India’s Smart Homes Mkt to Grow by 9.14% by 2028; Green Buildings Mkt to Reach $39 Bn by 2025: NAREDCO Resurgent Study

New Delhi, June 14, 2024: The Smart Homes Market in India is projected to grow by 9.14% from 2024 to 2028, reaching a market volume of USD 9.2 billion. This growth is attributed to the increasing integration of Internet of Things (IoT) devices in homes, which enhance security, energy efficiency, and convenience. Startups specializing in smart home solutions are expected to see substantial growth during this period.

Additionally, the green buildings market in India is set to rise significantly, contributing USD 39 billion (Rs 3.2 lakh crore) by 2025. This trend reflects the growing emphasis on sustainable construction, with green buildings becoming a larger share of new developments.

These findings are detailed in the white paper “Pathways to Sustainable Living & Building Practices,” jointly prepared by Resurgent India and NAREDCO. The white paper, titled “Green Foundations,” was released at the 3rd NAREDCO Mahi Convention 2024. According to the report, the commercial segment of green buildings in India is expected to generate a market worth USD 11 billion, while the residential segment is projected to reach USD 28 billion, together totaling USD 39 billion by next year.

Dr. Ananta Singh Raghuvanshi, President of NAREDCO Mahi an arm of Reality body NAREDCO,  highlighted that with the increasing focus on sustainability, PropTech startups offering eco-friendly and energy-efficient solutions are gaining traction in India’s real estate market. These startups are leveraging IoT and artificial intelligence (AI) to optimize energy management systems, reduce consumption, and improve overall building efficiency. IoT-based energy management systems, for instance, can reduce energy consumption by up to 20 percent in commercial complexes by optimizing lighting and HVAC systems. Moreover, Indian startups are integrating smart home solutions and energy-efficient practices to create more environmentally friendly living spaces.

The white paper also emphasizes advancements in sustainable construction technologies, noting the development and implementation of green buildings designed to be environmentally sustainable and resource-efficient throughout their lifecycle. It highlights technologies such as cool roofs, stormwater management systems, geothermal heating, solar power, electrochromic smart glass, and energy-efficient smart appliances being integrated into these buildings to enhance their sustainability.

These technologies not only lead to significant energy and water savings but also improve indoor air quality and increase property value.

The report also highlights the rise of PropTech startups, which refers to the innovative use of technology in the real estate sector. These startups are utilizing advancements such as artificial intelligence, blockchain technology, big data, and IoT to revolutionize the buying, selling, renting, and management of properties. 

The rise of PropTech startups is transforming the real estate sector in India. By leveraging cutting-edge technologies like artificial intelligence, these startups are reshaping how properties are bought, sold, rented, and managed. With the urban population expected to reach 600 million by 2031, the demand for smart city solutions and advanced real estate technologies will continue to grow, driving significant innovation and growth in the industry concluded G Hari Babu, President, Naredco.