Smart homes are becoming increasingly popular, although there are differences in terms of the technology and the areas of the home that consumers are seeking to convert to digital technology.
In terms of growth, it is estimated that by 2020, having some level of smart home technology will increase to 59 percent of dwellings, at least according to research from global consultancy firm Ernst and Young (based on data pertaining to the U.K.).
Globally, the overall smart home market is expected to grow from $76.6 billion in 2018 to $151.4 billion by 2024, at a compound annual growth rate of 12 percent. In particular, smart lighting usage is expected to triple by 2022.
Examples of smart home technology include home cinema; advanced security, such as viewing the home interior remotely using a smartphone; integrated lighting; climate control; voice activated smart systems and multi-room audio.
In light of this, the company HomeProtect teamed-up with Jason Orme, an expert self-builder, to provide homeowners an indication of average costs for home improvements together with an estimate of the impact on property value from undertaking the work.
The outcome of this collaboration has revealed that as technology advances, investing in smart home tech may give a homeowner an edge over other properties.
The analysis finds that smart home technology could add up to 5 percent to the value of the property. However, this very much depends on the type of technology and the degree that it can be upgraded in terms of the technology being up-to-date.
For this reason, the experts recommend that someone does not install ‘built-in’ electronics such as home cinemas or speakers, since these types of electronics goods will quickly go out of date.
As to what does add value, then the areas to focus on are loft and cellar conversions, as well as extensions, will likely add value to the home. When these are equipped with climate control and smart lights, then this a is a feature that can produce a premium.
