It is forecasted by the esteemed NITI Aayog that by the year 2030, the Indian Real Estate sector will be valued at a staggering US$1 trillion, equating to roughly 18-20 percent of the country’s Gross Domestic Product. Such growth, however, does come with some ecological repercussions, which cannot be ignored. In response, the Indian Real Estate industry and its developers have made a conscious decision to adopt sustainable methods of construction. In doing so, they strive to minimize their impact on climate change, while still contributing to the country’s development renaissance.
Luxury realtor and social media content creator, Snehil Yadav says, “Leading bodies, such as the Indian Green Building Council (IGBC), have issued guidelines and certifications that the industry has eagerly embraced. By adhering to these standards, they aim to provide the Indian people with sustainable and environmentally friendly living spaces. This shift towards more eco-friendly methods of construction has made India one of the world’s leaders in this field, with a bold vision to continue in this vein through 2030 and beyond.”
The Central and State Governments are equally encouraging this trend, providing incentives for developers to remodel and develop buildings with a focus on energy efficiency and emission reduction. The result is a blossoming industry that is both forward-thinking and responsible and a brighter future for India’s citizens and the planet as a whole.
Need to embrace green sources
India is on the cusp of a major urbanisation boom, with over 377 million people currently living in cities, and projections predict that number to balloon to a staggering 600 million by 2031. With cities driving the country’s growth, it’s no surprise that they also account for over 70% of India’s greenhouse gas emissions.
Enter the real estate industry, with its innovative use of green construction technologies that are enabling a gradual transition towards cleaner and more renewable energy sources. The NITI Aayog has predicted that the residential sector’s electricity usage will increase tenfold by 2047, making the real estate industry an essential player in mitigating the challenges of climate change.
Through reducing energy demand, the industry is tackling issues related to electricity consumption for heating and cooling, as well as material and land requirements, and other infrastructure needs. As a result, developers in India are rising to the challenge, committed to creating sustainable and eco-friendly urban landscapes that can support the growing needs of the nation.
By adopting cleaner and renewable sources of energy, the real estate industry is not just building for today but for future generations. The industry’s contribution towards reducing India’s carbon footprint is a testament to its commitment towards a brighter and more sustainable tomorrow.
Sustainability driving investments
Sustainability has become a buzzword in the real estate industry, and for good reason. Not only does it promote eco-friendly living and reduce carbon footprint, but it’s also a profitable investment that offers higher returns.
Certified sustainable structures have proven to command significantly higher rents and capital values. This is because occupiers are drawn to the lower operating and energy costs that come with such buildings. With more businesses committing to net zero targets, demand for sustainable buildings is on the rise. Certified projects, in particular, are at the forefront of building a better tomorrow, enticing investors with their investment potential and prospects for long-term growth.
The trend towards sustainable buildings is not unique to India alone; it is a global phenomenon that has been observed across the world. Certified projects have consistently demonstrated an increase in both capital values and rental yields. This reflects the broader recognition of the economic potential of sustainably built properties.
The real estate industry is increasingly waking up to the fact that sustainability is no longer a mere trend, but an essential aspect of the future of the industry. As developers, investors, and occupiers alike shift their focus to more sustainable options, it is becoming abundantly clear that the returns on investment are significant, not just financially, but for the environment and society as well. By prioritizing sustainability, the industry can pave the way for a brighter, more profitable, and sustainable future.
GenZ driving sustainability
In recent years, a remarkable shift has taken place in how people think and want to live. A newfound awareness of our actions and their impact on the environment has sparked a sense of responsibility toward creating a better, more sustainable world.
The rise of Gen Z, in particular, has been a driving force behind this shift. This generation believes that unity is a superpower and is committed to coming together to create meaningful change for the common good. With an astonishing 70% of Gen Z globally involved in social causes, it’s clear that the movement toward sustainability is here to stay.
As more and more homebuyers become conscious of their environmental impact, demand for greener homes has been steadily rising. The desire for sustainability is not just a trend but a fundamental shift in the way we view the world around us. People are seeking eco-friendly homes that reflect their values and contribute to a healthier, more sustainable future.
With the real estate industry rising to the challenge, sustainable housing has become more accessible and affordable than ever before. Innovative green technologies and building materials are making it easier for developers to create homes that are both environmentally friendly and comfortable to live in.
The shift towards greener homes is not just a trend but a reflection of a broader movement towards creating a better world. As we strive towards a more sustainable future, it’s clear that the real estate industry has a critical role to play in building a better tomorrow. By offering eco-friendly homes, the industry is helping to meet the demand of a more conscious pool of homebuyers who are committed to creating a better, brighter future for all.
Achieving the Sustainable Development Goals (SDGs) is no easy feat. It requires a multi-faceted approach, integrating ESG and climate data, a committed workforce focused on sustainable research and asset management, and a long-term strategy for sustainable development.
Effective integration of ESG and climate data is essential for developers to make informed decisions about their projects. By considering environmental, social, and governance factors in their decision-making process, developers can ensure that their projects have a positive impact on both the environment and society.
A committed workforce focused on sustainable research and asset management is crucial for the success of sustainable development initiatives. Professionals with expertise in sustainability can identify opportunities for innovation and implement effective strategies for sustainable development. By partnering with property managers, developers can ensure that sustainability is a core component of asset management practices, resulting in long-term benefits for the environment and society.
Long-term dedication to a sustainable strategy is also crucial for achieving the SDGs. Sustainability must be more than just a buzzword; it must be a core component of every aspect of the real estate industry. From planning and design to construction and operation, sustainability must be a guiding principle. By committing to a long-term sustainable strategy, developers can ensure that their projects have a positive impact on the environment, and help India to become a global leader in sustainable development.
As citizens and responsible developers of one of the fastest growing nations in the world, it is our duty to put these concepts into practice. By implementing ESG and climate data integration, investing in a committed workforce focused on sustainable research and asset management, and committing to a long-term sustainable strategy, we can benefit from the positive effects of sustainable development on the environment and society. Let us work together to build a better, more sustainable future for all.