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.
Developers could see a 30-50 per cent improvement in sales velocity and around 30 per cent faster product launches with the help of GenAI.
The report also finds that GenAI can cut deal evaluation time by about 50 per cent, reduce land-closure turnaround time by 30-35 per cent, 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.
These possibilities stem from AI-driven customer intelligence, automated design workflows, and predictive project monitoring, signalling a shift from scale-driven operations to a more intelligence-led approach to real estate, the report said.
Further, early adopters could experience strong operational benefits, including a 20-50 per cent improvement in workforce productivity, 20-50 per cent lower customer acquisition costs, and decision cycles that may compress from “months to weeks or days”.
The report noted that such advancements have the potential to reshape how developers assess feasibility, plan projects, manage construction, and engage with customers.
Chaitanya Seth, partner, real estate practice, EY-Parthenon India, said, “We see GenAI-led transformation unlocking 2-3x enterprise value within the short to medium term, by compressing land-to-launch cycles by 20-30 per cent, driving 30 per cent-plus sales acceleration, and delivering a 5-20 per cent step change in efficiency across cost and timelines.”
Seth emphasised that this 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.
Shekhar 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. 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.”
