Indian Real Estate Sector Accelerates Technology Adoption as Developers Focus on Efficiency and Compliance

New Delhi, May 12: Indian real estate sector is increasingly integrating digital and data-driven technologies across project planning, construction, sales and asset management as developers respond to rising operational costs, regulatory requirements and changing consumer expectations.

Market Size and Growth Projections

The report, titled "Reimagining India's real estate landscape – The role of technology in value chain transformation," was unveiled during a FICCI real estate summit. According to the report, India's real estate market is currently valued at approximately USD 650 billion and is projected to expand to nearly USD 5.8 trillion by 2047. The report noted that more than USD 16 billion has already been unlocked through REITs and InvITs.

Drivers of Technology Adoption

The report identified several factors driving technology adoption, including growing pressure to improve cost efficiency, heightened regulatory and compliance expectations, rising participation from institutional capital, and evolving consumer behaviour among homebuyers. Developers are increasingly moving away from manual and reactive operational models towards scalable digital systems capable of improving project visibility and reducing inefficiencies.

Changing Consumer Expectations

Speaking on the sidelines of the summit, Hitesh Singla, Co-Founder and Chief Investment Officer at Square Yards, stated that Indian homebuyers have become significantly more informed and digitally aware. Consumers now expect integrated services throughout the property transaction journey rather than viewing home purchases as isolated transactions. Areas such as digital documentation, AI-led analytics, virtual property discovery, automated compliance systems and integrated customer management platforms are witnessing growing deployment.

Structural Changes

The report observed that India's real estate industry is witnessing structural changes in how projects are planned, marketed and managed. Technology is increasingly becoming the core operating layer supporting multiple stages of the real estate lifecycle, including site selection, project design, construction execution, sales, customer engagement and asset management. Industry stakeholders noted that the adoption of PropTech solutions is gradually reshaping operational practices across residential and commercial real estate.