New Delhi: Generative AI (GenAI) could significantly improve performance across India’s real estate sector, with developers potentially achieving a 30–50 per cent increase in sales velocity and accelerating product launches by around 30 per cent, according to a report released by EY-Parthenon and CREDAI.
The report, titled “GenAI in Indian Real Estate”, highlights how AI-driven customer intelligence, automated design workflows and predictive project monitoring could transform planning, execution and customer engagement across the real estate value chain.
According to the report, early adopters may benefit from a 20–50 per cent improvement in workforce productivity, a 20–50 per cent reduction in customer acquisition costs and substantially faster decision-making cycles, reducing timelines from months to weeks or days.
Chaitanya Seth, Partner – Real Estate Practice, EY-Parthenon India, said, “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. This is not about incremental digitization, rather, it is about rewiring the operating model, redefining customer experience, strengthening brand advocacy, and building brands that scale faster and sell smarter.”
Speaking on the launch of the report, Shekhar G. Patel, President, CREDAI, said, “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. What is particularly encouraging is that the 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 further added. “India’s real estate sector is entering a new era shaped by rapid urbanisation, expanding infrastructure and rising consumer aspirations. Going forward, the focus should be on harnessing these capabilities to build a smarter, more efficient and resilient real estate sector that can deliver greater value to homebuyers and support India’s urban growth ambitions.”
The report estimates that GenAI could contribute between US$14 billion and US$17 billion to the sector’s Gross Value Added (GVA) over the next seven years, representing a 3–4 per cent uplift in real estate value.
At a broader level, the report projects that GenAI could contribute US$359–438 billion to India’s GDP by 2030, adding an estimated 5.9–7.2 per cent to the national economy.
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The study also notes that GenAI could reduce deal evaluation time by approximately 50 per cent, lower land-closure turnaround time by 30–35 per cent and enable developers to evaluate 2.5 times more deals through automated feasibility modelling, seller assessment and Internal Rate of Return (IRR) and Return on Investment (ROI) scenario generation.
According to the report, GenAI applications span the entire real estate lifecycle, from land acquisition and project planning to construction, sales and post-sales customer engagement.
