Real estate tech shift: Developers adopt digital tools amid rising costs, tighter compliance norms, says FICCI-KPMG

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; PTI reported citing joint report by FICCI and KPMG.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 organised by FICCI.“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,” the report said.It noted that 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,” the report added.FICCI and KPMG identified key drivers behind the accelerated adoption of technology in the sector, including 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,” the report said.Citing industry estimates, the report said 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 highlighted 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.