Generative artificial intelligence (GenAI) could add $14-17 billion to the real estate sector's gross value added (GVA) over the next seven years, equivalent to a 3-4 per cent uplift in real estate value, according to a joint report by EY-Parthenon and Credai. At a broader macro level, GenAI could contribute US$359-438 billion to India's GDP by 2030, translating into an additional 5.9-7.2% impact on the national economy. This projection represents a significant transformation potential for the real estate industry through AI-driven operational improvements. The report emphasizes that GenAI will equip the industry to unlock significant enterprise value by systematically unlocking latent efficiency and growth across the value chain, particularly at its most persistent pain points. As per the latest report, real estate developers are increasingly recognising the strategic value of GenAI in unlocking operational efficiency, customer insights and competitive differentiation when deployed effectively.
Developers could experience substantial operational improvements with GenAI implementation. They could see up to 50% higher sales velocity and around 30% faster product launches. Additionally, GenAI can cut deal evaluation time by about 50%, reduce land-closure turnaround time by 30-35%, and enable 2.5x more deals to be evaluated through automated feasibility modelling, seller assessment, and internal rate of return (IRR)/return on investment (ROI) scenario generation. The technology can also automate land feasibility assessments, generate micro-market insights and financial models in minutes, accelerate design and planning through generative layouts and automated bills of quantities, and enhance construction delivery via drone-based monitoring and predictive schedule control. These possibilities stem from AI-driven customer intelligence, automated design workflows and predictive project monitoring, signaling a shift from scale-driven operations to a more intelligence-led approach to real estate. The report notes that GenAI helps in generating new ideas and designs by extracting patterns from existing datasets, fundamentally transforming how developers approach project planning and execution.
Early adopters of GenAI technology could experience significant operational advantages, including 20-50% improvement in workforce productivity and 20-50% lower customer acquisition costs. Decision cycles may compress from months to weeks or days, fundamentally changing how real estate projects are assessed and executed. The technology can also boost sales performance through hyper-personalized campaigns, smarter lead qualification and dynamic pricing, and strengthen post-sales experience with predictive maintenance, automated customer responses and sentiment analytics. As per the report, 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. The report indicates that developers could see 30-50% improvement in sales velocity and around 30% faster product launches, with the technology driving 30%+ sales acceleration and delivering a 5-20% step-change in efficiency across cost and timelines.
The report indicates that these advancements have the potential to reshape how developers assess feasibility, plan projects, manage construction, and engage with customers. According to Chaitanya Seth, partner at EY-Parthenon India, GenAI-led transformation could unlock 2-3x enterprise value within the short to medium term by compressing land-to-launch cycles by 20-30% and delivering a 5-20% step change in efficiency across cost and timelines. Seth emphasized that this transformation is not about incremental digitisation; rather, it is about rewiring the operating model, redefining customer experience, strengthening brand advocacy, and building brands that scale faster and sell smarter. Shorter cycles can do more than just pull revenue forward; they will reduce uncertainty and allow developers to operate with shorter planning horizons, which has historically been rare in the sector. These shifts reflect a broader industry move toward AI-enabled operating models, with the impact extending beyond operational efficiency to planning, design, construction, sales and customer engagement, helping developers become more responsive to market needs and improve execution quality.
Shekhar Patel, president of Credai, emphasized that the next phase of growth in Indian real estate will be driven by intelligence, speed, and better decision-making across the project lifecycle. As reported by EY-Parthenon, India's real estate sector is entering a new era shaped by rapid urbanisation, expanding infrastructure and rising consumer aspirations. 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 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. Patel noted that the impact of GenAI extends beyond operational efficiency, with its application across planning, design, construction, sales and customer engagement helping developers become more responsive to market needs, improve execution quality and deliver a better experience for homebuyers. Credai represents more than 13,000 developers across 230 city chapters in 20 states, providing significant reach for implementing GenAI solutions across the industry.
