Emerging Construction Technologies & Systems in Indian Real Estate: CRISIL

Jagannarayan Padmanabhan, Senior Director & Global Head and Phani Mandalaparthy, Associate Director, Transport, Logistics and Mobility, Consulting, CRISIL Market Intelligence and Analytics.

Introduction

The Indian real estate sector is set to grow substantially driven by rising demand for residential housing and a favourable business environment. However, the surge in demand brings with it a set of challenges - the biggest being delivery of high-quality projects on time while remaining accountable to customers. To navigate emerging challenges, the industry is increasingly turning towards innovative construction systems that promise efficiency and reliability. It is important to select an appropriate construction system to ensure cost-effective and timely delivery of projects, particularly in a rising demand environment.

With the country’s population expected to reach 1.7 billion by 2047, urban housing demand is projected to reach 230 million units. The urban residential demand^ is expected to grow 10-12% this fiscal and 50585-10% next fiscal. On the commercial front, the rise of IT and global technological companies has bolstered demand for office space, projected to reach 2.7 billion sq ft by 2034. Policies such as the Startup India Action Plan and Digital India are expected to give a further fillip to the demand. Growing institutional investments and the rise of small and medium developers are also influencing the sector’s growth. Furthermore, the establishment of the Real Estate Regulatory Authorities (RERA) by states has nudged developers to be more accountable to customers.

In this context, innovation in building construction has attained much significance. Commissioning of quality projects on time impacts not only the real estate developers’ reputation and their customers but also the delivery of social commitments made by the government such as housing for all. Selecting and implementing the appropriate construction system (in essence the method of casting of structural elements in building projects) is, therefore, a crucial step for all project stakeholders — the authorities, developers and contractors.

Figure 1: Indian residential housing demand

Conventional construction systems

Traditionally, the construction systems for a housing or commercial project rely heavily on traditional materials, including burnt clay bricks, cement, sand, aggregates and wooden formworks among others. They are often characterised by on-site labour-intensive activities. These systems are usually divided into two main categories:

Load bearing structures: These are buildings where the walls (made of either brick or concrete masonry) support the entire load of the building and transmit them to the foundations. The weight and loads on the structure above pass through the walls onto the footings that are constructed deep below the excavated ground.

Framed structures: These use a skeletal frame of reinforced cement concrete (RCC) or steel beams and columns to support the building loads from the upper floors and transfer them to the foundations. In such structures, the walls only play the role of partitioning the spaces into rooms or areas and not for load transfer.

Figure 2: Broad categories of modern construction systems

Challenges in conventional systems

However, while used in the construction of multi-storied or high-rise structures (defined as those taller than four stories and/or 15 meters in height as per the byelaws of the MoHUA ), the conventional systems have the following limitations:

• Not sustainable: Conventional methods predominantly rely on non-renewable materials which leave a significant carbon footprint during their extraction and use.
• Lengthier timelines: Conventional construction systems involve large on-site work for material handling, shifting and fabrications, often leading to longer construction times.
• Wastage: Wastage of construction materials is common for in-situ work owing to inefficiencies associated with manual activities and lack of controlled environment.
• Labor intensive: Manual work further requires a large workforce — both skilled and unskilled — to be deployed at sites. Managing and maintaining a such a large workforce can be challenging. It is also difficult to ensure their health and safety.

Given these constraints, there is a growing demand for innovative, non-traditional construction systems.

Modern construction systems

Adoption of innovative construction methods and judicious use of traditional materials will help the developers meet the demand for higher productivity, address the shortage of skilled labour, meet the higher quality expectations from clients and customers and reduce construction cycle times. The modern systems discussed in the subsequent sections optimise material usage through design innovations and enhance overall efficiency.

In-situ construction systems

Engineered formwork

Engineered formwork systems, also known as modular formwork systems, are systems that usually facilitate monolithic construction (single, contiguous element) where walls, slabs and openings (doors, windows, etc.) are constructed cast in a single pour of concrete using custom-designed formwork made of aluminum, plastics, steel or composite materials.

Aluminum formwork

Aluminum formwork is utilised in monolithic concrete construction, comprising panels made from high-strength aluminum alloy. The lightweight nature of the system eliminates the need for cranes, allowing individual workers to handle the formwork elements. This technology has been widely used in various countries and has also gained popularity in India. It is particularly useful for constructing numerous repetitive units at a faster pace with an approximate slab cycle of 7-10 days. These formworks can be used for multiple repetitions (re-fixing and re-use) — usually about 250 repetitions. However, there are several key benefits compared with the conventional system as well as limitations.

Benefits

• Enables rapid construction, expediting completion by 10-25%
• Results in 15% cost savings owing to repetitive units and economies of scale
• Ensures high-quality construction, potentially eliminating the need for plaster
• Improves seismic resistance with monolithic construction
• Increases usable space owing to thinner walls and shear-wall construction
• Reduces reliance on manual labour
• Allows installation by semi-skilled or unskilled workers without heavy machinery

Limitations

• Reduced insulation and acoustic properties owing to thinner walls and RCC construction
• High upfront cost; economically unviable for non-repetitive units
• Services must be planned, making later alterations difficult
• Restricted span lengths
• Handling numerous formwork components is difficult.

Reference project applications

• The Andhra Pradesh Township and Infrastructure Development Corporation (APTIDCO) – Economically Weaker Section (EWS) Housing in West Godavari (2019): L&T Construction adopted the monolithic shear wall system using aluminum formwork, to construct more than 20,000 units with a total built-up area exceeding 7.5 million sq ft.
• Mahendra Aarya Project in Electronic City, Bengaluru (2023): 662 premium flats were constructed by Mahendra Homes using aluminum formwork.

Key manufacturers of aluminum formwork in India

• Maini Scaffolds and Formwork Systems Pvt Ltd
• Technocraft Industries (India) Ltd
• Knest Manufacturers LLP
• Winntus Formwork Pvt Ltd
• PERI India Pvt Ltd
• S-form India Pvt Ltd

Tunnel formwork

Tunnel formwork is a system used for monolithic concrete construction that involves using half units in the shape of inverted ‘L’s that join at the top to form a tunnel shape. Equipped with wheels and jacks, the formwork can be easily moved and positioned, with adjustable height to suit specific needs. This formwork system has been reported to facilitate as many as 500 repetitions. However, there are several key benefits compared with the conventional system as well as limitations.

Benefits

• Suitable and up to 40% cost-effective for repetitive units
• Provides a good concrete finish, eliminating the need for plastering
• Improves seismic resistance with monolithic construction
• Allows the formwork to be reused many times
• Increases carpet area owing to thinner walls

Limitations

• Limited design freedom as the building layout must conform to a box-type structure
• MEP services must be pre-planned and placed before casting concrete
• Post-construction changes are not feasible
• Reduced thermal insulation and acoustic properties because of thinner RCC walls
• Formwork dimensions constraints limit the span lengths.

Reference project applications:

• Ananta by Omkar, Mumbai (2017): Omkar Realtors deployed the tunnel formwork system to construct a 31-floor residential tower in one-and-a-half years, making it the fastest conduction of this scale in Mumbai.
• A residential building, Rajkot (2022): 1,144 flats were constructed using the tunnel formwork system under the Global Housing Technology Challenge (India) to demonstrate the emerging construction systems.

Key manufacturers of tunnel formwork in India

• Doka India Pvt Ltd
• Technocraft Industries (India) Ltd
• Outinord Formworks Pvt Ltd

Climbing formwork

Climbing formwork, also known as jump form, is a specialised form of concrete formwork used in the construction of skyscrapers and other tall structures. It consists of a system of platforms, formwork panels, and climbing mechanisms that allow the formwork to jump or climb to the next level once the concrete below has been set. This method is particularly useful for vertical concrete components of the building such as shear walls, core walls, lift shafts, and stair shafts. However, there are several key benefits compared with the conventional system as well as limitations.

• It is highly efficient, reducing floor cycle time and speeding up construction
• Provides a safe working environment with integrated platforms
• Produces uniform, high-quality finishes
• Reduces scaffolding needs and associated labour costs
• Minimises crane dependency after initial setup

Limitations

• High initial setup and investment costs
• Requires skilled labour and precise planning
• Less adaptable to irregular shapes or complex geometries
• Time-consuming initial setup
• Weather conditions can impact the climbing process and safety

Reference project applications:

• Piramal Aranya in Mumbai (2021): L&T Construction adopted the auto climbing formwork system by Doka Lubeca for the construction of the 70+ floors residential tower.
• Omkar 1973 in Mumbai (2024): The 11th tallest building in India, being developed by Omkar Realtors, is using the self-climbing formwork to construct the 73+ floors residential towers having 400+ Sky bungalows.

Key manufacturers of climbing formwork in India

• Doka India Pvt Ltd
• PERI India Pvt Ltd
• RMD Kwikform India Pvt Ltd

IS 14687: 1999 - Falsework for Concrete Structures – Guidelines set the standards for conventional formwork systems in India. However, there are no specific guidelines for modular formworks or climbing formwork. Globally, a few codes include modern formwork systems as well (for instance, Australia’s Formwork Code of Practice: 2021).

Sacrificial formwork systems

Sacrificial formwork systems, also known as stay-in-place (SIP) formwork, remain in the structure after the concrete is poured and cured, adding strength and support. This formwork is made from materials such as PVC, expanded polystyrene (EPS) blocks, ferrocement board sheets, glass fiber-reinforced gypsum sheets or metal rib-mesh filtering grids and is used in walls, slabs and other structures. However, there are several key benefits compared with the conventional system as well as limitations.

Benefits

• Eliminates the need for brickwork and external plastering thereby reducing material and labour costs.
• Provides approximately 10% cost savings and 35% time savings
• Allows flexible design options, no de-shuttering needed, resulting in quicker construction
• Reduces labour overheads and the need for skilled labour
• Provides better thermal and acoustic insulation

Limitations

• Walls need pre-planned and installed MEP services for the concealed network
• Door and window openings need to be pre-planned before execution
• Special care needed during concrete pouring
• Concrete spilled over the PVC panels can be difficult to remove.

Reference project applications

• Mahindra Happinest, Mumbai (2021): Mahindra Lifespace Developers Ltd. (MLDL) adopted Kalzen Realty’s SIP formwork system for the construction of its residential project in Palghar, Mumbai.
• A mass housing project, Lucknow (2024): 1040 flats were constructed using PVC SIP formworks under the Global Housing Technology Challenge (India) to demonstrate the emerging construction systems.

Key manufacturers of sacrificial formwork in India

• Coffor Construction Technology Pvt Ltd
• Novel Assembler Pvt Ltd
• Kalzen Realty Pvt Ltd
• Reliable Insupack Building Solutions

3D concrete printing

3D concrete printing system builds concrete structures by employing a computer-guided robotic printer to apply a specially designed rapid hardening concrete mix layer by layer based on a 3D CAD design. This system works with minimal human involvement, removing the need for conventional formworks for wall construction. The process employs a unique blend of materials, including cement, fly ash, micro silica and chemical admixture among others. Being an emerging technology, the system has limited codes of practice or standards available. Globally, the Appendix AW of 2021 International Residential Code (IRC) has given the guidelines for design, construction and inspection of 3D buildings. However, there are several key benefits compared with the conventional system as well as limitations.

Benefits

• It reduces construction time with faster building processes and continuous operation
• Allows design flexibility to create complex geometry and customizable structures
• Promotes sustainability with efficient material use and reduced waste
• Enhances safety with requirement for fewer on-site workers and reduced risk in hazardous environments

Limitations

• Material limitations, inconsistent strength, less durability and varying material properties
• Scale and size constraints owing to equipment size limits
• Transportation challenges for moving equipment
• Requires high initial investment for expensive equipment and ongoing technology development costs
• Regulatory and standardisation issues, as limited codes are available

Reference project applications

• A residential house at IIT Madras (2021): Indian Startup Tvasta Manufacturing built a 500 sq. ft house in 21 days using concrete 3D printing technology.
• Post office building in Bengaluru (2023): L&T Construction using COBOD's construction printer constructed a 1,021 sq ft post office building. The project was completed in 43 days, achieving an 80% reduction in time and a 40% reduction in cost compared with conventional construction methods.

Key players in India

• L&T Construction Ltd
• Tvasta Manufacturing Solutions Pvt Ltd
• MiCoB Pvt Ltd

Precast / prefabricated construction systems

Sandwich panel system

Sandwich panel is an innovative construction method that replaces traditional brick and mortar walls, enhancing construction speed and efficiency. These panels are composed of three layers: a lightweight core ensuring insulation sandwiched between two outer layers usually made up of rigid materials like fiberglass reinforced plastic, steel, cement boards etc. The core material could be polyurethane, polyisocyanurate, expanded polystyrene, light weight concrete etc.

EPS-based panels, lightweight concrete, and polyurethane enhance thermal efficiency, supporting energy conservation. The incorporation of materials such as fly ash and EPS beads further reduces the use of natural resources. However, there are several key benefits compared with the conventional system as well as limitations.

Benefits

• Enables quick installation and ease of handling, saving construction time by up to 30%
• Requires limited scaffolding due to crane assembly
• Provides better thermal and acoustic insulation
• Resistant to aggressive environments, ensuring long life and low maintenance costs
• Easy to repair and replace in case of damage

Limitations

• Limited applications for load bearing structures.
• Prolonged exposure to direct sunlight may deteriorate the polyurethane core, affecting the panel’s insulation properties.
• Poses transportation and handling challenges
• Availability of manufacturers near project sites is crucial for small-scale projects

Reference project applications

• Residential building, Indore, 2023: 1,024 flats were constructed with sandwich panels as infill walls under the Global Housing Technology Challenge (India) to demonstrate emerging construction systems
• Hotel Atrio, New Delhi: The luxury hotel was constructed using EPS sandwich panels supplied by Rising Japan Infra Pvt Ltd

Key manufacturers of sandwich panels in India

• Bhargav Infrastructure Pvt Ltd
• Rising Japan Infra Pvt Ltd
• Bau Panel Systems India Pvt Ltd

Precast concrete construction system

The system involves manufacturing concrete elements offsite and transporting and assembling them onsite. It offers efficiency, quality control, and versatility in construction. In India, precast concrete construction systems are governed by “IS 15916: 2020: Building Design and Erection Using Prefabricated Concrete - Code of Practice (First Revision)”. These systems can be classified under two major categories:

2D precast system

In this method, individual precast components such as panels, beams, columns, and slabs are manufactured in a factory according to standardized dimensions and shapes in a controlled environment to ensure high quality and precision. The components are then transported to the construction site and assembled using cranes. The components are connected using onsite concreting, along with embedded reinforcement, which provides a resilient, ductile, and durable structure. However, there are several key benefits compared with the conventional system as well as limitations.

Benefits

• Ensures consistency in strength with a controlled climate in factories
• Reduces labour and costs with assembly line manufacturing
• Offers a wide range of finishes and architectural elements
• Provides fixed pricing and accurate budgeting with mass production using standard forms
• Simplifies scheduling by eliminating onsite formwork and logistical concerns
• Reduces material waste and supports recyclability

Limitations

• Requires a high initial investment for putting in place a factory setup and generating economies of scale
• Incurs additional costs from excise and value-added tax
• Altering designs could be challenging
• Requires large equipment and stockyards
• Poses transportation challenges over long distances
• Complicated integration of mechanical, electrical, and plumbing (MEP) services

Reference project applications

• The Sobha Dream Acres Housing Project, 2021: Located in Balagere near Bangalore, the project is India's first construction endeavor to fully utilise precast technology
• Mass Housing Project, Chennai, 2024: 1,152 flats were constructed using precast concrete components including columns, beams and slabs under the Global Housing Technology Challenge (India) to demonstrate emerging construction systems

Key players in India

• Larsen & Toubro Ltd
• BG Shirke Construction Technology Pvt Ltd
• Precast India Infrastructures Pvt Ltd

3D volumetric precast (modular) construction system

The volumetric precast construction approach involves casting entire rooms or modules using steel moulds in a controlled environment, complete with pre-installed MEP services. The modules are then transported to the site and assembled, eliminating the need for plastering and significantly reducing onsite pollution and debris. This method enhances safety of personnel and equipment, ensuring that the final product meets the highest standards of quality and structural integrity. However, there are several key benefits compared with the conventional system as well as limitations.

Benefits

• Speeds up construction with offsite manufacturing and quick onsite assembly
• Improves structural integrity due to fewer joints
• Enhances quality control with factory production
• Increases labour efficiency by reducing the need for onsite skilled workers
• Enhances safety by minimising high-risk activities onsite
• Allows construction progress regardless of weather conditions

Limitations

• Requires high initial costs for manufacturing facilities and moulds
• Faces transportation challenges for moving large, heavy modules
• Requires precise upfront planning due to design constraints
• Requires complex coordination for integrating building services within modules
• Restricted site access or space for areas with limited access

Reference project applications

• L&T "Mission 96", 2022: L&T Construction completed a 12-story residential tower with 96 flats, encompassing a built-up area of 64,000 sq. ft., in a record 96 days. The project achieved a floor construction cycle of three days with modular precast concrete construction technology
• Mass Housing Project, Ranchi, 2024: 1,008 flats were constructed using 3D precast (volumetric construction) under the Global Housing Technology Challenge (India) to demonstrate emerging construction systems

Key players in India

• Moducast Pvt Ltd
• Magicrete Building Solutions
• Ultratech Cement Ltd

Comparison

Various construction systems have been evaluated based on key parameters to guide the reader on the fitment of each system in real estate scenarios and highlight their differences.

Note:

• The comparison is for reference only; the actual choice of construction system will depend upon factors such as structural design, geography, atmospheric conditions, vendor availability, trained workforce availability and other relevant parameters.
• The comparison pertains to load-bearing structures constructed using the respective construction systems
• Ease of construction refers to ease during manufacturing, transportation, and erection of individual components, while speed of construction refers to speed during onsite works.
• Building classification: Low-rise buildings – up to 3 floors, mid-rise buildings – 4 to 7 floors, high-rise buildings – 8 floors and above.
• MCEF- Monolithic construction using engineered formwork

Industry outlook

India's construction industry is witnessing rapid growth, with the real estate sector projected to grow to $5.8 trillion and account for 15.5% of the total economic output by 2047 led by several key government initiatives and policy reforms:

Pradhan Mantri Awas Yojana-Urban (PMAY-U): Over 1.2 crore houses have been sanctioned, fostering affordable urban housing. The PMAY-(U) Credit Linked Subsidy Scheme (CLSS), which offers interest subsidies on home loans, has benefited over 21.1 lakh households, significantly driving demand.

Financial support for affordable housing projects:

• Affordable Housing Fund (AHF), 2018: Provides financial support for low-income housing projects
• Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund, 2019: Funds stressed and stalled affordable housing projects
• Policy reforms
  • The Real Estate (Regulation and Development) Act, 2016, Goods and Services Tax Act, 2017, and Insolvency and Bankruptcy Code, 2016, have increased transparency and boosted investor confidence
  • Furthermore, allowing 100% foreign direct investment (FDI) through the automatic route in construction development projects has bolstered growth. India continues to attract substantial FDI, with $528.61 billion flowing into the construction development sector from April 2000 to March 2024.

This growth is reflected across emerging construction technology segments as well:

A few noteworthy projects

Precast concrete construction: Valued at $6.16 billion in 2023, the Indian precast concrete market is expected to grow at a CAGR of 9.2% over 2024 to 2030. The structural building components segment which includes floor and slab panels, beams, coloumns etc. accounted for the largest revenue share in 2023 among different precast concrete products and is projected to maintain its leading position .

Aluminum formwork systems: The market, valued at $538.5 million in 2022, is projected to grow to $733.9 million by 2028, at a CAGR of 5.3%, indicating the growing preference for aluminum formwork due to its efficiency and quality benefits .

Prefabricated sandwich panels: The global sandwich panel market, valued at $1.8 billion in 2022, is forecast to grow from $1.95 billion in 2023 to $3.86 billion by 2032, at a CAGR of 85%. In India, the market trend aligns with global growth, although specific local data is limited.

3D concrete printing: The global 3D concrete printing market, valued at $169.4 million in 2022, is anticipated to surge from $342.02 million in 2023 to $94.44 billion by 2031, at a CAGR of 101.9% . In India, the segment is gaining traction with startups such as Tvasta Manufacturing and MICoB Private Ltd, along with major players such as Sika and L&T, contributing to its development.

India's increasing focus on sustainability through initiatives such as Green Rating for Integrated Habitat Assessment (GRIHA) and Leadership in Energy & Environmental Design (LEED) certification is also a significant driver of emerging construction systems. The recyclability of engineered formwork, especially aluminum formwork, the improved thermal and acoustic insulation of prefabricated sandwich panels, and the use of industrial gypsum waste in glass fibre reinforced gypsum (GFRG) panels and fly ash and other green materials in precast components contribute to sustainability by reducing wastage and enhancing resource efficiency.

Challenges: While the industry outlook seems positive for emerging construction systems, certain challenges mentioned below must be addressed to ensure sustainable growth and adoption of such systems.

• High initial costs: The adoption of advanced construction technologies involves substantial initial investments in equipment, materials, and training. Smaller contractors may find it challenging to bear these costs, which could slow down widespread adoption
• Logistical and transportation issues: The transport of large and heavy prefabricated elements or specialised equipment, such as 3D printers, could be problematic. The proximity of precast concrete factories or panel manufacturers to construction sites is crucial, as long transportation distances could significantly raise costs, potentially making the projects economically unfeasible
• Regulatory and standardisation hurdles: The lack of established regulatory standards and codes for emerging technologies such as 3D concrete printing can impede their adoption. Developing these standards is important to ensure the safety, quality, and reliability of structures built using these advanced methods
• Market adoption and perception: Gaining acceptance for new technologies in a traditionally conservative industry can be challenging. Demonstrating the long-term benefits and cost savings associated with advanced construction systems is essential for overcoming resistance and achieving widespread adoption

The Indian construction industry is poised for significant transformation, driven by robust growth in the real estate sector, supportive government initiatives, and substantial FDI. Emerging technologies such as precast concrete construction, and engineered formwork systems among others are playing a crucial role in this evolution.

Conclusion

The Indian real estate sector has been witnessing a paradigm shift in recent years, driven by the need for efficient, sustainable, and cost-effective construction methods. Conventional construction systems, based on traditional industry practices, are gradually giving way to modern construction systems that offer numerous benefits. This report delves deeply on emerging/modern construction systems in the Indian real estate sector.

The findings of this report underscore the significance of adopting modern construction systems in India. Conventional construction systems, despite their widespread use, are plagued by several limitations, including time-consuming processes, high labour costs and high material wastage. In contrast, modern construction systems offer a plethora of advantages, including reduced construction time, improved quality, durability, and enhanced safety. Moreover, these systems could support downstream industries (aluminium, gypsum, PVC, EPS, etc) and create employment opportunities.

However, these systems also face key hurdles such as high upfront costs, transportation challenges and resistance to change. Nevertheless, their benefits significantly outweigh the drawbacks, and domestic developers and the construction industry could embrace these technologies to meet growing demand, improve their financial health/profitability and safeguard themselves from regulatory and societal scrutiny and loss of reputation associated with project delays.

As demand for efficient, sustainable construction methods grows, key stakeholders including policymakers, developers and contractors should come together to devise strategies to promote modern construction systems through training programmes and government incentives and reduce the environmental impact of the real estate sector.