GenAI could lift realty sales velocity by up to 50%, speed up launches by 30%: Report
New Delhi, June 19
Generative Artificial Intelligence could help Indian real estate developers increase sales velocity by 30-50 per cent and accelerate product launches by around 30 per cent, according to a report by EY-Parthenon and CREDAI.
The report, titled "GenAI in Indian Real Estate", said early adopters of the technology could also achieve a 20-50 per cent improvement in workforce productivity and reduce customer acquisition costs by 20-50 per cent.
It noted that advances in AI-powered customer intelligence, automated design processes and predictive project monitoring are driving a shift towards intelligence-led operations in the sector.
According to the report, this transition could shorten decision-making timelines from months to weeks or even days, affecting project planning, feasibility assessment, construction management and customer engagement.
"GenAI is fast becoming central to value creation and competitiveness, making inaction a growing strategic risk," said Chaitanya Seth, Partner, Real Estate Practice, EY-Parthenon India.
He said GenAI-driven transformation could help unlock two to three times enterprise value in the short to medium term through faster land-to-launch cycles, higher sales growth and improved operational efficiency.
The report estimated that GenAI could add USD 14-17 billion to the real estate sector's Gross Value Added (GVA) over the next seven years, representing a 3-4 per cent increase in sectoral value.By 2030, the technology is projected to contribute USD 359-438 billion to India's GDP, translating into an additional 5.9-7.2 per cent impact on the economy.
"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," said Shekhar G Patel, President, CREDAI.
Patel said the report's findings indicate that GenAI can significantly improve sales velocity, speed up project launches and enhance productivity across various functions.
"What is particularly encouraging is that the impact of GenAI extends beyond operational efficiency," he added.
According to the report, the use of GenAI across planning, design, construction, sales and customer engagement can help developers respond more effectively to market demands, improve project execution and deliver a better experience for homebuyers.
"Going forward, the focus should be on harnessing these capabilities to build a smarter, more efficient and resilient real estate sector," Patel said.
The report also highlighted that GenAI can reduce deal evaluation time by about 50 per cent and cut land-closure turnaround time by 30-35 per cent.
It added that automated feasibility modelling, seller assessment and internal rate of return scenario generation can enable developers to evaluate up to 2.5 times more deals, supporting improved asset performance and portfolio decision-making.
— ANI
Reader Comments
As a homebuyer who spent 2 years dealing with project delays, I welcome anything that speeds up construction. But will this actually reduce costs for buyers? Or just line developers' pockets? 🙄
Finally some good news for the sector! The 20-50% reduction in customer acquisition costs could mean better deals for buyers. Let's see if builders pass on the savings or keep it for themselves. GenAI in property valuation and deal screening sounds promising too!
The report mentions 2-3x enterprise value creation but doesn't talk about data privacy or job losses for architects and designers. Sure GenAI is smart, but we need safeguards to protect workers in the sector. Not everything needs to be automated yaar.
14-17 billion USD addition to real estate GVA in 7 years sounds impressive. But our sector has deep-rooted issues like RERA compliance delays, input cost inflation, and liquidity problems. GenAI can't fix all that. Still, any efficiency gain is welcome if it means faster possession for buyers. 🏡
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