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Generative Artificial Intelligence (GenAI) could contribute an additional USD 14-17 billion to India's real estate economy over the next seven years by improving productivity, accelerating project execution and enhancing customer engagement, according to a joint report by EY-Parthenon and CREDAI. The study estimates that GenAI adoption could increase sales velocity by 30-50 per cent, shorten product launch timelines by up to 30 per cent and improve operational efficiencies across the development lifecycle. The report suggests that the technology could contribute an additional 3-4 per cent to the sector's gross value added by 2033. Industry leaders believe GenAI's application across planning, design, construction, sales and customer interactions could significantly influence how developers manage projects and respond to evolving market demand.
Generative Artificial Intelligence (GenAI) has the potential to contribute between USD 14 billion and USD 17 billion to India's real estate sector over the next seven years, according to a report released by consultancy firm EY-Parthenon and realtors' body CREDAI on June 18.
Titled GenAI in Indian Real Estate – Scaling the Next Frontier of Innovation, the report highlights the growing role of artificial intelligence in transforming development processes, project management, sales operations and customer engagement across the real estate value chain.
According to the study, the adoption of GenAI technologies could increase the sector's gross value added by an estimated 3-4 per cent over the next seven years. The projected economic contribution is expected to come from improved operational efficiency, faster decision-making, reduced project timelines and enhanced customer-facing capabilities.
The report noted that developers are increasingly recognising GenAI as a strategic tool that can help improve competitiveness, streamline operations and generate deeper customer insights. It stated that the technology's ability to analyse large datasets and generate new design, planning and operational solutions is creating opportunities across multiple stages of the development lifecycle.
One of the key findings of the report is the potential impact on sales performance. According to the study, developers adopting GenAI could achieve a 30-50 per cent increase in sales velocity by improving customer targeting, lead conversion and engagement processes. The report also estimated that product launches could be accelerated by approximately 30 per cent through improved planning, design optimisation and faster decision-making.
The study further highlighted opportunities for reducing project costs and improving efficiency across construction, procurement and project management functions. GenAI-driven automation and data analysis tools could help developers optimise resource allocation, identify risks earlier and improve project execution timelines.
Chaitanya Seth, Partner – Real Estate Practice at EY-Parthenon India, stated that GenAI is increasingly becoming a key driver of value creation and competitive advantage within the sector. He noted that the technology has the potential to deliver a two-to-three-fold increase in enterprise value over the short to medium term by compressing land-to-launch cycles by 20-30 per cent, accelerating sales by more than 30 per cent and delivering efficiency improvements across costs and timelines.
CREDAI President Shekhar G Patel said the future growth of India's real estate sector would depend not only on expansion and scale but also on intelligence-led decision-making and execution efficiency. He stated that the benefits of GenAI extend beyond operational improvements and can influence planning, design, construction, sales and customer engagement activities throughout the project lifecycle.
According to Patel, wider adoption of the technology could enable developers to respond more effectively to market requirements, improve execution quality and enhance the overall homebuyer experience.
CREDAI, which represents more than 13,000 developers through over 230 city chapters across 20 states, expects technology-led transformation to play an increasingly important role as the sector adapts to evolving customer expectations and growing project complexity. The report suggests that GenAI could become a significant enabler of productivity and innovation as India's real estate market continues to expand over the coming decade.
Source - PTI
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