APL Apollo
bauma bauma
Building a greener future

Building a greener future

Green building policies in India have fostered an encouraging environment for builders and developers to adopt sustainable construction practices. With government incentives, tax benefits, and increasing awareness of the health and environmental advantages of green buildings, the sector continues to innovate toward a future of sustainable construction in India

The real estate sector plays a crucial role in the economic development of the nation. It is estimated that by 2030, the sector will contribute 15 percent to the GDP and reach a market size of $1 trillion. According to a recent report by Anarock and NAREDCO titled 'Real Estate Unboxed: The Modi Effect,' 71 million people were employed in the real estate sector in 2023, up from 40 million in 2013, showcasing its rapid growth. The real estate sector now accounts for more than 18 percent of the total workforce in India. The report also notes that employment in the real estate sector will continue to grow significantly in the coming years.  As of 2023, around 99.3 thousand real estate projects were registered under the Real Estate Regulatory Authority (RERA) in India. By now the registered real estate projects might have increased considerably. Despite its immense contribution, the real estate sector is also a significant source of greenhouse gas emissions. According to reports, nearly 40 percent of global emissions come from the real estate sector, with 28 percent attributed to building operations related to direct and indirect electricity, heating, and air conditioning, and 11 percent from construction materials.  To minimize and eventually eliminate greenhouse gas emissions, the real estate sector is adopting green practices by incorporating sustainability from the planning stage onward. According to a CBRE South Asia report, India has witnessed a 31 percent increase in green real estate assets across the top six cities — NCR, Mumbai, Pune, Hyderabad, Bengaluru, and Chennai — in the last decade.  A report titled, ‘Sustainable real estate: an opportunity to leverage’, by KPMG in India and Colliers states  in 2023, the office real estate market witnessed a significant shift towards sustainability, registering an 83 percent growth in green office stock compared to 2016. In India, 61 percent of the office market stock was green in 2023, reflecting a growing trend.

Green buildings gain momentum

Green building was initially in its infancy, with only a few reputed builders taking the initiative to construct eco-friendly buildings. This was largely due to the perception that such projects were costly and only affordable to a limited, affluent segment of buyers. However, the pandemic brought about a significant shift. During this time, homebuyers increasingly recognized the importance of owning a house that offered not just shelter, but also enhanced well-being. In response, builders began to add value by incorporating green features such as health clubs, ample open spaces, landscaped gardens, tree-lined avenues, and essential amenities like schooling, shopping, and medical facilities within the complexes. Other added amenities included clubhouses, jogging tracks, gymnasiums, squash courts, swimming pools, and tennis courts, making green buildings more attractive and accessible to a broader range of buyers. These days, the vast majority of real estate developers are wholeheartedly integrating sustainability into their projects. This not only benefits the environment but also extends health advantages to the buyers.  According to one estimate, green homes may come with a price tag at least 15 percent higher than traditional homes, and green buildings can be around 3-5 percent more costly than conventional ones. However, buyers are increasingly aware of their environmental footprint and are ready to invest more in sustainable features and green certifications.

The core of sustainability

In contemporary real estate endeavors, sustainability takes precedence right from the initial design phase, becoming a fundamental element of project management. While ongoing advancements in technology enhance current practices for creating eco-friendly structures, the overarching goal of green buildings remains consistent: to minimize the built environment's impact on human health and the natural world. This is achieved through efficient utilization of energy, water, and resources, safeguarding occupant health, and bolstering productivity while curbing waste, pollution, and environmental harm. Sustainable construction encompasses a spectrum of practices aimed at reducing environmental footprint, conserving resources, and elevating the quality of life for inhabitants. Key considerations in the construction of sustainable and green real estate projects include the use of eco-friendly building materials, prioritizing energy efficiency, minimizing energy consumption, implementing waste recycling and effective waste management strategies. A publication by the International Energy Agency estimates that existing buildings account for over 40 percent of the world's total primary energy consumption and 24 percent of global carbon dioxide emissions.

Overcoming challenges

It's not just real estate developers who are focused on green and sustainable buildings; the Indian government is also deeply involved. The government has set ambitious climate targets, aiming for net-zero greenhouse gas emissions by 2070 and a 45 percent reduction in carbon intensity by 2030 compared to 2005 levels. From the outset, the government has prioritized the agenda of eliminating greenhouse gas emissions from the atmosphere. The Indian government, at both central and state levels, acknowledges the importance of promoting green building practices and offers various incentives to encourage their adoption by builders and developers. Key incentives include tax benefits for green building projects, such as lower property tax rates, reduced stamp duty, and income tax deductions for green investments. Additionally, many states provide expedited approval processes for green building projects, minimizing bureaucratic hurdles and saving time and resources for builders. Government agencies also offer subsidies and grants for projects that incorporate renewable energy sources, energy-efficient technologies, and sustainable materials. Furthermore, the Indian government has launched initiatives like the Green Rating for Integrated Habitat Assessment (GRIHA) and provided incentives such as tax benefits and expedited approvals for green buildings, encouraging the industry to embrace sustainable practices. The Indian government also provides tax benefits to developers of LEED-certified buildings through the Income Tax Act. Developers can claim up to 100 percent depreciation on the cost of green building assets, including solar panels, rainwater harvesting systems, and waste management systems. The government has instituted a policy mandating that all government buildings must be certified green and comply with green building standards. Buildings that are certified green are eligible for incentives such as fast-track approvals, expedited inspections and reduced building fees.  
Many states in India have established their own policies and plans to promote green building certification, offering subsidies and tax exemptions to encourage energy-efficient buildings and renewable energy projects. The Maharashtra government offers an additional FAR of 3 percent, 5 percent and 7 percent for Green Buildings rated by IGBC as Silver, Gold and Platinum respectively. The Industries & Commerce Department of the Andhra Pradesh offers 25 percent subsidy on total fixed capital investment of the project (excluding cost of land, land development, preliminary and preoperative expenses and consultancy fees) for buildings which obtain green rating from IGBC.  Tamil Nadu's Industrial Policy 2021 offers a 25 percent subsidy on the cost of setting up environmental protection infrastructure, subject to a limit of Rs. 1 crore, for industrial projects that obtain IGBC green certification. 

Developers embracing sustainability

For building projects with green certifications that utilize alternative energies like solar and wind or incorporate energy-efficient features, the Indian government provides low-interest loans through the Indian Renewable Energy Development Agency (IREDA) for projects. Recently, the government has announced an initiative to solarize one crore homes with an investment of over Rs. 75,000 crore aims to boost sustainability in the real estate sector. Households can receive subsidies up to Rs. 78,000 for solar systems up to 3KW capacity, increasing rooftop solar capacity by 30 GW. Real estate developer Lodha, over the past five years has reduced its scope 1 and 2 emissions by ~82 percent.  Brigade Group has announced an ambitious time-bound target to achieve Net Zero by 2045. To realize this goal, Brigade has prioritized water and waste management, biodiversity initiatives, and reducing greenhouse gas emissions. In pursuit of this goal, Brigade has made significant environmental achievements, including a 7% renewable energy mix, ensuring 100% of new residential projects are IGBC Shell and Core certified, and planting around 80,000 trees to date. The company has increased wastewater recycling by 84% and reduced carbon emission intensity by 15%, in FY23. Brigade’s portfolio accounts for 7 million square feet of green building certifications, with a 25% decrease in carbon emissions intensity (in FY23), and 1,016 tonnes of waste being recycled or reused.  Shriram Properties uses treated water from STP’s for flushing systems and landscape irrigation in their projects. To enhance energy efficiency, the companay utilises LED lights, design buildings with enhanced natural ventilation, and optimize window-to-wall ratios to maximize natural light. They also design solar lights for layout developments and rooftop solar panels for common-use power, supporting our green initiative. Additionally, the company prioritises the use of sustainable materials such as low VOC paints, glass, cement, tiles, adhesives, and composite wood that minimize environmental impact. "Our eco-friendly landscaping features drought-resistant plant species and ensures turf areas constitute no more than 30% of the landscape area. These efforts have earned us the prestigious EDGE Certification for projects such as Shriram Blue, Shriram Southern Crest, and Shriram Park-63," says T V Ganesh, Director & National Head – Technical, Shriram Properties.  Bangalore-based Concorde Group’s projects incorporate a range of sustainable features, including rainwater harvesting, heat island reduction using high-reflective paint and pavers to minimize heat absorption, maximizing natural light to reduce reliance on artificial lighting, and implementing flow control fixtures to minimize water wastage. In their projects they utilize treated water from sewage treatment plants for flushing and landscaping purposes, integrate dual flush closets, sensor-based hand wash faucets, and urinals for efficient water usage, and install building-level energy metering devices to monitor and optimize energy consumption across various inputs such as electricity, natural gas, chilled water, and more. “We harness solar power to reduce overall energy consumption, prioritise indigenous trees and plants, seamlessly integrate green spaces into our project architecture, and employ energy-saving glass in windows to enhance energy efficiency by up to 10-15 percent," says Anil R.G, Managing Director, Concorde.

Winning accolades

India retained its third spot on U.S. Green Building Council’s (USGBC) annual list of Top 10 Countries and Regions for LEED (Leadership in Energy and Environmental Design) in 2023. 248 projects, across both buildings and spaces, were certified for LEED in the country covering 7.23 million gross square meters (gsm). On a cumulative basis, India’s overall commercial projects under LEED stand at more than 2,200 buildings, representing more than 212 million GSM. “With India's rapidly growing urban landscape, the investment in green buildings becomes imperative, which extends beyond resource efficiency and reduced environmental impact; it is a fundamental step towards enhancing the well-being of our communities," says  Gopalakrishnan Padmanabhan, Managing Director – Southeast Asia & Middle East, GBCI.  According to Global Data, the Indian green buildings market recorded revenues of $30.2 billion in 2023, representing a compound annual growth rate (CAGR) of 3.4 percent between 2018 and 2023. The residential segment accounted for the market's largest proportion in 2023, with total revenues of $21.5 billion, equivalent to 71.1 percent of the market's overall value. In 2023, the Indian green buildings market witnessed an annual growth of 3.6 percent due to various government incentives such as tax benefits to developers of LEED-certified buildings and low-interest loans to promote green building and LEED certification.

The rise to sustain

Over the past decade, a significant population increase has fueled rapid urbanization. It is projected that over 40 percent of India's population will reside in urban areas by 2030, and the total urban population is expected to reach three-quarters of a billion by 2050. This growth is anticipated to drive numerous real estate projects in urban areas. The government's incentivization of green building through tax benefits, interest-free loans, and other incentives has reduced the cost gap between traditional and green buildings significantly. With advancements in technology and development, sustainability in real estate is now not just an option but a necessity.

As India progresses towards a more sustainable future, the real estate industry must adopt sustainable practices to minimize environmental impact, improve quality of life, and ensure long-term economic sustainability. While the path to sustainability may pose challenges, the benefits—for both the environment and the industry—are invaluable.

 




  • About Us

    EPC World Media Group is a one stop knowledge information hub for Infrastructure, EPC and Construction sector. It strives to promote, propagate and assist the decision and policy makers from government and private organizations along with the technology developers and service providers to enhance and develop their capabilities. EPC World Media facilitates knowledge transfer to grassroots and strengthens their productivity.....

    Read More.....
  • Featured Videos

  • Connect Us