The Internet of Things (IoT) in property development has the most practical purpose, which is to cut expenses and increase profit. Therefore, new technologies in this industry have been in use for quite a long time and rather successfully. PerenioIoT estimates that within three to five years, smart home systems will not only be a competitive advantage in the eyes of buyers but a common standard in residential housing construction. Both major companies and the state are moving in this direction.
Earlier this year, Russia launched a public discussion of a draft national standard for smart city evaluation. It will be the first document to formalize a systematic assessment of municipal services and the quality of life in a city.
Technology of the future
Paying bills online, monitoring a home when owners are absent, setting up household appliances – these operations make just a short list of services sought after by modern consumers.
With broadband internet available to every home, it has become normal to have all the home management services at hand. Mobile apps connect users with devices and manage IoT. Developing IoT and special mobile apps opens up numerous new opportunities. IoT has become a priority and a driver for mobile app development in the past five years.
The professional rental market is actively using technology platforms. According to Deloitte consulting company, 52% of real estate rental and purchase services currently use digital technologies, and 22% plan to adopt them in the near future.
The developers of business class and luxury housing have begun to introduce smart home solutions at the stage of construction. Smart homes provide an additional competitive advantage on the market and allow for increasing the cost and class of residences while improving comfort and safety at a small cost. According to various estimates, smart homes can reduce utility bills from 15% to 40% in just a year.
Markets will grow due to IoT, but not all of them
Economic crises will speed up the natural evolution of IoT by nudging businesses and customers to use this technology in all areas. PerenioIoT has conducted a survey among its clients and partners to assess the future trends of the next 1-2 years.
In large cities, the market will offer 30% more smart homes of comfort class: not packaged solutions, but complexes of integrated smart systems installed in new buildings.
Real estate brokers will use virtual reality to sell real estate to remote customers and use chatbots to assess clients and make paperless agreements.
Potential and existing buyers, sellers, tenants and owners want to have access to their real estate and financial information at all times. The functionality and volume of the market of mobile apps for remote access to the apartment, payment of utility bills and remote communication with the managing company will increase.
Developers will transition to IoT technologies that will unite all equipment and meters in the building on one platform. The information about works, construction materials, equipment and utility lines will be available for analyzing on order to optimize the cost and work schedule in real time.
The housing and utility sector will start using IoT technologies considerable later. In case a residential building initially has smart metering and video surveillance systems installed, property management agents will eventually choose to introduce new solutions little by little. If such systems are lacking, a property management agent will most likely choose not to install them on its own. The process is hindered by low competition in the building management market and users’ unawareness of the advantages offered by ‘smart buildings,’ as well as outdated utilities and limited finances.
Installing smart home systems in a residential building provides advantages for all its residents: motion sensor switches lights on automatically only when a person walks into a building; temperature sensors detect its reduction – for instance, due to an open window in the entrance hallway – and stop the heating.
IoT helps save up to 30% of money paid for public utilities, which has been already proven by pilot projects in Russia. Yet, it is possible to expect residential buildings and entire towns to transition to smart home technologies only after introduction of digital platforms and services to involve city residents in managing urban processes at a national level.
By Sergei Kostevich, Executive Director, PerenioIoT