INDIAN REALTY RIDES THE GREEN WAVE
In recent years, the concept of sustainability has taken centre stage in virtually every industry and the real estate sector in India is no exception. As aware- ness about environmental issues increases and regulations become more stringent, the importance of sustainable development in Indian real estate has never been more apparent. The demand for green buildings and eco-friendly infrastructure is on the rise as both commercial and residential buyers prioritize energy efficiency, water conservation, and waste management. This trend has led to several transformations within the industry, opening new avenues for innovation and sustain- able growth. One major shift has been the adoption of green construction practices by developers in past few years. The Green construction focuses on using environmentally responsible materials and processes- es throughout a project's lifecycle. This includes incorporating ener- energy-efficient designs, locally sourced materials, recycling waste during construction, and using solar energy for power generation. Additionally, builders are opting for more climate-resilient designs that can withstand extreme weather events related to climate change. These constructions often utilize cutting-edge technologies to minimize their impact on the environment while maximizing efficiency. The inclination towards green buildings is not limited to developers and builders. End-users have shown a growing preference for eco-friendly homes due to increasing aware- ness about the environmental impact of traditional housing. Buyers are now more conscientious when it comes to purchasing homes that promote sustainable living.Another factor driving sustain- ability in Indian real estate is government support. The Indian government's ambitious Smart Cities Mission has been an instrumental factor in pushing urban centres to adopt sustainable practices. Furthermore, the Ministry of New and Renewable Energy (MNRE) encourages developers to implement renewable energy solutions in their projects through various incentives and policy interventions. As sustainability becomes a dominant theme in the Indian real estate sector, The coming years will see all stakeholders prioritizing eco-friendly solutions and commit to responsible growth. The only re- quired effort is to make sure the awareness percolates to the urban poor, who are losing the grip on tra- ditional living benefits in the quest of imitating urban living. ECO-AWARENESS CLIMBS THE CORPORATE LADDER As an enabler of real estate, the sustainability measures form an important part of the ESG (environment, Sustainability, Governance) goals of the investors. Eco-friendly developments and buildings are gaining popularity among major corporations, seeking green to reduce their environmental footprint and showcase their commitment to sustainability and employee well-being. Companies now more often than not, involve investing in sustainable practices as a way for them to make a positive impact on the environment and society. As a result, there has been a significant rise in the adoption of green building technologies, including the use of solar panels, energy-efficient appliances and rainwater harvesting systems. Furthermore, in the design, construction, and maintenance phases also corporate are enhancing resource efficiency through the optimization of resources such as water, energy, and construction materials. They achieve this by utilizing better planning tools, implementing renew- able energy sources like solar and wind power, and employing recycled materials during construction while focusing on reduced water consumption in building designs. These practices will not only lead to long-term cost savings, but also continue to forge the real estate sector’s path of renewable energy and environmental sustainability. Corporate Social Responsibility (CSR) driven sustainable real estate investments and initiatives of the corporate too are contributing to a cleaner environment and demanding more responsible use of resources- es from the real estate sector as well. Green technology advancements, such as energy-efficient systems and sustainable materials, are now more readily available and affordable, enabling their incorporation into property development. To encourage sustainable building initiatives, the Indian government presents various incentives including tax benefits and accelerated approval processes to the real estate sector. SUSTAINABLE MAKEOVER UNFOLDS Sustainability has become a buzzword in recent times, as con- cerns over climate change and the depletion of natural resources have come in the limelight. The concept of green buildings and eco-friendly residential and commercial prop- erties is rapidly gaining popularity in the country. This trend is gaining traction across both rural and urban landscapes in India. The two key aspects that will continue to enable the real estate transformation in coming years are: Consumer Demand: The Indian real estate industry, once notorious for its polluting construction and lack of environmental safeguards, is witnessing a gradual shift. A key driver of this change has been the rise in consumer demand for sustainable and environment-friendly spaces. Today's homebuyers, particularly the younger generations, are increasingly aware of their social responsibilities and are placing a greater value on sustainable living. The real estate market in India is responding to these changing preferences by incorporating eco-friendly designs and construction methods in their projects. Not surprisingly, more and more developers are adopting green building techniques to cater to the rising consumer demand for environmentally responsible housing options. Green buildings not only contribute to environmental conservation but also offer long-term benefits like energy efficiency and waste reduction. The Indian Green Building Council (IGBC) and Green Rating for Integrated Habitat As- sessment (GRIHA) are playing a vital role in popularizing green building concepts among the masses and the professionals.The real estate is getting more lucrative with investing in sustainable practices and construction as not only it reduces operating and maintenance costs for the owners, but also attracts property occupiers due to lower operating costs, resulting in higher resale values. Industry Regulations: India's rapid economic growth and urbanization has generated unprecedented demand for real estate development. As businesses and people increasingly choose to work, live and play in modern, sustainable spaces, the focus on incorporating Environmental, Social, and Governance (ESG) principles has become indispensable for Indian real estate developers. These principles not only affect investors but also have a considerable impact on Indian society and the environment. As India commits to global standards on ESG, real-estate developers have to comply with stringent regulatory requirements. The implementation of regulations like the Real Estate (Regulation and Development) Act 2016, India's Na- tionally Determined Contributions (NDCs), green building norms, SEBI's Business Responsibility and Sus- tainability Reporting requirements, among others have spurred the sec- tor to adopt sustainable practices. Firms are increasingly prioritizing transparent corporate governance, adhering to stricter regulations and audits, for improved ESG perfor- mance. Developers and property owners are creating workspaces that focus on occupant wellness. This includes offering amenities like green spac- es, natural lighting, and adequate ventilation within the premises. Customers value such features as they contribute to higher employee satisfaction and productivity. Green building certifications like IGBC, GRIHA, and LEED are gaining popularity among Indian developers. These certifications encourage the use of solar panels, rainwater harvesting, landscaped terraces, natural ventilation, and waste management facilities. Retrofitting exist- ing buildings is another vital aspect, which includes upgrading lighting systems to LED lights, installing solar water heating systems, and using better insulation products. This helps reduce energy consumption and enhances a building's sustainability- city credentials. The smart cities in making prioritize walkable spaces and upgraded public transport. This reduces car reliance, slashing emissions and fostering sustainability in urban living. In line with these trending shifts, Indian financial institutions too have started offering customized financing solutions for green buildings. Developers who incorporate sustain- able design principles can access favourable financing terms, lower interest rates, and tax incentives, paving the way for increased in- vestment in green projects. THE COP 26 PROMISES TO KEEP The 26th United Nations Climate Change Conference of the Parties (COP26) held in Glasgow, Scotland, placed a renewed focus on the need for sustainable practices across various industries around the world. India announced several significant commitments including, achieving 50% of its energy from renewable sources by 2030, enhancing its non-fossil fuel-based energy capacity to 500 gigawatts, reducing projected carbon emissions by 1 billion tons by the end of 2030 and aiming for net-zero emissions by 2070. GREENER PASTURES AHEAD Sustainability has emerged as a significant enabler of the Indian real estate sector, driven by buyers' demands, ESG mandates, and the global momentum from COP26. As our society becomes increasingly aware of the environmental challenges we face, embracing sustainable practices is no longer a luxury but a necessity for long-term success in the real estate market. By prioritizing green buildings, energy efficiency, and responsible resource management, Indian real estate has already set foot on the right path. The road ahead gets clearer as the sector keeps going on the quest of balancing economic and social growth and environmental stewardship. No, doubt, the transformation towards a more sustainable Indian real estate landscape is crucial for securing a better tomorrow for both the industry and the planet. WHILE, THE ASPIRATIONS ARE COMMENDABLE, THE TARGETS SEEM DIFFICULT TO ACHIEVE. REAL ESTATE AND CONSTRUCTION SECTOR BEING ONE OF THE BIGGEST CONTRIBUTORS TO CARBON EMISSIONS CAN TAKE THE LEAD IN KEEPING THE PROMISES. CORPORATE INITIATIVES FUEL GREEN REAL ESTATE INVESTMENTS, PROMOTING ECO-FRIENDLY TECHNOLOGIES AND RESOURCE EFFICIENCY FOR A HEALTHIER ENVIRONMENT. AMIDST COVID-19, SUSTAINABLE BUILDINGS PRIORITIZE WELLBEING WHILE GLOBAL COMMITMENTS AND URBAN DEVELOPMENT AMPLIFY THE PUSH FOR GREENER PRACTICES. IN INDIA, REAL ESTATE HAS BEEN EXPERIENCING REMARKABLE GROWTH OVER RECENT YEARS. HOWEVER, THIS GROWTH PRESENTS NEW CHALLENGES FOR DEVELOPERS AND CITY PLANNERS TO ADOPT MORE SUSTAINABLE PRACTICES IN FACE OF THE MOUNTING COSTS AND LIMITED TECHNOLOGIES AVAILABLE. THE INDIAN REAL ESTATE SECTOR’S STRUGGLE TO ADAPT AND INNOVATE TO MEET THE RISING EXPECTATIONS TO REDUCE ITS CARBON FOOTPRINT WILL CONTINUE IN THE FUTURE AND HOPEFULLY WILL RISE TO WIN THE BATTLE. GREEN CONSTRUCTION AND ECO-FRIENDLY HOMES ARE TRANSFORMING INDIA'S REAL ESTATE LANDSCAPE, DRIVEN BY GROWING SUSTAINABILITY AWARENESS AND GOVERNMENT SUPPORT. DEVELOPERS AND CORPORATIONS ALIKE ARE PRIORITIZING ENVIRONMENTALLY RESPONSIBLE DESIGNS, ENSURING A GREENER FUTURE WITH LONG-TERM RETURNS.
Tags : INDIAN REAL ESTATE ENVIRONMENT SENSITIVE DEVELOPMENT SWEEPING COUNTRY SUSTAINABILITY AWARENESS Industry Regulations