Sustainable real estate for a promising future

We have found a way to conserve and find alternatives for all kinds of non-renewable resources; electricity can be generated by hydro power, and engines can run on solar power. But one resource that cannot be expanded, and that has no alternative is land. With the population growing, the demand for land is on the rise the world over. But however much we try, we’ve only got so much of it and need to find a way to make the best use of it. While it looks like we have a lot of it, we can’t keep eating into the wetlands and farmland, neither can we support excessive reclamation of land, leaving us with limited habitable land. So, what we need is condensed development in the major metro cities that can meet the needs of the growing housing and office demand.

While we make valiant efforts to reach new levels of development, we have become one of the largest contributors of carbon emission in the world. As the world collectively takes notice of the harm being caused to the environment, global leaders have begun to put policies in place that will allow us to, in some capacity, reverse the damage done and preserve the environment for future generations. Here is where the real estate industry can play a significant role in achieving the desired results. In this year’s budget, the government allocated over INR 3,000 crore towards the Climate Change Action Plan and the RBI has highlighted the importance of Green Finance, the financial arrangements made for environmentally sustainable projects including those that address climate change. The prerequisites for green finance include adoption of green energy ratings, voluntary green funding targets, and refurbishing of existing developments, among others.

The International Finance Corporation (IFC) estimates the total investment opportunity for the green building sector in India to be USD 1.4 trillion by 2030. This is expected to be fueled by rapid urbanization, policy incentives for green buildings, and the demand for affordable housing. Additionally, the launch of EDGE (Excellence in Design for Greater Efficiencies) allowed businesses to learn about financial planning for green projects and how to secure green finance.

With many green building projects, green building certifications, and new energy efficient systems, these efforts and initiatives are a step in the right direction. Eminent developers across the countries have given the lead towards bringing about a progressive change in the real estate industry - CapitaLand secured green loans to develop 3 green-certified technology parks in India as a part of their 2030 Sustainability Master Plan, Lodha group announced Lodha Net Zero Urban Accelerator - an initiative to achieve carbon neutrality by 2025, and Mahindra Lifespaces launched net zero homes in Bengaluru in 2022, which are certified by the Indian Green Building Council (IGBC).

It has been said many times that we must leave the earth a little better than when we walked it. We don’t own this land; we’re merely visitors. So, while we use it to build and rebuild our homes and workspaces, we must be aware of the sustainability of the project. Today, the real estate industry has immense potential to control our carbon footprint. Here are some of the green practices that will work towards decarbonization.

-?????????Add green buildings to the REIT portfolio

-?????????Secure certifications such as IGBC, GRIHA or LEED

-?????????Undertake building refurbishments

-?????????Develop renewable energy infrastructure within projects

-?????????Icentivise and encourage real estate projects that adopt green initiatives

This year, the Indian #realestate sector is inching towards 40 million sq.ft. of office space and 100 million sq.ft. of residential space, so robust policy frameworks and guidelines for development of green buildings as well as green financing are essential. It’s reassuring that these policies are being adhered to by the major players of the industry, and with these sustainable projects, we can look forward to a promising future.?

#Sustainability #greenbuildings #greenenergy #ESG #IndiaRealEstate #Buildings