Generative artificial intelligence could add between 14 and 17 billion USD to the gross value added of the Indian real estate sector over the next 7 years. This is stated in a joint report by EY-Parthenon and the Confederation of Real Estate Developers Associations of India CREDAI. According to the analysis, the effect would be equivalent to an increase of about 3-4% in the value created by the sector.
The report “GenAI in Indian Real Estate“ examines the application of generative AI across the entire life cycle of a real estate project – from land acquisition and financial valuation to design, construction, sales and after-sales service.
Sales can be accelerated by up to 50%
One of the most significant predictions is related to sales. EY-Parthenon and CREDAI estimate that the use of generative AI for market analysis, personalized offers, automated communication and better qualification of potential buyers can increase the speed of sales by between 30% and 50%.
Automation can also reduce the cost of customer acquisition, while simultaneously freeing up human resources for higher value-added activities. EY points to a potential for a 20-50% improvement in employee productivity and a 20-50% reduction in customer acquisition costs for early adopters of the technology.
Faster start of new projects
Generative AI can have a significant impact even in the initial phases of a construction project. According to the report, the time from land acquisition to project launch can be shortened by 20-30%.
The technology allows for automated modeling of different scenarios, generation of project variants, preparation of quantitative bills and faster comparison of financial parameters.
EY-Parthenon estimates that the overall process of evaluating potential deals can be shortened by about 50%, and the time to close land deals by 30-35%. With the help of automated models, companies could consider up to 2.5 times more investment opportunities.
AI is also entering the construction site
The application of the technology does not end with design and sales. In construction, generative AI can be used to predict delays and cost overruns, control via drones, detect deviations from the project and optimize the supply of materials.
According to EY, such solutions have the potential to reduce time and budget overruns by 10-20%, while increasing the productivity of implementation teams by 20-50%.
From automation to a new management modelThere is also a change in the way decisions are made in the real estate business. Instead of estimates based primarily on experience and multiple manual processes, generative AI allows for the simultaneous analysis of prices, sales rates, profitability, costs and risks.
This can shorten some management cycles from months to weeks or even days and give developers a faster response to market changes.
Generative AI has the potential to transform from an additional technological tool into a key factor in the competitiveness of Indian developers.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be seen at imot.bg