In the pulsating heart of India’s real estate market, a distinctive trend is reshaping the landscape – the surge in demand for sustainable luxury properties. This surge is not merely a market fluctuation; it’s a response to the conscientious desires of homebuyers, both domestic and international. In the wake of rising disposable incomes, an inclination towards opulent living, and the rapid urbanization of Indian cities, the Indian luxury real estate market is experiencing an unprecedented boom.
A report that stands testament to this growth is the India Luxury Real Estate Report 2023 by Knight Frank. According to this report, the number of ultra-high-net-worth individuals (UHNWIs) in India is poised to soar by an astonishing 63% within the next five years, reaching an impressive figure of 11,198 by 2025. This seismic shift presents a tantalizing potential for luxury real estate, especially in the apex cities of Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, and Pune.
Growing Demand for Sustainable Living
What sets this boom apart is the discernible rise in the demand for sustainable luxury properties. Prospective buyers are increasingly veering towards homes that are not only aesthetically opulent but also ecologically responsible. The data from a report by GlobalData underlines this shift. In 2021, the green building market in India was valued at a staggering $20,983 million, marking a compound annual growth rate (CAGR) of 7.2% from 2017 to 2021. The allure of sustainable living is not confined to Indian shores; globally, the interest in green building practices is evident. The Global Green Building Materials Market, estimated at USD 247.93 billion in 2023, is expected to reach USD 394.41 billion by 2028, reflecting a global shift towards eco-conscious living.
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Focus on Wellness and Sustainability
This paradigm shift in the real estate sector is not solely limited to bricks and mortar; it’s a holistic approach that encompasses the well-being of the inhabitants and the environment. Buyers now seek properties that offer a spectrum of wellness amenities and are meticulously designed to foster sustainable living. The Sustainable Real Estate: India’s Response to a Greener Future report by JLL underscores this growing sentiment. Among the occupiers surveyed, 7 in 10 have carbon emission targets as part of their corporate sustainability strategy. A similar proportion is willing to pay a premium for leasing green-certified buildings, indicating a market willing to invest in eco-friendly spaces.
The Characteristics of Sustainable Luxury Properties
But what truly defines these sustainable luxury properties? These are not just homes; they are conscientious sanctuaries designed with a singular focus on minimizing environmental impact and maximizing energy efficiency. For example, TARC Tripundra project is a new sustainable luxury housing project in Delhi with a ₹500-crore investment. It will comprise 190 apartments with green features such as rainwater harvesting, solar panels, and energy-efficient appliances. The sustainable luxury properties embody the future of urban living, featuring:
Use of Sustainable Materials:
Sustainable luxury properties ingeniously incorporate locally sourced and recycled materials. For example, Stone Lodges, a cluster of luxury residences nestled in Wayanad, employs locally available stone and wood, elegantly weaving the natural surroundings into its architectural tapestry.
Energy Efficiency:
Incorporating energy-efficient features, these properties boast double-glazed windows, high-performance insulation, and energy-efficient appliances. Lodha Parkside, a luxurious residential project in Mumbai, exemplifies this with its innovative use of double-glazed glass façades, reducing heat gain and energy consumption significantly.
Water Conservation:
With a keen eye on conserving water, sustainable luxury properties integrate rainwater harvesting systems and low-flow plumbing fixtures. For instance, Godrej Platinum, a luxury residential project in Bengaluru, harnesses rainwater, storing up to a staggering 1.8 million liters, ensuring sustainable water usage.
Renewable Energy:
Harnessing the power of renewable sources, these properties incorporate solar panels and wind turbines, epitomizing energy self-sufficiency. Mahindra Luminare, a luxurious residential project in Gurugram, is illuminated by solar panels generating up to 40% of its common area power requirement.
The Bright Future of Sustainable Luxury Real Estate in India
This surge in sustainable luxury real estate is not merely a trend; it’s a profound shift in the market ethos. A study by JLL involving over 550 corporate real estate leaders in Asia Pacific, including India, reveals that 9 in 10 respondents perceive the connection between Corporate Real Estate (CRE) and sustainability as a board-level agenda. Moreover, green real estate assets in India’s key cities have increased from 24% in 2011 to a commendable 31% in 2021. According to a report of 2022, the availability of green real estate assets, compliant with ESG standards, has surged by a substantial 37% in the last five years. These statistics aren’t just numbers; they represent a robust, sustainable future for the Indian real estate industry.
The luxury real estate market is witnessing a surge in demand for properties in global hotspots, where high net worth individuals (HNIs) and ultra-HNIs are investing. These hotspots offer a blend of lifestyle, security, convenience, and returns for the discerning buyers. Some of the popular global destinations include London, New York, Dubai, Singapore, Hong Kong, and Sydney, where HNIs can find premium properties with world-class amenities and services. However, these markets are not the only ones that attract HNIs’ attention. There are also some emerging markets in India, such as Delhi, where HNIs can find properties that match their expectations of luxury and sustainability. One such project is Tarc Tripundra, a luxury residential development in Delhi that offers spacious 3 and 4 BHK flats with fully loaded kitchens, home automation features, air purifiers, and high security. By investing in such projects, HNIs can not only enjoy the benefits of living in a global hotspot, but also contribute to the environment and the local economy.
The Trend
As we stand on the cusp of this monumental shift in India’s luxury real estate market, it’s evident that sustainable luxury properties are not just dwellings; they are testaments to a new way of living. A way that harmonizes opulence with environmental stewardship, a way that caters to the desires of the present generation without compromising the future of generations to come. In this paradigm, where luxury is synonymous with consciousness, developers and buyers alike are not just building houses; they are constructing a legacy of sustainable living.
(By Shuaib Ahmad, Head of Sales, TARC Ltd. Views are personal)