India’s Green Building Movement in Real Estate
India’s real estate sector is at a crossroads, as the push for sustainability gains momentum across the nation. The Indian government has long recognised the importance of integrating environmental sustainability within the real estate sector, introducing key policies and regulations to foster green building practices. From financial incentives to certification programs like the Green Rating for Integrated Habitat Assessment (GRIHA) and Leadership in Energy and Environmental Design (LEED), India is steadily creating a framework that encourages developers to embrace sustainable construction. Yet, despite these efforts, challenges remain in scaling up these practices across diverse urban landscapes.
The Energy Conservation Building Code (ECBC), launched by the Bureau of Energy Efficiency (BEE), has set new benchmarks for energy efficiency in buildings, ensuring that all newly constructed structures adhere to stringent energy-saving standards. While the ECBC has certainly driven change, the impact remains limited, with the adoption of these guidelines being relatively slow in non-metro cities. In India’s major urban centres, the pace of compliance has been faster, but developers still face significant hurdles in terms of implementation costs and awareness, particularly in smaller cities. However, with the green building market projected to grow at a compound annual rate of 20% between 2021 and 2026, the real estate sector is moving in the right direction, albeit at a gradual pace.
Government initiatives such as the Smart Cities Mission and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) provide crucial support to urban infrastructure development, emphasising sustainable, inclusive urban planning. These initiatives aim to overhaul 100 cities under the Smart Cities Mission and improve basic infrastructure in 500 cities under AMRUT. As of December 2023, over 6,400 projects worth INR 1,25,105 crore have been completed under these schemes, indicating a growing commitment to sustainable urbanisation. Yet, the challenge remains in bridging the resource and awareness gap between major cities and their smaller counterparts. Many small and medium-sized cities still struggle to adopt eco-friendly practices due to limited budgets and a lack of technical expertise.
Financial incentives also play a pivotal role in promoting sustainability within real estate. For instance, green-certified affordable housing projects are exempt from the Goods and Services Tax (GST), incentivising developers to integrate energy-efficient and water-conserving technologies. However, experts argue that more robust policy measures are needed to accelerate this transition. Proposals include subsidised loans for green construction, tax incentives for renewable energy adoption, and grants under schemes like the Pradhan Mantri Awas Yojana (PMAY) Urban. Such measures would reduce the financial barriers developers face, making sustainable construction more financially viable.
Sustainability in real estate is not just about cost savings or compliance; it is a moral imperative in the face of global climate change. Urban areas, responsible for a significant portion of the world’s energy consumption and greenhouse gas emissions, are at the heart of the battle against environmental degradation. India, as one of the world’s fastest-growing economies, has a crucial role to play. The choices made today in urban development will determine the livability of cities for future generations. As developers adopt innovations such as Building Information Modeling (BIM) and the Internet of Things (IoT), the potential to optimise resource usage and improve energy efficiency is immense. These technologies will revolutionise the way we design, build, and live in cities, ensuring that growth does not come at the expense of the planet.
Ultimately, India’s journey towards sustainable real estate offers a unique opportunity to redefine urban living. By aligning environmental stewardship with economic viability and social inclusivity, the country can create resilient cities that can withstand the challenges of climate change. As awareness grows, and technological innovations continue to emerge, India has the potential to become a global leader in sustainable real estate. The road ahead may be complex, but the rewards are significant: reduced environmental impact, enhanced quality of life for urban residents, and a more prosperous, sustainable future for all. The momentum is building, and with continued policy support and collaboration between stakeholders, India is taking decisive steps toward a greener, more sustainable urban future.
