Construction tech adoption lags in Indian real estate amid cost hurdles

Despite availability of BIM, modular, and 3D technologies, Indian construction firms remain hesitant due to cost, labour economics, and limited developer scale

Even as sectors across India embrace technological transformation, the construction side of the real estate industry continues to trail global trends. While technologies like Building Information Modelling (BIM), 3D printing, drone surveillance, and IoT-enabled smart building systems are increasingly common overseas, their adoption in Indian construction remains limited and largely experimental, developers said.

 

Boman Irani, chairman and managing director, Keystone Realtors (Rustomjee Group), said: “With Building Information Modelling (BIM), 3D is already there, which saves time and cost. All of this put together is a sign of the future, but it has still not hit majorly. When 3D printing came into play, we thought it was going to be the change the industry needed. But really, it hasn’t done much. They say that one can do up to seven floors with that technology. But in terms of the cost, it’s much higher today.”

 

Green building technologies, while showing growth, still account for less than 5 per cent of India’s construction activity, said Dr Prashant Thakur, regional director & head, Research & Advisory, Anarock group.

 

Modular methods and prefabricated construction techniques, widely adopted in countries like Singapore, Germany, Sweden, and China, remain niche in India. Stakeholders cite challenges including the availability of cheap traditional labour, lack of skilled manpower, long project gestation periods, and high upfront capital requirements. 

 

Cyrus Mody, founder and CEO, Viceroy Properties, believes that not all modern techniques are feasible in dense, high-rise urban markets like Mumbai.

 

“If I were talking about a 500-acre industrial township somewhere in Gujarat, then we could have a chat about that. No matter how much technology one invests in, one should not go below a certain time limit.”

 

Priyesh Chheda, founder, Arbour Investments, said the biggest deterrent remains the cost. “The moment one starts implementing these new-age technologies, the cost goes up. And when the cost goes up, the velocity takes a dip. There is a certain break-even point beyond which a developer cannot sell.”

 

Aakash Agarwal, managing director, Krisala Developers, echoed similar sentiment: “For small builders, the usage of technology is costly because the capital expenditure is higher.”

 

BK Malagi, vice-chairman, Experion Developers, added: “Many times, theoretical things won't translate into practical. And the bad effect you come to know after a few years. According to me, the technology, whatever is available, can be used with a cost difference of 5–10 per cent.” 

 

Despite the hesitation among smaller players, larger developers are beginning to incorporate more advanced methods.

 

“From prefabricated construction methods to advanced techniques like Mivan shuttering and BIM, branded developers are increasingly embracing these technologies to streamline construction processes, reduce costs, and deliver projects on time,” said Lalit Aggarwal, co-founder & vice-chairman, Signature Global (India).

 

Shrinivas Rao, CEO, Vestian, said India remains in the early stages of a broader transition. “Compared to countries like Germany or even the US, we are still far behind in fully embracing construction tech.”

 

Developers remain optimistic that things are gradually changing, especially with rising institutional interest, better access to capital, and an increased focus on R&D.

 

The expectation is that as the real estate sector consolidates and more branded players dominate the landscape, technological adoption, once hindered by high upfront cost, and slow return on investment may finally gain momentum. 

Building through tech 

• Technologies like BIM, 3D printing, Mivan shuttering, precast, aluform, tunnel form, among others is available
• Lower penetration due to higher capex requirements, lack of skilled labour, long gestation period of real estate projects, and availability of traditional cheap labour
• Consolidation of sector, more institutional investors, and greater availability of capital expected to lift tech utilisation