GenAI to Boost Real Estate GVA by $14-17 Billion Over Seven Years: Report
Generative artificial intelligence (GenAI) is poised to add $14-17 billion to the real estate sector's gross value added (GVA) over the next seven years, according to a joint report by EY-Parthenon and Credai. This represents a 3-4 per cent uplift in real estate value.
Developers stand to benefit from a 30-50 per cent improvement in sales velocity and approximately 30 per cent faster product launches, thanks to the integration of GenAI. The report also highlights that GenAI can cut deal evaluation time by about 50 per cent, reduce land-closure turnaround time by 30-35 per cent, and enable 2.5 times more deals to be evaluated through automated feasibility modelling, seller assessment, and internal rate of return (IRR)/return on investment (ROI) scenario generation.
These advancements are driven by AI-driven customer intelligence, automated design workflows, and predictive project monitoring. This shift from scale-driven operations to a more intelligence-led approach promises to transform the real estate industry. Early adopters of GenAI are expected to experience strong operational benefits, including a 20-50 per cent improvement in workforce productivity, 20-50 per cent lower customer acquisition costs, and a significant reduction in decision-making cycles from months to weeks or even days.
Chaitanya Seth, partner in the real estate practice at EY-Parthenon India, emphasized the transformative potential of GenAI. 'We see GenAI-led transformation unlocking 2-3 times the 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,' he said. Seth further noted that this transformation is not just about incremental digitization but involves rewiring the operating model, redefining customer experience, strengthening brand advocacy, and building brands that scale faster and sell smarter.
Shekhar Patel, president of Credai, added that the next phase of growth in Indian real estate will be driven 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,' Patel stated.
The report underscores the potential of GenAI to reshape how developers assess feasibility, plan projects, manage construction, and engage with customers. By leveraging these advanced technologies, the real estate industry can achieve higher efficiency, faster project delivery, and a more customer-centric approach, ultimately contributing to a more robust and sustainable sector.
