A report by GRI Institute reveals 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.
The report mentions that the sharp increase in adoption has largely been driven by growing institutional investment, tighter regulatory oversight and demand for data-based decision-making across the real estate market.
The sector is becoming attractive for investors as the institutional investment in Indian real estate reached $1.7bn in Q1 2026, whereas equity inflows into the sector accumulated to $30.7bn between 2024 and Q1 2026 – an 88% increase from 2022 to 2023.
One of the most notable applications of AI is in construction finance and project monitoring. Institutional lenders and escrow managers are utilising computer vision and satellite imagery to independently check construction progress and contrast it with fund disbursement schedules.
AI-based monitoring systems are assisting investors to identify discrepancies between reported and actual project progress, reducing dependence on manual inspections.
The GRI Institute report also added that regulatory reforms, including the Reserve Bank of India’s Project Finance Directions 2025, are encouraging developers to use technology-driven compliance and governance practices.
AI is increasingly being adopted in property valuation and land acquisition. Automated valuation models (AVMs) use transaction data, geospatial information and demographic trends to predict property values, while estimative 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.”
GRI Institute’s report
Another growing aspect is AI-driven deal flow matching, where algorithms link investors and developers based on investment mandates, risk appetite and geographic preferences. The GRI Institute report mentions these systems are assisting a reduction in friction in capital allocation and improving 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.”
Iesh Dixit, Co-Founder & CEO, Powerplay
The increasing use of AI is also creating a divide within the industry. The report cites developers with strong digital infrastructure and transparent reporting systems are attracting a larger share of institutional capital, whereas traditional operators face challenges in accessing funding.
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