AI adoption in Indian real estate jumps to 91% as investors push for data-driven decisions
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India's corporate real estate sector is witnessing a rapid shift towards artificial intelligence (AI), with adoption levels rising from less than 5% in 2023 to 91% in 2025, according to a report by GRI Institute.
The report said the sharp increase in adoption is being driven by growing institutional investment, tighter regulatory oversight and the need for data-based decision-making across the property market.
"AI adoption in Indian corporate real estate surged to 91% in 2025, up from less than 5% in 2023," the report said, describing the trend as a "structural inflection point rather than a cyclical experiment."
AI adoption accelerates with institutional capital inflows
The sector is attracting increasing investor interest. According to the report, institutional investment in Indian real estate reached $1.7 billion in the first quarter of 2026, while equity inflows into the sector touched $30.7 billion between 2024 and Q1 2026, marking an 88% increase from 2022-23 levels.
One of the most prominent applications of AI is in construction finance and project monitoring. Institutional lenders and escrow managers are using computer vision and satellite imagery to independently verify construction progress and compare it with fund disbursement schedules.
"The objective is precise: prevent escrow leakage," the report noted. AI-based monitoring systems are helping investors identify discrepancies between reported and actual project progress, reducing dependence on manual inspections.
The report added that regulatory reforms, including the Reserve Bank of India's Project Finance Directions 2025, are encouraging developers to adopt technology-driven compliance and governance practices.
Technology reshapes valuation, land acquisition and funding access
AI is also gaining traction in property valuation and land acquisition. Automated valuation models (AVMs) use transaction data, geospatial information and demographic trends to estimate property values, while predictive analytics helps identify suitable land parcels for future development.
"For institutional investors evaluating greenfield opportunities across India's expanding urban corridors, predictive land analytics compress the due diligence timeline and surface opportunities that traditional broker networks may not capture," the report said.
Another growing use case is AI-driven deal flow matching, where algorithms connect investors and developers based on investment mandates, risk appetite and geographic preferences. The report said these systems are helping reduce friction in capital allocation and improve market efficiency.
“This is creating a structural shift across the industry. The companies that can provide clean, auditable operational data will increasingly find themselves better positioned to access institutional funding, while those operating on fragmented systems may find it harder to meet evolving lender expectations,” said Iesh Dixit, Co-Founder & CEO at Powerplay.
However, the increasing use of AI is also creating a divide within the industry. According to the report, developers with strong digital infrastructure and transparent reporting systems are attracting a larger share of institutional capital, while traditional operators face challenges in accessing funding.
"The technology adoption gap is, in practice, a capital access gap," the report said.
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