Written by Scott Lord,
Bridging Underwriting Officer – Direct Brokers and Clients
market financial solutions 
Real estate in general is becoming digital. This doesn't mean that homeowners are installing more Ring doorbells or that more businesses are using door fobs. They may be doing that and other things, but what's really becoming digital is the buildings themselves.
Smart homes and intelligent buildings are emerging as important asset classes in their own right. And as a tech-savvy generation comes to the forefront of the rental and purchase markets, there could be a lot of demand for real estate investors to take advantage of in 2025 and beyond.
Some may already be leading the way here. Recent research from Savills shows that 76% of top landlords, property owners and investors are at an early stage of integrating technology into their strategies, with 18% making significant progress. Additionally, 88% acknowledge the importance of technology in shaping tenant preferences and decisions.
Many of London's modern commercial properties are already incorporating smart technology in key ways. Space House on Kemble Street, for example, is “fully electric with an energy-efficient façade, bespoke chilled beam AC with heat recovery, daylighting technology and BMS-integrated automatic window controls for mixed-mode ventilation. Intelligent Buildings.
Scalpel on Lime Street has integrated occupancy sensors, allowing you to navigate across eight Bishopsgates using a single digital app. That's not to say the housing market is lagging here, though. Smart technology could prove even more important when it comes to people's homes.
According to e-on next, smart home technology (SHT) will be used in 39% of households in 2024 alone, and this number is expected to rise to 50.2% by 2050. The key is for real estate investors to incorporate this technology into their plans. It may pay substantial dividends in the future. Another study by Admiral Money found that 76% of UK homeowners would be more likely to buy a property if it had energy-saving measures such as SHT.
Additionally, according to Samsung's 2024 Smart Home Buyer Index, approximately 79% of people considering moving (renting or buying) a home in the next five years want a smart home. These people are willing to pay a premium of 7.7% on the average UK house price for the privilege. The average house price in the UK is £292,000, according to the latest data from the ONS. Therefore, property investors could see their property value increase by more than £22,000 just by implementing SHT.
Long-term planners also need to be aware of what the next generation will prioritize when purchasing a home. Young people may be struggling to climb the housing ladder right now, but as they advance in their careers and inherit literally trillions of dollars over the next few years, capital could flood into the real estate market. expensive.
So what do young people want in their homes? According to the Digital Home Survey by EY Decoding, smart home bundles (61%) rank alongside broadband and mobile combinations among 25 to 34-year-olds has been.
But specifically, what real estate technologies are worth considering for the next few years? StartUs Insights examines the options available these days and looks at advanced robotics (robotic cleaning, We found that clean technologies (energy management systems, smart HVAC systems), and connected technologies (smart building management, real-time analytics) can all be particularly effective. It will still be valuable in 2025 and beyond.
Property investors and BTL landlords may find themselves more inclined to improve and upgrade their properties as we move towards a more digital world. Alternatively, there may be a temptation to invest in new assets that are already equipped with the latest flashy smart technology.
Fortunately, the specialist lending market can help with all of this. We have been at the forefront of innovation in the real estate market for several years now and are keen to embrace what's new and exciting as the real estate market continues to evolve.
