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Sustainability As A Service To Real Estate

Aman Gupta, Associate Director, Sustain Labs Paris & Mr. Amrit Rath, Senior Manager, Sustain Labs Paris believe that Sustainability as a Service (SaaS) is a strategy for value creation.

BY Realty+
Published - Tuesday, 06 May, 2025
Sustainability As A Service To Real Estate

By the time India reaches 2047 - its centenary of independence - over two-thirds of its buildings will shape its cities and skylines, which are yet to be constructed. This is not just a data point - it’s an open canvas. And how we seize it will determine whether our cities lock in emissions or leap towards resilience and sustainable growth.

Globally, buildings already account for nearly 39% of carbon emissions - 28% from operations such as energy used for heating, cooling, and lighting, and another 11% from the materials and processes used during construction. While these numbers often dominate policy conversations, they also reflect where most of the resource consumption is concentrated - and therefore, where developers have the greatest opportunity to reduce operating costs, deliver efficiency gains and stronger financial performance.

This opportunity is giving rise to a delivery model - Sustainability as a Service (SaaS) - which enables developers to integrate sustainability into projects from Day 1, not just to meet compliance requirements, but as a strategy for value creation. SaaS is a full lifecycle delivery model that integrates specialized sustainability service providers into projects from the outset. These partners bring in expertise across material selection, regulatory approvals, energy & water efficiency, smart building management systems, waste optimization, and long-term performance management. But more importantly, the model is structured around measurable outcomes: improved asset performance, reduced cost of operations, and increased attractiveness to buyers, tenants and capital.

The economic case is clear - energy efficient buildings save 20-30% in energy costs, while water-smart designs reduce usage by up to 50% - lowering recurring annual operating costs. Another study found that projects that embed sustainability considerations at the design stage can further reduce total project costs by 10%, through improved coordination, fewer delays and more efficient procurement. Moreover, developers that integrate sustainability are also seeing faster project approvals, better documentation for green certifications and enhanced readiness for financing. Assets with robust sustainability features are increasingly commanding valuation premiums and attracting long-term capital.

Major sustainability service providers also help developers in obtaining globally recognized green ratings like LEED, IGBC and WELL. These ratings increase market standing and induce increased occupancy levels. Real-world examples make it clear - DLF Limited have used sustainability services to install zero-discharge water systems and sewage treatment plants, recycling more than 14 million liters of water daily. Likewise, Signature Global India Limited attained IGBC Gold Ratings and reduced air pollution across its affordable housing developments.

Meanwhile, the broader market is accelerating. The global green buildings market size is predicted to grow at a CAGR of 9.42% to reach around USD 1374.2 billion by 2034, driven by an increasing focus on energy-efficient infrastructure. India’s evolving building codes, space cooling interventions and urban policies are also rewarding measurable outcomes - particularly around energy use, water consumption and material use. Notably, India has already demonstrated how efficient service-led models can be - Energy Efficiency Services Limited (EESL) pioneered the efficiency-as-a-service model through nationwide programs such as UJALA and Street Lighting National Program. SaaS in the real estate follows the same logic - delivering better buildings through performance-first, outcome-based delivery.

What makes the SaaS model especially suited for India is its scalability and alignment with rapid urban growth. With most of India’s future buildings yet to be constructed, developers have a rare advantage: they can build right the first time. And with the SaaS model, they don’t need to expand internal sustainability teams. Instead, they can partner with experts who bring technical depth, regulatory clarity, and implementation capacity - all without slowing down project delivery.

Specialized firms such as SLP AlShabah are already enabling this shift. With a track record of building infrastructure across India, the UAE and New Zealand since 1995, they bring in-house real estate and sustainability expertise to support developers in integrating performance-oriented construction, compliance readiness and operational efficiency from the outset.

The message is clear: Sustainability as a Service is no longer an add-on luxury but an intrinsic necessity for future-proof real estate and infrastructure development. By partnering with sustainability specialists, developers can promote greater environmental stewardship, facilitate compliance, lower lifecycle costs and gain market competitiveness.

India is not just building fast - it now has the opportunity to build smart for the future. With the right partnerships, the next phase of real estate growth can be anchored not just in more square footage, but in more value per square foot.

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