The Indian real estate landscape is undergoing a significant transformation, with green buildings emerging as the new standard in construction. This shift towards sustainable architecture is not merely a passing trend but a response to pressing environmental concerns and a growing awareness among property buyers. As India strives to reduce its carbon footprint and embrace a more sustainable future, the real estate industry is playing a crucial role in this green revolution.
The surge in demand for green buildings in India can be attributed to two primary factors, according to Piyush Bothra, Co-founder & CFO of Square Yards. Firstly, the younger generation of Indians, who are driving demand due to the startup revolution, are significantly more environmentally conscious. Secondly, there is greater access to green funding for sustainable projects, making it financially viable for developers to invest in eco-friendly construction practices.
The need for green building practices has become increasingly apparent as awareness grows about the environmental impact of conventional construction. Buildings and construction account for a staggering 36% of global energy use and 39% of energy-induced carbon emissions annually. This realization has prompted the real estate community to integrate sustainability into building design and construction techniques, aiming to lower environmental impact and appeal to environmentally-conscious buyers.
Harish Fabiani, Chairman of Indialand Group, highlights that modern green building projects are equipped with advanced water and waste management systems and feature renewable energy sources like solar panels. Some commercial properties even offer EV charging hubs, catering to the growing number of electric vehicle owners. The Confederation of Real Estate Developers' Associations of India has partnered with the Indian Green Building Council to promote the development of 4,000 certified green housing projects by 2030, creating significant opportunities for the sector to capitalize on the sustainability trend.
Green buildings offer multiple advantages beyond environmental benefits. They typically have higher asset values than conventional buildings, allowing developers to command higher rental prices. Additionally, their low maintenance requirements reduce operating costs, making green real estate projects an attractive investment avenue, especially as more entities seek sustainable living and office spaces.
Aman Sarin, Director & Chief Executive Officer of Anant Raj Limited, notes that home buyers are increasingly demanding eco-friendly projects. In response, developers are introducing projects that prioritize environmental measures. For instance, Anant Raj Limited's 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 their green projects, adhering rigorously to sustainable guidelines.
The adoption of green building practices in India is not just a market-driven phenomenon but also supported by government initiatives and green certifications. Gurmit Singh Arora, National President of the Indian Plumbing Association, emphasizes that as urban areas expand, the focus on creating sustainable living spaces is crucial for India's long-term environmental and economic health. This green revolution in real estate is paving the way for more innovative and resilient cities that strike a balance between growth and ecological conservation.
To further advance sustainable real estate, industry experts like Sridhar Samudrala, Founder of Hecta, suggest the development of a formal 'Green Code' design approach. This would cover the conservation of energy, water, and natural resources, similar to existing Vastu principles and the National Building Code. A rating system akin to the LEED rating system in the United States could promote the adoption of this 'Green Code' in India, creating demand and pushing for compliance without the need for government incentives. As the new generation is strongly oriented towards sustainability, such a policy framework could provide the necessary thrust to widely adopt green building principles across the country.
