Artificial intelligence is set to reshape India’s real estate sector, with generative AI (GenAI) expected to unlock billions of dollars in value by changing how homes are designed, built, sold and managed.According to a report by EY-Parthenon and the realtors’ apex body CREDAI, GenAI has the potential to add $14-17 billion to India’s growing real estate economy over the next seven years by improving operational efficiency and decision-making.The report, titled ‘GenAI in Indian real estate – Scaling the next frontier of innovation’, said the technology could significantly speed up sales, reduce project costs and help developers create more responsive housing solutions.
Smarter planning, faster construction
GenAI can help developers analyse large amounts of data, generate design ideas, predict market demand and improve project planning. By identifying patterns from existing datasets, the technology can assist in creating new designs and solutions across the real estate lifecycle.As per the report, developers adopting GenAI could see a 30-50 per cent improvement in sales velocity and around 30 per cent faster product launches.The technology could also reduce the time taken between acquiring land and launching projects by 20-30 per cent, while improving efficiency across costs and timelines.Chaitanya Seth, partner – real estate practice at EY-Parthenon India, said GenAI was becoming central to value creation and competitiveness in the sector.“We see GenAI-led transformation unlocking 2–3 times enterprise value within the short to medium horizon, by compressing land-to-launch cycles by 20–30 per cent, driving 30 per cent+ sales acceleration, and delivering a 5–20 per cent step-change in efficiency across cost and timelines,” he said.
Homes designed around buyers’ needs
Beyond construction, AI could change how buyers interact with developers and choose their future homes.From personalised property recommendations to AI-powered virtual assistants, the technology can help buyers make faster and more informed decisions. Developers can also use AI tools to understand changing customer preferences and design projects accordingly.CREDAI President Shekhar G Patel said GenAI’s impact would go beyond improving efficiency and could enhance the overall home-buying experience.“Impact of GenAI extends beyond operational efficiency. Its application across planning, design, construction, sales and customer engagement can help developers become more responsive to market needs, improve execution quality and deliver a better experience for homebuyers,” he said.
AI-driven growth for India’s real estate sector
The EY-Parthenon-CREDAI report estimated that GenAI could contribute 3-4 per cent in absolute terms to the sector’s gross value added over the next seven years, translating into $14-17 billion.“Real estate developers are increasingly recognising the strategic value of GenAI in unlocking operational efficiency, customer insights and competitive differentiation when deployed effectively,” the report said.CREDAI, which represents more than 13,000 developers across 230 city chapters in 20 states, said the next phase of growth in real estate would depend not only on expansion but also on intelligence, speed and better decision-making.With AI moving from experimental tools to mainstream business applications, the homes of the future may not just be built faster but could also be more personalised, efficient and aligned with the needs of residents.
