New Delhi: Generative AI (GenAI) has the potential to add USD 14-17 billion to India's growing real estate economy over the next seven years by enhancing operational efficiency, according to a report.
Consultancy firm EY-Parthenon and realtors' apex body CREDAI, in its report 'GenAI in Indian real estate - Scaling the next frontier of innovation' released on Thursday, stated that the adoption of GenAI could increase sales velocity by 30-50 per cent and reduce project costs.
"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.
Developers could see a 30-50 per cent improvement in sales velocity and around 30 per cent faster product launches, it added.
"With the addition of GenAI in the business landscape of Indian real estate, the impact on the sector's gross value added in the next seven years is estimated to be 3-4 per cent, in absolute value, which is indicative of USD 14-17 billion," the report said.
Generative AI helps in generating new ideas and designs, among other things, by extracting patterns from existing datasets.
Chaitanya Seth, Partner - Real Estate practice, EY-Parthenon India, noted that GenAI is fast becoming central to value creation and competitiveness, making inaction a growing strategic risk.
"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.
CREDAI President Shekhar G Patel said the next phase of growth in the real estate sector would be driven not only by scale, but through intelligence, speed and the ability to make better decisions across the project lifecycle.
"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 added.
CREDAI represents more than 13,000 developers across 230 city chapters in 20 states.
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