In the current era of digital transformation within the built environment, Extended Reality (XR) technologies offer new ways to manage buildings remotely. This study explores and justifies the use of Unreal Engine as a suitable environment for developing XR applications for remote building monitoring and control. Unreal Engine’s real-time rendering capabilities, advanced physics simulation, Blueprint visual scripting, and support for multi-user collaboration make it a compelling choice for engineering realistic, interactive, and data-driven virtual environments. The study presents a practical case study in which a prototype XR platform was designed and created using Unreal Engine to simulate and monitor building operations. The platform integrates architectural models and live IoT sensor data to create an XR platform, enabling users to interact with systems. The study established some key insights from the development process. This includes the usefulness of Blueprint scripting for non-programmers, the importance of real-time collaboration tools, and the value of photorealistic rendering in boosting multiple stakeholder engagement. Findings from the study suggest that Unreal Engine XR platforms can be useful in varying degrees of complexity, from a simple tool for visualisation to comprehensive decision-making and support systems. The study recommended that Unreal Engine can be used more in implementing smart building initiatives. Also, the industry will benefit from further research into long-term use, scalability, and integration with IoT and AI technologies. Ultimately, this study reinforces the possibility of the engine’s role in supporting smarter, more connected, and more responsive building environments.