How the real estate sector in India is helping people to live in eco-friendly surroundings to achieve the net-zero emission target of the country.
According to the NITI Aayog’s projection, the Indian Real Estate sector is expected to reach a value of US$1 trillion by 2030, constituting around 18–20 percent of the nation’s GDP. As the country experiences a surge in development, the construction of infrastructure tends to have an impact on the environment.
To mitigate its contribution to climate change, the Indian Real Estate industry and developers are embracing sustainable construction practices and adhering to guidelines and certifications provided by prominent organizations like the Indian Green Building Council (IGBC) and others. The objective is to create sustainable and eco-friendly living environments, with the aim of positioning India as a global leader in this field by 2030.
Need for the adoption of green energy
India is experiencing a rapid pace of urbanization. As per the 2011 Census, approximately 31.14 percent (377 million) of the population resided in urban areas. However, by 2031, it is projected that the urban population will soar to around 600 million. While cities serve as engines of growth, they also contribute to over 70 percent of India’s greenhouse gas (GHG) emissions.
In order to address this challenge, developers in the country are embracing environmentally friendly construction technologies. It enables the real estate industry to transition towards cleaner and renewable energy sources. According to NITI Aayog, it is estimated that by 2047, electricity consumption in the residential sector will increase tenfold. Given this scenario, the Indian real estate industry plays a crucial role in tackling climate change-related issues, particularly by reducing energy demand, electricity usage for heating and cooling, materials and land utilization, and additional infrastructure needs.
Sustainability gives a higher return on investments
Certified sustainable buildings are commanding rents and capital values that are considerably higher. Occupiers are increasingly drawn to sustainable structures due to their reduced operating and energy expenses. With more businesses committing to net-zero targets, the demand for sustainable buildings is expected to rise, and certified projects are at the forefront of shaping a future for tomorrow. Furthermore, on a global scale, certified projects have demonstrated an increase in capital values and rental yields. They are highlighting the investment potential of properties constructed with sustainability in mind.
Gen Z emphasizes sustainability
There has been a noticeable shift in people’s mindset and lifestyle choices with a heightened awareness of their actions and environmental impact. Presently, the younger generation, known as Gen Z, strongly believes in the power of unity and collective action for the greater good. Globally, around 70 percent of Gen Z actively engage in social causes that have the potential to create a more comprehensive impact on society. This increased consciousness among homebuyers has led to a consistent rise in the demand for environmentally friendly homes.
The Bottom Line
The future of the real estate industry in India lies in embracing green practices and creating a sustainable path for the country. Green building techniques can mitigate the effects of climate change as well as offer several advantages to the occupants. Both the government and developers have acknowledged the significance of green buildings and are taking measures to encourage their construction. With the growing emphasis on sustainability, the prospect of a greener real estate industry in India appears promising.
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