AI Revolutionizes Real Estate: Cutting Costs, Halving Timelines, and Boosting Affordability
Artificial Intelligence (AI) is transforming the real estate sector by significantly reducing construction costs, accelerating project timelines, and minimizing delays. These advancements are making housing more affordable and efficient for homebuyers.
AiReal EstateConstruction CostsProject TimelinesHomebuyersReal Estate MumbaiSep 13, 2025
“The use of Artificial Intelligence in real estate will transform the way projects are executed,” he said. “AI enables us to improve efficiency, cut costs, and accelerate timelines by reducing delays and wastage.”
He added that once AI engines are fully trained and widely adopted, the impact on construction economics will be significant. “Developers will be in a position to pass on these savings to homebuyers, ultimately bringing down property prices. This marks a fundamental shift where technology not only makes projects faster and more efficient but also makes housing more affordable.”
AI has the potential to cut construction costs by 20–25% and shorten construction timelines by 40–50% for high rises and minimize delays, thereby directly benefiting homebuyers, Jay Shah, founder of Kaizen AI, told HT.com.
Industry leaders at the conference highlighted how AI-driven optimization is transforming the way real estate projects are planned and executed. By simulating multiple design scenarios, construction loadings, and excavation challenges, AI enables developers to pinpoint the most efficient project blueprint. This helps minimize delays, cut costs, and maximize usable space, critical factors in high-demand markets.
“We took inputs like basic drawings, project plans, ran numerous iterations through AI, and we were able to get the design outcomes within seven days. In the process, we managed to maximize structural efficiency and maximize parking capacity,” Shah, whose company helps in enhancing the efficiency of large-scale real estate developments, said.
Shah explained that in one of the projects, they were able to optimize the real estate design to increase the carpet area of the apartments by over 1 lakh sq ft. In another luxury project, the Marriott Executive Apartments in Navi Mumbai, AI-driven optimization of planning and design helped reduce the construction timeline from five years to just three.
Shah cited an example of an ongoing project close to Mahalaxmi Race Course in Mumbai, a high-rise development with a scale of over 300 meters, which is also being developed by a listed developer. Typically, for a 150-meter building, the benchmark ratio of RERA carpet area to total construction area falls between 2.0 and 2.25. However, given the height and complexity of this project, optimization of design parameters was critical to balance feasibility, efficiency, and timelines.
In the first design option rendered by the AI, the project required 29.1 lakh sq. ft. of constructed area with a loading of 3.12, but involved excavating 18 meters of hard rock near the sea, adding nearly two years just to reach ground level. The second option, with 37% mechanical parking, reduced the area to 26.26 lakh sq. ft. and loading to 2.82, while cutting excavation to 10 meters, limiting delays to about one year, Shah said.
Shah pointed out that his company is currently working on a project in Navi Mumbai that is expected to be delivered within the next quarter. “Brownfield projects often remain stalled because there is no scope to expand, while Floor Space Index (FSI) norms may have changed since the project was first approved,” he explained.
“By applying AI-based optimization, we can reconfigure the design within existing constraints, making the development profitable for the developer by an average of 10% margin, while ensuring long-delayed homes are finally delivered to homebuyers,” he said.
The Confederation of Real Estate Developers’ Associations of India (CREDAI), representing private real estate developers, is hosting the 23rd edition of its flagship event, CREDAI NATCON 2025, in Singapore from September 11–13, 2025.
Frequently Asked Questions
How does AI reduce construction costs in real estate projects?
AI reduces construction costs by optimizing design and planning, minimizing wastage, and improving efficiency. It can cut costs by 20–25% through better resource management and streamlined processes.
What is the impact of AI on project timelines?
AI can shorten construction timelines by 40–50% by reducing delays and optimizing the construction process. This is achieved through efficient planning and real-time adjustments based on data-driven insights.
How does AI benefit homebuyers?
AI benefits homebuyers by making housing more affordable and efficient. Developers can pass on the savings from reduced costs and faster timelines, ultimately lowering property prices.
What are some examples of AI-driven optimization in real estate?
Examples include the Marriott Executive Apartments in Navi Mumbai, where AI optimization reduced the construction timeline from five years to three, and a high-rise project in Mumbai where AI increased the carpet area and optimized parking capacity.
How does AI help in unlocking stuck real estate projects?
AI helps by reconfiguring designs within existing constraints, making stalled projects profitable and ensuring that long-delayed homes are finally delivered to homebuyers.
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