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India's real estate market is projected to grow nearly nine-fold to USD 5.8 trillion by 2047 from USD 650 billion in 2025, while artificial intelligence (AI) adoption in the corporate real estate sector has surged to 91 per cent in 2025 from less than 5 per cent in 2023, according to a joint report by FICCI and KPMG.
The report, titled "Reimagining India's Real Estate Landscape: The role of technology in value chain transformation," said the sector is undergoing a major digital transformation as developers increasingly adopt AI, digital twins, blockchain, drones and IoT-enabled systems across the real estate value chain. "The finding in this report that I would ask every reader to pause on is this: AI adoption in India's corporate real estate sector moved from under 5 per cent in 2023 to 91 per cent in 2025," Raj Menda, Chairman, FICCI Committee on Urban Development and Real Estate & Chairman, Supervisory Board, RMZ, said in the report. He added, "Technology has ceased to be a point of differentiation. It is a condition of access to capital and a condition of trust." According to the report, India's real estate sector currently contributes 7.3 per cent to the country's GDP and continues to remain one of the largest employment generators. The report highlighted that technology adoption is now moving "beyond front-end visibility towards end-to-end lifecycle integration across planning, execution and sales." It said technologies such as Building Information Modelling (BIM), digital twins, IoT-enabled monitoring, drone-based tracking and AI-driven valuation models are increasingly being integrated into real estate operations to improve execution, transparency and investor confidence. The report also pointed to growing institutional participation in the sector. It noted that over USD 15.8 billion has already been unlocked through REITs and InvITs, while foreign firms leased a record 9.1 million square feet of office space across India's top nine cities in the first quarter of 2026. On the residential side, the report projected the value of new homes in India to touch USD 906 billion by 2034, while 41 million square feet of new retail developments are expected to become operational by 2028. Speaking at the FICCI Real Estate Summit, Anand Kumar, Chairman, Real Estate Regulatory Authority (RERA), NCT of Delhi, called for greater transparency and efficiency in the sector. "I urge all stakeholders to be honest, to move beyond individual interests, and to make this sector more efficient and transparent," Kumar said. He also stressed the need to develop Tier-2 and Tier-3 cities to reduce migration pressure on metropolitan regions and said the sector should aim for "higher growth rates of 20-25 per cent." The report further noted that government-led digital reforms are helping modernise land and registration systems. It said over 360 million land parcels have been assigned geo-referenced unique identifiers across 29 states and union territories, while nearly 89 per cent of sub-registrar offices are now integrated with revenue systems for real-time record updates. According to the report, blockchain-enabled property management systems have already verified more than 340 million property documents, helping reduce disputes and improve ownership traceability. Neeraj Bansal, Partner and Head - India Global, KPMG in India, said the sector is moving towards "integrated, technology-led platforms that strengthen decision-making and improve capital efficiency." "The next phase of growth is expected to depend on moving beyond isolated digitisation towards end-to-end, enterprise-led transformation," the report added. (ANI)
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