Purpose – The purpose of this paper is to review an emerging type of dwelling, indicated as Smart Home, with a focus on future user lifestyles and needs. Trends toward sustainability and technological changes dramatically alter the concepts of Smart Home. Consequently, real estate decisions are going to be affected by the Smart Home development. Inspired by research in the field of user centered design and future lifestyles, the authors redefine the housing design to increase the acceptance of Smart Homes in the society. Design/methodology/approach – Upcoming trends and developments in housing technologies and concepts are reviewed and analyzed. A multidimensional definition of a Smart Home is suggested which allows a better understanding of the new elements and spaces of this future home. A new concept of a home environment is presented in which virtual space and ambient intelligent space is integrated within the physical space. Furthermore, possible changes in lifestyles enabled by new technological developments are identified. Linking the new home environment concepts with the user's lifestyles provides a research framework for the investigation of Smart Homes. This framework is helpful in addressing the trends of sustainable society inside the domain of Smart Homes and Smart Real Estate. Findings – In this paper, the authors provide answers to questions on the feasibility and impact of new technologies on future lifestyle and dwelling in the domain of real estate. Originality/value – The presented research framework is not only relevant for academic researchers but also for real estate investors, because it highlights the risks that need to be managed when developing Smart Real Estate.