Assessment of the Internet of Things Projects on the Real Estate Market

Abstract

Abstract This paper discusses the concept of the Internet of Things. It analyzes the existing definitions, and introduces a new definition of this concept. In this research study, the experience of the Internet of Things in the world has been analyzed, the possibilities of deflationary development of the economy have been identified with the use of the Internet of Things. The paper presents directions for important qualitative changes in economy and for organizational and technological transformations of production, which may be induced by the development of the Internet of Things. The “smart home” system market has been examined. Its potential has been identified for Russian companies that work in the field of information and telecommunication technology connected with the development of the Internet of Things. To justify the efficiency of money investments into the “smart home” system and services, the algorithm of cost estimation for such systems, which can be used in making a decision about investing, is proposed. The authors conducted the review of the typical projects offered with the “smart home” system. The power law dependence of the unit cost of the system installation from the floor space of the object has been received. The internal rate of return on investment for the introduction of the “smart home” system has been identified at the level of 50%.