The nation is actively striving for a more environmentally-friendly and sustainable future by concentrating on decreasing greenhouse gas emissions, enhancing energy efficiency, and embracing renewable energy sources. Driven by this, the real estate industry in India is also witnessing a significant increase in green building and sustainability projects, covering all parts of the country.
The demand for green buildings has increased due to the confluence of two factors – (i) Indian youths (who are also large demand drivers due to the entire startup revolution in India) are much more environmentally conscious, and (ii) greater access to green funding being available for sustainable projects, says Piyush Bothra, Co-founder & CFO, Square Yards.
Developers say there is need for green building practices to minimize environmental footprint and ensure resource-efficient operations. The demand is rising as more property buyers become aware of how buildings and constructions add to carbon emissions. Annually, they account for 36% of global energy use and cause 39% of energy-induced carbon emissions. This has prompted the real estate community to integrate sustainability into building design and construction techniques to lower environmental impact and connect with environmentally-conscious buyers.
Harish Fabiani, Chairman, Indialand Group, says, “Today, green building projects are equipped with water and waste management systems, and feature renewable energy sources like solar panels to offer a sustainable living experience. Some commercial properties even feature EV charging hubs to offer EV owners the convenience of charging. Even the Confederation of Real Estate Developers’ Associations of India has joined forces with the Indian Green Building Council to promote the development of 4000 certified green housing projects by 2030, creating opportunities for the sector to tap into the sustainability trend.”
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Notably, green buildings’ eco-friendly and efficient features make their asset value higher than conventional buildings, allowing developers to earn higher rental prices. In addition, “they are low maintenance which reduces their operating costs, making green real estate projects a lucrative investment avenue, especially when more entities seek sustainable living and office spaces,” he adds.
There is growing concern about climate change in general. Prioritizing environmental preservation and transitioning towards sustainability have become imperative. The development of green buildings is crucial for maintaining the balance of our ecosystem.
“Home buyers are becoming increasingly aware of this necessity and are now demanding eco-friendly projects. Recognizing this shift in consumer preferences, developers are responding by introducing projects that prioritize environmental measures. For example, our newly-launched projects in Sector 63A, Gurugram, have been awarded GOLD-level certification by the Indian Green Building Council (IGBC). The integration of open and green spaces is a central feature of our green projects, and we adhere rigorously to these guidelines. Home buyers are increasingly attracted to such projects and are often willing to pay a premium for the environmental benefits they provide,” says Aman Sarin, Director & Chief Executive Officer, Anant Raj Limited.
No need to mantion that green buildings have become the current rage. All this has been a clear evolution due to increased consciousness on environmental issues by developers, investors, and consumers. The use of environment-friendly concepts, practices, and materials in construction and energy conservation is no longer a fashion or a desire, but a necessity due to increased global warming and the availability of resources.
“Green buildings have several advantages—operational cost reduction, occupant health, and property value enhancement. Innovative solutions like rainwater harvesting, solar integration, and smart home technologies are slowly becoming standard features in the market. Government initiatives and green certifications give further push to this movement. As urban areas are expanding, the focus on creating sustainable living spaces is crucial for India’s long-term environmental and economic health. This is the green revolution in real estate, and this way will open up for more innovative and more resilient cities that strike a balance between growth and conservation of the ecological,” informs Gurmit Singh Arora, National President, Indian Plumbing Association.
However, for sustainable real estate, the industry also needs to adopt a Green approach in the design. Just like Vastu principles and National Building Code, a formal ‘Green Code’ design approach covering conservation of energy, water and natural resources should be rolled out. Both Vastu and NBC cover green principles to some extent. A formal ‘Green Code’ will build the rigour of adopting them as part of design. We can learn from the US Green Building Council to develop a ‘Green Code’ for India.
Sridhar Samudrala, Founder, Hecta, says, “A rating system such as LEED rating system for India will promote adoption of the ‘Green Code’. Most corporates now sign up for ‘A’ Grade buildings and once we have the ‘Green Code’ ratings, it will create the environment and demand, thus pushing for compliance to ‘Green Code’. Beauty of it is that the government doesn’t need to budget any incentives too. The good quality tenants, higher rentals and lower energy bills serve as the incentives for developers to adopt. The new generation is strongly oriented towards the sustainability approach and a formal policy framework around ‘Green Code’ / Green building principles will provide the required thrust to adopt them.”