The Changing Face of Indian Urban Living
Walk into any modern apartment in Bengaluru, Mumbai, or Gurugram, and you’ll likely find something that wasn’t common just five years ago; voice-controlled lighting, automated climate systems, smart meters, and even app-based security. The Indian housing story is being rewritten, and this time, the lead characters are technology and sustainability.
As urban India grapples with issues like overpopulation, resource scarcity, and environmental degradation, the future of urban living is shifting towards smart, sustainable homes, residences that are not only tech-driven but also environmentally conscious.

This blend of smart automation and green architecture is fast becoming the gold standard for real estate developers and discerning homebuyers alike.

1. What are smart homes? A quick primer
A smart home uses internet-connected devices to monitor and control various systems; lighting, temperature, security, and appliances to make living more efficient, secure, and comfortable.

1.1 Core features of smart homes in India (2025 Trends)
• Home Automation Systems: Centralized control of lighting, fans, air conditioning, and entertainment systems through apps or voice commands (Alexa, Google Home, Apple HomeKit).
• Smart Security Solutions: CCTV, motion detectors, biometric locks, and doorbell cameras integrated with mobile alerts.
• Energy Management Systems: Smart meters and sensors that optimize electricity usage and reduce waste.
• IoT-enabled Appliances: Smart refrigerators, washing machines, and ovens that can be remotely managed.
• Health and Wellness Sensors: Air quality monitors, UV sterilizers, and smart water purifiers ensuring a healthier indoor environment.

In 2025, these features have moved from luxury add-ons to mainstream expectations among middle- and upper-income homebuyers in metros.

2. Why is sustainability the next big revolution?
Sustainability in housing goes far beyond planting a few trees or installing solar panels. It’s about creating ecosystems that minimize the environmental footprint, reduce energy consumption, and promote responsible living.

2.1 Sustainable building practices include:
• Energy-efficient Design: Orientation and insulation that maximize natural light and airflow.
• Water Conservation: Rainwater harvesting, low-flow fixtures, and wastewater recycling.
• Renewable Energy Use: Solar roofs, solar water heaters, and EV charging points.
• Eco-friendly Materials: Recycled steel, fly ash bricks, bamboo, and low-VOC paints.
• Waste Management Systems: Segregation, composting, and smart disposal mechanisms integrated into societies.
In essence, sustainability isn’t just a buzzword, it’s becoming the foundation of modern real estate in India.

3. Smart Homes + Sustainability = The perfect urban living equation
The real magic happens when smart technology meets sustainability. The combination is transforming how we build, manage, and experience our living spaces.
Here’s how these two trends complement each other:

3.1 Smart tech sustainability outcome
• Smart thermostats and lighting Reduces energy consumption by 20 to 30%
• Automated irrigation systems Optimizes water use in landscaping
• Smart meters Tracks and minimizes electricity wastage
• AI-driven HVAC systems Lowers carbon footprint
• Solar panels with IoT monitoring Efficient energy generation and maintenance
• App-based waste tracking Encourages responsible disposal and recycling
This integrated approach is now at the heart of green-certified housing projects across India.

3.2 India’s growing smart home market

The Indian smart home market, once a niche segment, is now booming. According to Statista, the market value is expected to surpass USD 6.5 billion by 2025, growing at over 30% CAGR.

Fig 1. Smart home adoption: City-wise trends (2025 snapshot)

4. Key drivers of growth:
• Increased Internet Penetration: Over 850 million internet users by 2025 mean more connected households.
• Affordable Smart Devices: Prices of IoT-enabled devices have dropped by 40–50% in the past three years.
• Rising Environmental Awareness: Urban consumers increasingly prefer eco-conscious lifestyles.
• Government Push: Initiatives like Smart Cities Mission, Energy Conservation Building Code (ECBC), and PM Surya Ghar Muft Bijli Yojana promote green urban infrastructure.
• Corporate ESG Goals: Developers are now under pressure to align with sustainability benchmarks and green certifications (IGBC, GRIHA, LEED).

5. Developers leading the smart-sustainable revolution
Top developers are now reimagining their residential projects around the twin pillars of technology and sustainability.
• Tata Housing: Incorporates AI-driven building management systems and solar energy panels across premium projects.
• Godrej Properties: Focuses on carbon-neutral communities with waste management and smart energy tracking.
• Brigade Group: Introduced Smart Living Ecosystems in Bengaluru, with voice-enabled homes and centralized app controls.
• Prestige Group: Deploying IoT solutions in integrated townships to monitor energy and water efficiency.
• DLF and Mahindra Lifespaces: Pioneering IGBC platinum-rated green buildings with smart resource utilization.
Developers are realizing that tomorrow’s homebuyers are tech-savvy, environmentally aware, and value-driven.

6. Government push: Making smart and green the new normal
The Indian government’s policies and initiatives are creating a strong foundation for sustainable urban development.

Major Programs Encouraging Smart and Green Living
• Smart Cities Mission: Focuses on integrating technology-driven governance, smart infrastructure, and sustainable housing.
• Atal Mission for Rejuvenation and Urban Transformation (AMRUT): Encourages efficient water and sewage systems.
• Energy Conservation Building Code (ECBC): Mandates energy-efficient design in new constructions.
• FAME II Scheme: Boosts EV infrastructure in urban centers.
• Green Building Certification Programs: Incentivizes developers for achieving IGBC/GRIHA/LEED certifications.
These programs are pushing both developers and homeowners toward adopting smarter, greener lifestyles.

7. How smart homes contribute to sustainable living?
• Reduced Energy Consumption: Smart thermostats, LED lighting, and motion sensors optimize energy use. Studies show these systems can cut household electricity bills by up to 25 to 30%.

• Water Efficiency: Automated irrigation and smart water meters prevent wastage. In cities like Bengaluru and Chennai, such systems are helping combat severe water shortages.
• Waste Reduction: Smart waste management apps track disposal patterns, while in-building composters turn organic waste into manure.
• Healthier Indoor Environment: Smart air purifiers and CO₂ sensors improve air quality crucial in India’s polluted urban centers.
• Lower Carbon Footprint: When powered by renewable energy (solar or wind), smart homes drastically reduce emissions, supporting India’s Net Zero by 2070 goal.

8. What could be the challenges ahead?
While the outlook is promising, there are roadblocks on the path to widespread adoption.

Key Challenges:
• High Initial Costs: Smart devices and sustainable materials increase upfront home prices by 10 to15%.
• Limited Consumer Awareness: Many homebuyers still view sustainability as an aesthetic rather than a necessity.
• Technological Fragmentation: Lack of standardized smart home platforms leads to compatibility issues.
• Data Security Concerns: IoT systems raise privacy and cybersecurity challenges.
• Maintenance Complexity: Sustainable systems require regular maintenance and skilled personnel.
Yet, as awareness, affordability, and infrastructure improve, these challenges are rapidly being addressed by industry stakeholders.

9. The future: What urban living in 2030 could look like
Fast forward to 2030, Indian cities could look very different.

“Imagine waking up with your blinds automatically open to let in natural light. The temperature adjusts based on your sleep cycle. Solar panels on your rooftop power your morning routine. Your car, charged overnight from renewable energy, notifies you it’s ready. The building’s waste management system has already composted yesterday’s organic waste into usable fertilizer for community gardens”

This isn’t science fiction anymore. It’s the near future of Indian urban living. Emerging technologies like AI, blockchain, and 5G will take smart sustainability to the next level, enabling energy-trading communities, predictive maintenance, and zero-emission neighborhoods.

9.1 Why does this matter to homebuyers and investors?
For homebuyers, smart and sustainable homes offer:
• Lower utility bills
• Enhanced safety and comfort
• Higher resale value
• Healthier living environments

For investors and developers, they ensure:
• Long-term cost savings
• Compliance with green building codes
• Improved brand image and demand
• Access to ESG-focused funding
As a result, green-smart homes are now considered future-proof assets.

Building a Smarter, Greener Tomorrow
Urban India stands at the crossroads of rapid urbanization and environmental urgency. The fusion of smart home technology and sustainable design offers a way forward, one that balances growth with responsibility.
Cities like Bengaluru, Mumbai, and Hyderabad are already proving that intelligent, eco-friendly living isn’t just a luxury; it’s becoming the new urban standard. With supportive government policies, tech innovation, and a growing eco-conscious consumer base, India is well on its way to redefining urban living for the 21st century.
The homes of tomorrow won’t just be smart; they’ll be self-sustaining, interconnected, and conscious of the planet they inhabit.

Frequently Asked Questions (FAQs)

1. What is a smart home?
A smart home uses internet-connected devices to automate and control lighting, appliances, temperature, and security systems remotely through smartphones or voice assistants like Alexa and Google Home.

2. How do smart homes support sustainability?
Smart homes reduce waste and energy consumption through automated lighting, smart thermostats, and water-efficient systems. When combined with solar energy and eco-friendly designs, they enable truly green living.

3. Are smart homes expensive in India?
Initial costs can be 10 to 15% higher, but energy savings and lower maintenance quickly offset that. Today, even mid-range developers include smart features in new projects across metros.

4. Which Indian cities are leading the smart home trend?
Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, and Chennai are seeing the fastest adoption, with developers offering solar rooftops, EV charging, and app-based home automation.

5. Can older homes be converted into smart homes?
Yes. Modular IoT kits and plug-and-play devices make retrofitting easy. Homeowners can gradually upgrade lighting, appliances, and security systems without major renovation.

6. How much can smart homes save on utilities?
Smart homes can reduce electricity bills by 25–30% and water use by up to 20% through automation and real-time monitoring, contributing to both cost savings and sustainability.

7. How can homebuyers identify a truly sustainable project?
Look for green certifications like IGBC, GRIHA, or LEED, and ensure the project includes solar energy, rainwater harvesting, energy-efficient materials, and waste management systems.

8. What role does the government play in promoting smart housing?
Through initiatives like the Smart Cities Mission, ECBC, AMRUT, and FAME II, the government encourages developers to integrate technology, efficiency, and renewable energy into urban housing.

9. Are smart homes safe from data or hacking risks?
When secured with trusted brands, encrypted networks, and regular updates, smart homes are safe. Many Indian developers now work with cybersecurity experts for added protection.

10. What’s the future of urban living in India?
By 2030, India’s cities will feature AI-powered, net-zero communities homes that generate their own energy, recycle water, and adapt intelligently to residents’ lifestyles and the environment.

 

Source: JLL residential surveys 2025 | JLL Primary Research

Author & Editor: Sumedha Das