India’s real estate sector, currently valued at $650 billion, is undergoing a major digital transformation as developers increasingly adopt data-driven technologies to improve efficiency amid rising cost pressures, tighter regulatory compliance and more informed and engaged homebuyers, according to a joint report by FICCI and KPMG.
Long characterised by fragmented workflows, paper-based processes and limited visibility across stakeholders, the sector is now deploying artificial intelligence (AI), digital twins, blockchain, drones and IoT-enabled systems across the real estate value chain, the report titled Reimagining India’s Real Estate Landscape: The Role of Technology in Value Chain Transformation noted.
“Long characterised by fragmented workflows, paper-based processes and limited visibility across stakeholders, the sector is now increasingly adopting digital and data-driven tools across the value chain,” said the report, released at the 19th edition of the FICCI Real Estate Summit, held in the capital on May 7.
Citing data from other sources, it said that India’s real estate market is projected to expand nearly ninefold to $5.8 trillion by 2047 from $650 billion in 2025. It also highlighted the rapid adoption of AI in the corporate real estate sector, with usage rising to 91% in 2025 from less than 5% in 2023.
“Technology is emerging as a core operating layer underpinning the entire real estate value chain, spanning site selection, design, construction delivery, sales and asset management,” the report said.
FICCI and KPMG listed key drivers of technology adoption in the sector, including cost-efficiency imperatives; enhanced regulatory and compliance expectations; rising institutional capital participation; and more informed and engaged homebuyers.
“These forces are pushing developers to move away from manual, reactive processes towards scalable, proactive digital solutions,” the report said.
This reflects that the market is moving decisively from fragmented private ownership towards institutionally managed, transparent platforms, it noted.
$16 billion unlocked through REITs and InvITs
It also mentioned that over $16 billion has been unlocked through REITs (real estate investment trusts) and InvITs (Infrastructure Investment Trusts). 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 $906 billion by 2034, while 41 million square feet of new retail developments are expected to become operational by 2028.
The report further noted that government-led digital reforms are helping modernise land and It said over 360 million land parcels have been assigned geo-referenced unique identifiers across 29 states and union territories. At the same time, nearly 89 per cent of sub-registrar offices are now integrated with revenue systems for real-time record updates.
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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.
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.”
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 said.
Raj Menda, chairman, Ficci Committee on Urban Development and Real Estate and Chairman, Supervisory Board, RMZ, said, “India’s real estate sector has earned its place as one of the most consequential growth stories in the world. Sustaining that position now demands digital discipline, embedded not as a front-end tool but across the entire project lifecycle.”
Vipul Roongta, MD and CEO of HDFC Capital Advisors Ltd, said two-thirds of India’s is residential, and with a young and aspirational population, the demand for residential units will grow.
On the sidelines of the event, Hitesh Singla, co-founder and CIO, Square Yards noted that there has been a decisive shift in the way Indians engage with real estate.
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“Consumers today are far more informed, digitally aware and experience-driven than they were a few years ago. Property transactions are no longer viewed as standalone purchases. Buyers now expect a seamless journey across discovery, financing, advisory services, documentation and post-sales support. This is where proptech is creating tangible value for the industry,” he said.
Technology is helping bring greater transparency, speed and accountability to a sector that has traditionally been fragmented and heavily reliant on offline processes, Singla added.