these tremendous benefits, the advantages of Smart Homes cannot be quantified purely in monetary terms. The lives of buyers’ near and dear ones would clearly matter more. Therefore, it devolves upon developers to educate their customers about the benefits of Smart Homes so that the concept gains faster acceptance in India.

----------------------------------------------------------------------------------------------------------The author is Managing Director, SARE Homes

[1] The Smart Home Market in India, An Industry Perspective, Schneider Electric 2015 survey