Generative AI (GenAI) is poised to transform India’s real estate sector, with developers potentially achieving a 30-50% improvement in sales velocity and accelerating product launches by nearly 30%, according to a joint report by EY-Parthenon and CREDAI.
The report, titled GenAI in Indian Real Estate, highlights how AI-powered customer intelligence, automated design workflows and predictive project monitoring are enabling the sector to shift from traditional scale-driven operations to a more intelligence-led growth model.
Productivity gains
According to the report, early adopters of GenAI could realize significant operational benefits, including a 20-50% increase in workforce productivity, a 20-50% reduction in customer acquisition costs and faster decision-making cycles that could shrink from months to weeks or even days.
The findings suggest that AI technologies can reshape multiple aspects of real estate development, from land acquisition and project feasibility assessments to construction management and customer engagement.
Key to value creation
“GenAI is fast becoming central to value creation and competitiveness, making inaction a growing strategic risk. We see GenAI-led transformation unlocking 2-3X enterprise value within the short to medium horizon, by compressing land-to-launch cycles by 20-30%, driving 30% sales acceleration and delivering a 5-20% step-change in efficiency across cost and timelines,” said EY-Parthenon India, Partner – Real Estate practice, Chaitanya Seth.
Industry outlook
The report estimates that GenAI could contribute $14-17 billion to the Indian real estate sector’s Gross Value Added (GVA) over the next seven years, translating into a 3-4% uplift in sectoral value.
At the national level, GenAI is expected to contribute between $359 billion and $438 billion to India’s GDP by 2030, creating an additional economic impact of 5.9-7.2%.
Significant opportunity
“The next phase of growth in Indian real estate will be driven not only by scale, but increasingly by intelligence, speed and the ability to make better decisions across the project lifecycle. The findings of this report suggest that Generative AI has the potential to significantly improve sales velocity, accelerate project launches and enhance productivity across multiple functions, making it a significant opportunity for the sector,” said CREDAI President Shekhar G Patel.
Faster deal closures
The report highlights that GenAI can reduce deal evaluation timelines by nearly 50%, shorten land closure turnaround times by 30-35% and enable developers to evaluate 2.5 times more opportunities through automated feasibility modelling, seller assessment and ROI scenario generation.
Use cases across the lifecycle
The report identifies several high-impact use cases for GenAI across the real estate value chain. These include automating land feasibility assessments, generating micro-market intelligence and financial models within minutes, accelerating design processes through generative layouts and automated Bills of Quantities (BoQs), and improving construction monitoring through drone-based inspections and predictive scheduling tools.
Shift towards AI-led operations
According to the report, the adoption of GenAI reflects a broader industry transition towards AI-enabled operating models. Developers are increasingly leveraging data, analytics and digital technologies to improve asset performance, enhance portfolio management and drive long-term business value.