AI cuts construction costs 20-25% and timelines 40-50%, making homes more affordable

AI is compressing cost and time in real estate construction

Artificial intelligence is moving from pilot to practice in Indian real estate. "The use of Artificial Intelligence in real estate will transform the way projects are executed," said Boman Irani, chairman of Credai, on the sidelines of CREDAI NATCON 2025 in Singapore. "AI enables us to improve efficiency, cut costs, and accelerate timelines by reducing delays and wastage."

As models mature and adoption scales, Irani expects the economics to shift. Savings can be passed on to buyers, bringing down prices and improving delivery certainty.

Putting numbers to that claim, Jay Shah, founder of Kaizen AI, said AI can cut construction costs by 20-25% and shorten timelines by 40-50% for high rises, while reducing delays and wastage.

Design optimisation that pays for itself

Leaders at the event outlined how AI-driven optimisation is reshaping planning and execution. Systems simulate thousands of design scenarios across structure, MEP, parking, loading, and excavation to converge on the most feasible blueprint.

"We took inputs like basic drawings and project plans, ran numerous iterations through AI, and were able to get the design outcomes within seven days. In the process, we managed to maximise structural efficiency and maximise parking capacity," Shah said.

Real examples from live projects

• More usable area: In one development, AI-led design changes increased apartment carpet area by over 1 lakh sq ft without expanding the permissible built-up.
• Faster luxury delivery: For Marriott Executive Apartments in Navi Mumbai, AI optimisation helped reduce the construction timeline from five years to three.

High-rise feasibility: numbers that change decisions

For an ongoing ~300-meter project near Mahalaxmi Race Course in Mumbai, the first AI-generated option demanded 29.1 lakh sq. ft. of constructed area (loading 3.12) and 18 meters of hard-rock excavation near the sea-adding nearly two years just to reach ground level.

A second option, with 37% mechanical parking, cut the constructed area to 26.26 lakh sq. ft. (loading 2.82) and reduced excavation to 10 meters, limiting delays to about one year. Same plot. Same regulations. Smarter parameters.

Unsticking brownfield projects

Stalled projects often sit in a bind: no room to expand and FSI norms changed since approval. "By applying AI-based optimization, we can reconfigure the design within existing constraints, making the development profitable for the developer by an average of 10% margin, while ensuring long-delayed homes are finally delivered to homebuyers," Shah said. More such projects are in discussion.

What this means for developers, contractors, and IT teams

• Centralise data: BIM models, 4D/5D schedules, geotech, utility maps, vendor constraints, and regulatory rules need to live in one accessible system.
• Run constraint-based simulations: Optimise for structural efficiency, RERA carpet ratio, parking mix (conventional vs. mechanical), MEP routing, and excavation depth to shorten the critical path.
• Integrate with delivery tools: Connect optimisation outputs to project management, procurement, and site scheduling so decisions flow into execution.
• Codify guardrails: Local codes, safety standards, and environmental constraints should be treated as hard rules inside the optimisation loop.
• Pilot with clear KPIs: Track cost variance, time to podium, excavation duration, rework rates, and usable-area gains. Scale only after hitting thresholds.
• Upskill teams: Train PMs, BIM modellers, and data engineers to prepare inputs, interpret outputs, and run iterations quickly.

Why this matters for homebuyers

Better design choices at the start cut waste, rework, and excavation delays. That shortens timelines and reduces financing and holding costs. Developers can pass a portion of those savings on, improving affordability without compromising quality.

Event context

The Confederation of Real Estate Developers' Associations of India (CREDAI) hosted the 23rd edition of its flagship event, CREDAI NATCON 2025, in Singapore from September 11-13, 2025. Learn more about the association at CREDAI.

Next step: build in-house capability

If your team is preparing to integrate AI into design and delivery workflows, structured training helps cut experimentation time. Explore role-based programs here: AI courses by job.