Mumbai, June 26 -- Generative artificial intelligence could add 14 to 17 billion (bn) dollars to the real estate sector's gross value added (GVA) over the next seven years, equivalent to a three to four per cent uplift in real estate value. The joint report by EY-Parthenon and Credai projects gains in sales velocity, launches, productivity and decision making across the sector.
Developers could see a 30 to 50 per cent improvement in sales velocity and around 30 per cent faster product launches. The report finds that GenAI can cut deal evaluation time by about 50 per cent, reduce land closure turnaround by 30 to 35 per cent and enable two point five times more deals to be evaluated through automated feasibility modelling, seller assessment and internal rate of return (IRR) and return on investment (ROI) scenario generation.
These outcomes are attributed to 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. Early adopters are expected to obtain operational benefits including 20 to 50 per cent improvement in workforce productivity, 20 to 50 per cent lower customer acquisition costs and decision cycles that compress from months to weeks or days.
Chaitanya Seth, partner in the real estate practice at EY-Parthenon India, said the firm sees GenAI led transformation unlocking two to three times enterprise value by compressing land to launch cycles by 20 to 30 per cent, driving 30 per cent plus sales acceleration and delivering a five to 20 per cent step change in efficiency across cost. Seth added the change involves rewiring the operating model, redefining customer experience and strengthening brand advocacy. Shekhar Patel, president of Credai, said the next phase of growth in Indian real estate will be driven by intelligence, speed and better decision making across the project lifecycle and urged the industry to harness these capabilities to build a smarter, more efficient and resilient sector that can deliver greater value to homebuyers and support India's urban growth ambitions.
Published by HT Digital Content Services with permission from Construction World.