India's Real Estate Sector Embraces Digital Transformation Amid Cost Pressures
India's Real Estate Sector Embraces Digital Transformation

India's real estate sector is increasingly adopting digital and data-driven technologies across the value chain as developers respond to rising cost pressures, stricter regulatory compliance, and changing consumer expectations, according to a joint report by FICCI and KPMG cited by PTI.

Report Highlights Technology as Core Operating Layer

The report, titled 'Reimagining India's real estate landscape — The role of technology in value chain transformation', was released on Thursday at a real estate summit organized by FICCI. It notes that the industry, long characterized by fragmented workflows, paper-based processes, and limited visibility across stakeholders, is now increasingly adopting digital and data-driven tools across the value chain.

India's real estate industry is undergoing a structural transformation in the way projects are planned, executed, marketed, and managed. 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.

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Key Drivers of Technology Adoption

FICCI and KPMG identified key drivers behind the accelerated adoption of technology in the sector. These include cost efficiency requirements, tighter regulatory and compliance expectations, increased institutional investment participation, and more digitally aware homebuyers. These forces are pushing developers to move away from manual, reactive processes towards scalable, proactive digital solutions.

Market Growth and Investment Trends

Citing industry estimates, the report states that India's real estate market, currently valued at around $650 billion in 2025, is projected to grow to $5.8 trillion by 2047. It also highlights that more than $16 billion has been unlocked through Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), reflecting a shift towards more transparent and institutionally managed platforms.

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