Decarbonizing Indian Real Estate: Building Resilience and Securing Sustainable Investment for a Climate-Ready Future

The Indian real estate sector stands at a crossroads, confronting both the challenges and opportunities that come with a rapidly changing climate. As climate change intensifies, real estate in India is directly impacted by rising temperatures, increased storm severity, and heightened risks of water scarcity. For real estate stakeholders, these changes underscore the need to build climate-resilient, sustainable structures that not only reduce emissions but also attract forward-looking investment.

The Push Toward Net Zero in Real Estate

Achieving Net Zero means reducing GHG emissions across the building lifecycle—from construction and operation to eventual deconstruction. Unlike the traditional reliance on offsets, Net Zero in real estate emphasizes minimizing emissions at every stage. For Indian real estate developers, the path to Net Zero can begin with designs that prioritize energy efficiency, integrate renewable energy sources, and utilize sustainable materials. With most Indian cities experiencing average temperatures above 29°C, efficient, climate-conscious buildings are essential to ensure livability, lower energy consumption, and attract investment.

Future-Proofing Real Estate

The GRESB has become an increasingly important tool for assessing the sustainability of real estate assets, influencing both investor decisions and property valuations. Indian real estate developers aiming to future-proof their assets can look to GRESB as a framework to enhance ESG performance. Incorporating GRESB standards can bolster a property’s appeal to investors who prioritize ESG factors, positioning the sector as a leader in sustainable investment. For developers, this also means refining energy efficiency measures, adopting innovative technologies, and prioritizing sustainable materials in their projects.

Health and Livability in a Warming Climate

As climate change heightens health risks, particularly in urban areas, buildings must adapt to new standards for ventilation, insulation, and cooling. According to the 2023 Lancet Countdown Report, heat-related illnesses and productivity losses are projected to increase across India due to higher temperatures, underscoring the need for climate-ready buildings. By designing for resilience, real estate stakeholders can contribute to healthier living environments while also ensuring long-term asset stability.

Aligning with India’s Climate Strategy

The real estate sector’s alignment with national climate goals is essential for broader climate resilience. India’s commitment to climate action, reflected in its updated NDCs, emphasizes the importance of low-carbon buildings. As one of the most significant sectors contributing to urban emissions, real estate is positioned to make impactful contributions to India’s climate targets. By setting Net Zero targets and adopting sustainable building practices, the sector can enhance resilience against climate shocks, protect asset values, and support India’s broader climate ambitions.

As climate risks rise and regulatory expectations increase, Indian real estate’s journey to sustainability is a critical path toward future-proofing both assets and investments. By adopting GRESB-aligned practices and embracing Net Zero goals, the sector can play a central role in India’s climate resilience strategy, driving meaningful change for a sustainable, resilient future in Indian real estate.

https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(23)01859-7/