In a country experiencing rapid urbanisation and population growth, sustainability has emerged as a crucial factor shaping the future of real estate in India. With a focus on energy efficiency, water conservation, eco-friendly materials, smart city solutions, and social considerations, the sector strives to create environmentally responsible and socially inclusive spaces. The integration of sustainable practices addresses the challenges of climate change and environmental degradation and offers economic benefits and improved quality of life for residents. Let’s delve into the details of how sustainability is transforming India’s real estate landscape.
Green buildings, prioritising sustainability and energy efficiency, have gained significant attention in the wake of the coronavirus pandemic. These buildings provide a healthy lifestyle for residents and minimise environmental impact. Recognising their effectiveness in combating pandemics and similar diseases in future, stakeholders in the real estate sector must prioritise sustainability and the development of green buildings to ensure a better environment for future generations.
Naredco, a premier autonomous self-regulatory body, has recently signed a Memorandum of Understanding (MoU) with CII’s Indian Green Building Council (IGBC). This partnership aims to carry out Green building projects in five states in India—Haryana, Rajasthan, Telangana, Karnataka and Odisha—to demonstrate tangible benefits and foster sustainability. Such collaborations are crucial in driving the demand for green buildings and spreading awareness about their importance.
While the demand for Green buildings is growing, the adoption of green practices in housing projects remains limited. This indicates a need for greater awareness and a stronger push from developers and consumers to significantly change the real estate industry. Developing Green buildings often incurs higher costs, leading to developers passing these expenses on to buyers. Consequently, the demand for green housing primarily comes from financially stable buyers rather than first-time buyers. To make sustainable housing more accessible, stakeholders must focus on cost-effective solutions and promote affordability alongside sustainability.
The government has emphasised and incentivised sustainability features in housing with a primary focus on affordable housing. However, sustainability and affordability often fall on opposite ends of the pricing spectrum, and many developers prioritise affordability over sustainability. To address this challenge, IGBC and Naredco are working closely with the Ministry of Housing and Urban Affairs (MoHUA) to promote green, affordable housing across the country. These initiatives aim to strike a balance between sustainability and affordability, ensuring that sustainable living environments are accessible to a wider range of buyers.
Sustainability in real estate is closely linked to energy efficiency. Recognising that buildings account for a significant portion of energy consumption and greenhouse gas emissions, developers in India are increasingly adopting Green building practices. This includes incorporating renewable energy sources, optimising insulation, and utilising energy-efficient technologies. Innovative projects like net-zero energy buildings and solar-powered developments are gaining traction, significantly reducing carbon footprints and minimising energy costs for occupants.
