Navigating the Digital Shift: Adoption of Smart Homes and Prop-Tech-Enabled Purchasing Journeys in the Indian Real Estate Market

Mayank  Saxena; Aditi  Sojatia

doi:10.69968/ijisem.2025v4i2161-169

Authors

Mayank Saxena Vice-Chancellor, Sage University Bhopal (M.P).
Aditi Sojatia Research Scholar

DOI:

https://doi.org/10.69968/ijisem.2025v4i2161-169

Keywords:

Prop-Tech, Smart Homes, Technology Adoption, Indian Real Estate, Consumer Behavior, Urban Tier Dynamics

Abstract

The Indian real estate sector stands on the precipice of a profound technological metamorphosis, catalysed by the ascension of smart-home ecosystems and the rapid proliferation of Property Technology (Prop-Tech) platforms. These digital innovations are not merely auxiliary tools but are redefining the contours of home-buying behavior—streamlining discovery, enhancing decision-making, enabling secure transactions, and elevating post-purchase engagement. With India's Prop-Tech market projected to surpass $1 billion by 2025, and smart-home penetration forecasted to reach 15.4 million households by 2026, the digital tide is both formidable and irreversible. This paper offers an extensive secondary research analysis to explore the nuanced behavioral, infrastructural, and socio-cultural dimensions of Prop-Tech and smart-home adoption in India. Anchored in the Technology Acceptance Model (TAM), Diffusion of Innovation (DOI), and Theory of Planned Behavior (TPB), the study synthesizes empirical findings and theoretical insights from global and domestic literature spanning (2018–2024.)

Key facilitators of adoption—such as perceived utility, digital fluency, environmental consciousness, and aspirational lifestyle alignment—are increasingly prominent among urban, tech-savvy millennials. Conversely, deterrents including elevated acquisition costs, cybersecurity apprehensions, fragmented device interoperability, and digital illiteracy among semi-urban populations, remain significant. Government interventions like the Smart Cities Mission (₹98,000 crore) and Digital India campaign have laid a robust digital foundation, yet real penetration remains disproportionately skewed toward Tier 1 cities.

The investigation delineates Prop-Tech's transformative influence across the four phases of the home buying lifecycle: discovery (AI-based property curation), evaluation (VR site tours), transaction (blockchain-based registries and e-KYC), and post-purchase (IoT-enabled home automation). The paper culminates with strategic recommendations for bridging the digital divide, fostering inclusive innovation, and nurturing a robust Prop-Tech ecosystem capable of responding to India's complex urban-rural continuum.

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