KPMG Report Highlights AI as Key to Faster Energy Efficiency in Real Estate

KPMG has released a report highlighting the potential of artificial intelligence (AI) in improving energy efficiency and management in real estate. The report suggests that traditional retrofits are too slow and costly to achieve the scale of reductions needed to meet net-zero goals by 2050. Instead, AI can be a faster and more effective route when combined with the Strategic Energy Management (SEM) framework. Exergies, a company that developed an AI-based tool for energy efficiency in commercial buildings, supports this view, stating that AI is already helping buildings cut waste by 20-30% in their projects, regardless of the climate or property age The report suggests.

That SEM should track how buildings use energy and assign clear responsibility for fixing problems. When used with AI, SEM can lead to around 20%-30% state energy efficiency experts Artificial Intelligence (AI) is rapidly transforming the global real estate industry, and the latest KPMG report has brought this reality into sharper focus by highlighting AI as the key driver for achieving faster energy efficiency in both commercial and residential properties. As buildings account for nearly 40% of global energy use, the real estate sector stands at the forefront of sustainability challenges. The KPMG report underscores that integrating AI-driven systems into property.

Management can significantly cut down energy wastage, reduce operational costs, and help companies meet sustainability benchmarks that are increasingly demanded by both investors and regulators. This narrative is particularly relevant to India, where real estate is undergoing a wave of modernization fuelled by smart cities projects, growing ESG obligations, and a market shift toward green-certified developments The role of AI in real estate efficiency is multi-layered, encompassing everything from predictive maintenance to automated building controls. For instance, AI-enabled platforms can track real-time energy usage patterns and make instant adjustments.

To systems like HVAC, lighting, and water management. This not only ensures optimal energy consumption but also creates a comfortable environment for occupants. According to the KPMG findings, AI-powered buildings can reduce electricity consumption by as much as 30% compared to conventional ones, a figure that could reshape the financial strategies of developers and investors. Readers who want to understand how these practices are being embraced in India can refer to insights on where sustainable building designs are increasingly integrated into new projects Another major aspect of AI adoption in real estate is the rise of smart buildings These facilities are equipped with IoT.

rapidly urbanizing cities like Bengaluru

Devices, cloud-based platforms, and machine learning algorithms that continuously monitor building operations. For example, AI can predict when an air conditioning unit is likely to fail and initiate repairs before it disrupts operations, reducing maintenance costs. In rapidly urbanizing cities like Bengaluru and Gurugram, developers are piloting AI-driven building solutions to attract corporate tenants who prioritize sustainability and lower operating expenses. Globally, organizations such as the outlined best practices for AI integration in the energy sector, and Indian developers are aligning with these guidelines to remain competitive. On our platform, we have also covered similar.

Sustainability transitions in, which illustrates how industries are rethinking resource efficiency Financial performance is another strong driver for AI adoption. Beyond environmental benefits, the KPMG report highlights how AI creates measurable ROI for building owners. By lowering energy bills, reducing downtime, and extending the lifespan of infrastructure, AI systems appeal to both investors and occupiers. The savings generated also allow companies to reinvest in further sustainability initiatives, creating a positive cycle of innovation and growth. For a comparative perspective, it is worth exploring how initiatives such as are reshaping real estate markets by integrating.

Technology and sustainability to meet the expectations of younger investors and homeowners The integration of AI in real estate also extends to Environmental, Social, and Governance (ESG) reporting, an area that has gained immense importance among global investors. Regulators and stakeholders now demand greater transparency in sustainability data, and AI is making this possible by providing precise, real-time analytics. According to KPMG, properties using AI-enabled monitoring systems have an advantage in tracking carbon footprints, reporting energy savings, and meeting government mandates. This is particularly relevant in India, where the (Smart Cities) has already introduced.

Policy frameworks for sustainable infrastructure. Within the private sector, ESG-aligned projects are becoming attractive investment avenues, as we previously observed in our coverage of, which showcased industry-wide moves toward sustainable governance practices Looking ahead, the future of AI in Indian real estate appears highly promising. Between 2025 and 2030, the report predicts a surge in AI-based property solutions across major cities, driven by both policy support and market demand. Gurugram, Pune, and Hyderabad are expected to lead this adoption, with large-scale commercial hubs integrating AI platforms for energy efficiency and tenant management.

This development aligns with the growing popularity of green-certified projects in India, where developers increasingly seek LEED and IGBC accreditations. To understand how India fits into the global sustainability agenda, readers can explore resources such as which provides guidelines and certifications for eco-friendly construction. Our earlier feature on also highlighted how infrastructure projects are integrating sustainability features to future-proof their utility While opportunities abound, the KPMG report also notes certain challenges. Initial investment costs for AI-enabled systems can be high, particularly for mid-size developers. There is also a need for specialized skill sets to.

Manage AI platforms, which requires training and capacity building. However, long-term benefits in terms of energy savings, reduced carbon footprints, and enhanced market competitiveness far outweigh these hurdles. The report suggests that collaborations between technology providers, real estate developers, and policymakers will be essential to accelerate AI adoption in the sector. Similar lessons can be drawn from international markets, where AI and proptech collaborations have already revolutionized real estate practices, particularly in Europe and North America the KPMG report positions AI as the cornerstone of energy-efficient real estate, offering both environmental.

And financial advantages. By automating energy use, enabling smart buildings, supporting ESG reporting, and future-proofing investments, AI has the potential to redefine property management and development in India and beyond. For developers, investors, and policymakers, this presents a clear call to action: embrace AI today to lead the sustainable real estate markets of tomorrow. The integration of AI is no longer an option but a necessity, ensuring that the sector not only reduces its ecological impact but also aligns with global economic and climate goals. For continued insights on these trends, readers can follow our coverage of (Global Proptech Innovations), where we track how technology and sustainability are converging to build the cities of the future.