India’s real estate landscape is undergoing a transformative shift, with green and smart buildings emerging as the preferred choice for investors.
This trend is driven by a confluence of factors, including rising energy costs, heightened environmental awareness, and the pursuit of sustainable urban development. Green-certified buildings, equipped with advanced technologies, not only offer environmental benefits but also promise long-term financial returns, making them an attractive proposition for investors seeking resilient and future-ready assets. The Indian Green Building Council (IGBC) reports that the country now boasts over 10,000 registered green building projects, encompassing more than 10 billion square feet of space. This surge is attributed to the growing recognition of the tangible benefits these structures offer, including reduced operational costs, enhanced occupant well-being, and compliance with environmental regulations.
Investors are increasingly drawn to green buildings due to their potential for higher rental yields and occupancy rates. Studies indicate that such properties can command a premium in the market, reflecting their desirability among tenants and end-users who prioritize sustainability and energy efficiency. The integration of smart technologies in building management has further amplified the appeal of these structures. The Indian smart building market is projected to reach USD 15.67 billion by 2030, growing at a compound annual growth rate (CAGR) of 34.6% from 2025. This growth is fueled by the adoption of Internet of Things (IoT) devices, artificial intelligence (AI), and advanced analytics, which collectively enhance operational efficiency, reduce energy consumption, and improve occupant comfort.
Government initiatives have played a pivotal role in promoting green and smart buildings. Policies offering incentives such as property tax rebates for green-certified buildings have been implemented in various cities, including Nagpur, where buildings with IGBC certification can avail up to a 20% rebate. Such measures not only encourage sustainable construction practices but also provide financial benefits to property owners. Moreover, the emphasis on sustainable urban development is evident in large-scale projects like Palava City near Mumbai, designed to minimize energy use and adapt to climate change. The city incorporates green infrastructure, efficient buildings, and renewable energy sources, serving as a model for environmentally resilient urban planning.
The convergence of environmental concerns, technological advancements, and supportive policies underscores the growing significance of green and smart buildings in India’s real estate sector. As investors increasingly prioritize sustainability and long-term value, these structures are poised to redefine the future of urban development in the country.
Also Read :IRCON wins Rs 1068 crore Ganga bridge contract
