As the world faces the growing challenges of climate change and environmental degradation, the real estate sector has emerged as a crucial player in promoting sustainability. In India, a country experiencing rapid urbanization and population growth, the need for sustainable real estate practices has become even more pressing. The integration of sustainability principles is not only essential for environmental preservation but also offers economic and social benefits.

After the coronavirus pandemic, green buildings have emerged as a crucial element in real estate development to provide a healthy lifestyle to the residents, and minimize the impact on the environment. The concept of green buildings, which prioritize sustainability and energy efficiency, has gained significant attention as an effective strategy in combating not only the pandemic but also similar diseases in the future. Every stakeholder involved in real estate has to show a more inclination towards holding the flag of sustainability and green building to ensure a better environment to breathe in for the generations to come.

At NAREDCO, a premier autonomous self-regulatory body, we are constantly exploring partnerships to ensure that the exponential real estate infrastructure growth should not deprive people of a quality lifestyle. Recently, we signed an MoU with CII’s Indian Green Building Council where the two bodies will focus on five states in India — Haryana, Rajasthan, Telangana, Karnataka, and Odisha — to carry out green building projects and demonstrate tangible benefits.

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The demand for green buildings is driven by government initiatives and growing awareness among end-users about the importance of sustainable solutions. However, the adoption of green practices in housing projects remains limited, indicating that the demand for green homes is still relatively low. There is a need for greater awareness and a stronger push from both developers and consumers to bring about a significant change in the real estate industry.

The need is for capacity building for which we have taken steps where IGBC will organize training programs and awareness in various cities to NAREDCO members; such steps have to taken at a larger level by all the stakeholders to ensure that the awareness among end users also increases leading to no other option but to develop only sustainable buildings.

The green building movement stepped into India almost a decade back, but the demand is predominantly driven by consumers in the commercial segment. Many multinational companies now require sustainability features typically found in Grade A office buildings. The IGBC has seen significant growth in green building projects, with over 6,000 registered projects; however, only a percentage (5-7%) of these projects are residential buildings.

Also, developing green buildings incurs higher costs, leading developers to pass these expenses on to buyers. As a result, the current demand for green housing primarily comes from financially stable buyers rather than first-time buyers, who are more sensitive to price differences for similar amounts of space. The requirement is to work towards making it accessible to the majority of buyers.

While the government has emphasized and incentivized sustainability features in housing, the primary focus remains on affordable housing. Sustainability and affordability often occupy different ends of the pricing spectrum, and most developers prioritize affordability over sustainability. IGBC and NAREDCO have decided to jointly work with the Ministry of Housing and Urban Affairs (MoHUA) to promote Green Affordable Housing in the country. The stakeholders have to look at the modalities to ensure that there are dampeners in the march toward having a sustainable living environment.

For further understanding, sustainability in real estate is closely linked to energy efficiency. The construction and operation of buildings account for a significant portion of energy consumption and greenhouse gas emissions. In response, developers in India have to increasingly adopt green building practices, such as incorporating renewable energy sources, optimizing insulation, and utilizing energy-efficient technologies. Projects like net-zero energy buildings and solar-powered developments have to gain traction, which will reduce carbon footprints and minimize energy costs for occupants.

Furthermore, technology is playing a pivotal role in developing sustainable solutions in the real estate sector. Smart building systems enable the monitoring and control of energy consumption, optimizing resource usage and reducing waste. Additionally, the integration of sensors and automation allows for touchless interactions and the implementation of social distancing measures within buildings.

We have to understand the gravity of the situation after looking at the diminishing water levels in major cities. Sustainable real estate initiatives have to focus on efficient water management through rainwater harvesting, wastewater treatment, and the use of low-flow fixtures. The implementation of such measures not only reduces strain on water resources but also helps mitigate flooding and enhances the resilience of buildings to climate change impacts.

Additionally, traditional construction practices often involve the use of materials that contribute to deforestation and pollution. The sector has to be encouraged to use sustainable alternatives such as recycled materials, responsibly sourced wood, and low-emission products. Additionally, innovative construction methods, such as modular construction and 3D printing, have to be employed to minimize waste, energy consumption, and construction time.

Furthermore, sustainable real estate embraces the concept of smart cities. Integrating technology and digital solutions into urban planning and infrastructure development enhance resource efficiency, connectivity, and livability. Smart buildings equipped with automated systems for lighting, HVAC, and waste management optimize energy consumption while providing a comfortable and sustainable living environment. Moreover, the adoption of smart grids, electric vehicle charging stations, and intelligent transportation systems contributes to a cleaner and more efficient urban ecosystem.

Lastly, sustainability in real estate goes beyond environmental considerations and encompasses social aspects. Sustainable developments prioritize the well-being and quality of life of residents. This includes creating green spaces, promoting walkability, and fostering community engagement. Accessible public transportation, healthcare facilities, and educational institutions within proximity improve the overall livability of sustainable neighborhoods.

In conclusion, sustainability is reshaping the future of real estate in India. By integrating energy efficiency, water conservation, eco-friendly materials, smart city solutions, and social considerations, the sector has to work harder to create environmentally responsible and socially inclusive spaces. The adoption of sustainable practices not only contributes to mitigating climate change and conserving resources but also provides economic benefits by reducing operating costs and enhancing property value. With the increasing recognition of sustainability as a priority, the real estate sector in India is paving the way for a greener and more sustainable future.

(By Rajan Bandelkar, President, NAREDCO. Views are personal.)