Beyond Affordability: How Smart and Sustainable Features Influence Pricing and Buyer Decisions in Indian Housing

Abstract

The increasing demand for environmentally responsible and digitally enhanced living has positioned smart and sustainable homes as major value drivers in the Indian residential real estate sector. This study investigates how advanced automation technologies and green design features influence price premiums, buyer preferences, and conversion likelihood. A quantitative approach was adopted involving responses from 310 prospective homebuyers and pricing comparisons from 40 real estate projects across major Indian cities. The findings reveal that smart and sustainable homes command a significant 8–12% price premium, reflecting clear buyer willingness to invest in energy savings, safety, and enhanced lifestyle convenience. Regression and mediation analyses further indicate that while both smart and sustainability features positively affect booking intent, trust in the developer and perceived future savings act as strong mediators in converting interest into purchase decisions. The results underscore the need for developers to strategically integrate green building systems with reliable digital assurance to strengthen market positioning and sales performance. This study offers actionable insights for Indian real estate stakeholders and highlights future research opportunities focused on post-occupancy outcomes and adoption across broader market segments.