Artificial intelligence is steadily finding its way into India's real estate sector, with its application expanding across planning, construction, sales and customer engagement. The latest EY-Credai report estimates GenAI could add USD 14-17 billion to the sector over the next seven years.
However, the opportunity extends beyond adopting AI tools. The report argues that fragmented data, legacy workflows and limited digital readiness could restrict the technology's impact, making strong data foundations, skilled talent and integrated systems essential for translating AI into measurable business gains.
Building With Intelligence
Artificial intelligence is steadily moving beyond routine automation to reshape how real estate projects are planned, designed and executed. As adoption gathers pace, the focus is shifting towards embedding AI across the project lifecycle to improve efficiency and decision-making. The report estimates this could improve workforce productivity by 20-50 per cent across key business functions.
Ramesh Nair, CEO, Nemetschek India, said "the greatest value creation" would come from design, planning, construction and lifecycle asset management, where AI can significantly reduce inefficiencies. He added that integrating AI with Building Information Modelling (BIM) and Digital Twins throughout the project lifecycle would enable connected data, predictive insights and seamless collaboration.
He further noted that "digital maturity", rather than AI adoption alone, would define long-term success. According to Nair, integrating AI with BIM and Digital Twins across workflows would strengthen decision-making, improve project execution and create a more connected delivery ecosystem.
Smarter Growth, Better Returns
Beyond improving project execution, AI is also expected to reshape the economics of real estate by helping reduce costs, accelerate sales and improve capital efficiency. The report estimates GenAI can increase sales velocity by 30-50 per cent, reduce customer acquisition costs by 20-50 per cent and shorten land-to-launch timelines by 20-30 per cent, creating opportunities to improve business performance.
On translating AI-driven efficiencies into financial gains, Rajat Bokolia, CEO, Newstone, said AI can improve profitability by lowering costs and accelerating project delivery, allowing "faster capital rotation" and enabling fresh investments. He added that those integrating AI into day-to-day operations, supported by quality data, skilled talent and well-defined digital processes, would be better positioned to unlock long-term value.
He further said that while AI-led efficiencies would strengthen profitability, a competitive market could gradually pass some of these benefits to homebuyers through "better pricing, improved quality and faster delivery." Bokolia, however, noted that land prices and regulatory costs would continue to influence housing affordability.
Strengthening Digital Foundations
Building AI at scale requires more than successful pilot projects. As AI applications become more sophisticated, the conversation is increasingly centred on the digital ecosystem that will determine whether the technology can be deployed consistently across the real estate value chain.
Turning to the structural changes needed for wider AI adoption, Pradeep Aggarwal, Founder and Chairman, Signature Global (India), said AI can improve capital allocation, reduce execution risks and enhance transparency through predictive analytics, financial modelling and real-time project monitoring. He added that these capabilities could make the sector increasingly attractive to institutional investors.
He further emphasised that "fragmented land records", inconsistent approval processes and limited data standardisation remain major bottlenecks to AI adoption. Aggarwal said faster digitisation of land records, seamless online approvals, stronger cybersecurity and greater investment in digital skills would be critical to unlocking AI's "full economic potential" across the real estate sector.
Workforce In Transition
As artificial intelligence becomes more deeply embedded across the real estate value chain, its impact is expected to extend beyond productivity and project delivery. The report estimates AI can improve workforce productivity by 20-50 per cent, highlighting the growing need for a workforce equipped to work alongside emerging technologies.
Explaining how AI will reshape the workforce, Bokolia said "repetitive work" such as documentation, customer support and data analysis would increasingly be automated, allowing professionals to focus on strategy, relationships and decision-making. He added that AI literacy, digital technology, data interpretation and problem-solving would become essential capabilities across the sector.
Aggarwal also underscored that AI would transform rather than replace jobs. According to him, sales teams, project managers and engineers would increasingly rely on AI-driven insights and intelligent construction technologies, adding that stronger investment in upskilling would be crucial to avoid a future talent gap.
From Reactive To Predictive
As real estate projects become larger and more complex, delays, cost overruns and execution risks continue to challenge timely delivery. Artificial intelligence is now being explored not just as a tool to improve efficiency, but also to help anticipate problems before they begin to affect projects.
Taking this a step further, Nair said AI can "forecast demand", monitor construction progress and identify risks early, enabling better utilisation of capital while reducing project delays. He added that these capabilities could significantly improve planning and execution across the project lifecycle.
He further said that higher transparency and more reliable project data would strengthen investor confidence and improve the sector's ability to attract institutional capital. According to Nair, wider AI adoption would make the sector "more efficient, predictable and better prepared for long-term sustainable growth.” |
