India's real estate sector is undergoing a rapid technological shift, with artificial intelligence adoption among corporate real estate players jumping from under 5 per cent in 2023 to 91 per cent in 2025. This transformation mirrors a global surge in AI-driven restructuring of the property industry.
Market Growth Projections
According to the FICCI-KPMG report released last month, the Indian real estate market is projected to grow from $650 billion in 2025 to $5.8 trillion by 2047. The sector already contributes 7.3 per cent to the national GDP and remains one of the largest drivers of employment, capital formation, and urban development in the country.
Housing and Retail Expansion
The report estimates that India will add nearly $906 billion worth of new housing stock by 2034, while an additional 41 million sq ft of retail space is expected to come online by 2028. Industry experts attribute this growth to a supportive policy environment, expanding digital infrastructure, and rising institutional investment, factors that are also accelerating the sector's adoption of emerging technologies such as artificial intelligence.
AI's Potential Value
According to McKinsey & Company, AI could unlock up to $550 billion in value across the real estate value chain. However, realising that potential will depend less on deploying technology and more on rethinking workflows, exercising human judgment, and building new operating models.
Real estate services firm JLL noted that while the share of companies running corporate real estate AI pilots has surged from 5 per cent to 92 per cent in three years, most organisations remain in early experimentation. Many still lack a systematic approach to implementation, widening the gap between technology leaders and those still catching up.
Industry Leaders' Perspectives
At the FICCI summit, the Chairman of FICCI's Committee on Urban Development and Real Estate, Raj Menda, said: “Technology is no longer a point of differentiation; it is a condition for access to capital and trust. The platforms that build accordingly will define India's real estate leadership.”
Anand Kumar, Chairman of the Real Estate Regulatory Authority (RERA), NCT of Delhi, urged stakeholders to prioritise transparency and collective accountability. “I urge all stakeholders to be honest, to move beyond individual interests, and to make this sector more efficient and transparent,” he said, stressing the need for greater awareness of the RERA Act among buyers and sellers alike.
The TOI Real Estate Desk is a focused team of seasoned journalists and market watchers dedicated to decoding the ever-evolving property landscape for The Times of India readers. With a sharp eye on trends, policy shifts, and market movements, the team brings clarity to one of the most significant investment decisions in people’s lives.
