Spearheading sustainability through India's real estate industry

Reeza Sebastian,

President, Residential Business, Embassy Group

In recent years, the world has witnessed a significant shift towards sustainable living, with environmental concerns driving consumer behaviour across various industries. The Indian residential real estate sector is no exception to this global trend. Today's homebuyers look not just at upgrading their lifestyle with lavishly designed residences in prime locations but also at features that add to a holistic living experience, keeping sustainability at the core. We have been witnessing a substantial change in consumer patterns, coupled with both innovative and proactive measures taken by real estate companies to cater to this demand.

What are sustainable homes?

Sustainable homes, also known as green homes, are houses that are constructed and designed with a focus on minimising environmental impact while improving the quality of life for occupants. These homes are built to be energy-efficient by integrating renewable energy sources and eco-friendly materials. The real estate industry in India is increasingly turning to sustainable housing solutions in order to address challenges such as environmental degradation, loss of biodiversity, and depletion of natural resources.

Sustainable housing in India

With this shift in preference driven by growing awareness among homebuyers of the impact of climate change, the term 'sustainable housing' has gained prominence recently, and for good reason. The demand for homes and office spaces is intensifying along with the rising population of India, now the most populous country in the world. The environment, ecosystem, and natural resources have been put under more strain. Sustainable housing intends to address these challenges by providing eco-friendly solutions that will help minimise the carbon footprint of buildings.

As per reports, the Indian real estate sector will be worth US$1 trillion by 2030, eventually accounting for 18-20 percent of the country's GDP. While the nation is experiencing a development renaissance, infrastructure development has a substantial impact on the ecological cycle. To fight climate change, real estate developers are working to minimise the environmental impact of building construction, design, and resources. Many developers are actively engaging in green building certifications such as LEED (Leadership in Energy and Environmental Design) and IGBC (Indian Green Building Council) to showcase their commitment to sustainability. These certifications ensure that residential projects meet specific environmental criteria, including energy efficiency, water conservation, waste management, and indoor air quality.

Consumer behaviour

No longer content with simply owning a luxurious home, modern homebuyers seek residences that have eco-friendly designs, reduce their energy consumption, and minimise their carbon footprint. Millennials and Gen-Z, who now form a substantial part of the homebuyer market, tend to be more environmentally conscious and place a higher value on sustainability. They recognise the value of choosing homes that reduce their living costs and carbon footprints. A recent industry study supports this notion, demonstrating that green buildings consistently achieve higher occupancy rates and command attractive rental premiums.

The benefits of sustainable homes

Cost efficiency and economic benefits: Green homes usually require a larger financial investment due to the use of expensive materials and techniques. However, the long-term benefits of lower operations and maintenance costs, savings on recurring bills such as electricity and water, and higher assets and rental value, among many other benefits, outweigh the higher costs. Sustainable materials also tend to last for a longer period, thereby eliminating the cost of regular maintenance or replacement.

Efficient use of energy, water, and other resources: Buildings, through sustainable design, construction, and operations, can be climate-resilient, use less water and energy, defend biodiversity, conserve natural resources, and generate less waste. Solar panels, rainwater harvesting systems, and other energy-efficient appliances not only reduce the environmental impact of homes but also their costs.

Health benefits: Wellness has been a crucial aspect of luxury living. Developers have promoted healthier living with air purification systems, green spaces, natural lighting, and sustainable materials, all of which serve to give homes a more quiet, luxurious aesthetic. More homes are also utilising indoor-outdoor spaces that effectively blend the best of both worlds: luxury and sustainability. Homes that are designed to seamlessly merge indoor and outdoor living spaces with features such as large windows, sliding glass doors, and outdoor kitchens promote health through features such as ventilation systems for optimised indoor air quality and more than half of the home hosting natural lighting. Green spaces within the projects, such as parks, rooftop gardens, and lush community areas, provide residents with the opportunity to connect with nature and foster well-being.

The Ministry of Environment, Forest, and Climate Change (MoEFCC) and the Government of India offer speedy environmental clearance for green building projects that are pre-certified or have a provisional certification by the IGBC. There are state-level incentives on floor area ratio (FAR) for green buildings in states such as Maharashtra, Rajasthan, Punjab, Uttar Pradesh, Gujarat, Tamil Nadu, Kerala, Uttarakhand, Andhra Pradesh, and West Bengal, with other states soon to follow. The government has also initiated a few other schemes that have the potential to boost the green construction sector, such as the Pradhan Mantri Awas Yojana (PMAY) and Eco-Niwas Samhita.

In line with these efforts, the real estate industry can play a significant role in supporting India's vision of achieving its net-zero target by 2070. As the country continues to urbanise, it is crucial that developers start implementing sustainable practices to curtail the environmental impact of housing. Contemporary homebuyers, especially from the millennial generation, prioritise sustainable living. This goes hand-in-hand with receiving a better return on investment, as green buildings have significant efficiencies that reduce operating costs, lowering the financial stress for a buyer in the long run as well as providing emotional fulfilment. It's time to future-proof our real estate and pave the way for a better, more sustainable world.

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