The real estate industry has long contributed to the expansion of the national economy as the second-largest source of employment. People's growing awareness of the value of home ownership has caused a structural change in housing demand, which has further boosted the industry.
A recent analysis by Infomerics Valuation and Rating, titled "Real Estate Business: Outlook and Challenges," which claims that the Indian real estate industry is on course for sustained high growth at over 75% Y-o-Y for the next three years, validates the same. The industry is anticipated to reach a $1 trillion market size by 2030 and contribute 13% to the GDP by 2025, according to an IBEF report. Green buildings can save up to 30% of energy and 50% of water, according to studies. During the actual construction phase, builders can switch to renewable energy sources.
With this level of development, there has never been a better chance to switch from outdated, resource-intensive development methods to ones that are more environmentally friendly and low-carbon. In this crucial decade, when the most vigorous decarbonization is required, there is no need to lock in enormous volumes of carbon emissions through urbanization. Additionally, the UN Environment Programme estimates that almost 40% of all worldwide carbon emissions are a result of the building industry. Therefore, due to its inherent existence across all sustainability-driven concerns, real estate can be the catalyst for significant change.
There is a discernible trend among modern customers to live sustainably. In addition to favouring green-certified buildings from grade A developers, informed and responsible homeowners are increasingly adopting eco-conscious real estate alternatives. In the past ten years, India's top six cities—NCR, Mumbai, Pune, Hyderabad, Bengaluru, and Chennai—have seen a 31% growth in the amount of green real estate assets. Green buildings can save up to 30% of energy and 50% of water, according to studies. Green buildings are resilient to climate change, use less water, use energy efficiently, save natural resources, produce less waste, and promote biodiversity. This is accomplished through sustainable design, construction, and operations. As a result, they guarantee a higher liveability quotient by offering superior air quality, appropriate lighting, better ventilation, and general well-being.
Additionally, from an economic perspective, green homes offer higher returns on investment, increased asset or rental values, property tax rebates, and cost savings on recurrent expenses like power, water, medical, etc. Developers must establish decarbonization goals that are supported by research. Additionally, these goals encourage competition and innovation in the industry.
In the end, conserving resources lowers expenses, increases the development's and the developer's resistance to changes in policy, unlocks value, and ensures growth into the future. When assessing the physical climate hazards that may influence the region in which they are building real estate, developers must also take climate science into account. Successful pilot programmes can offer chances to scale up workable technologies and reduce emissions significantly. The entire procedure may be designed to comply with globally accepted accounting and reporting standards like the GHG Protocol. It's crucial to consider the full construction lifecycle in this regard since it may assist establish precise goals for each effect category and project stage.
Leading developers may also change energy consumption to renewable sources during the actual construction phase to reduce GHG emissions and green the project’s lifetime. When developing green projects, it is important to keep circularity principles like "reduce, reuse, recycle" at the forefront and use more environmentally friendly building materials. In order to promote and reward sustainable business practices in the real estate industry, the government and regulatory organisations have also taken a number of actions. The central government has allocated 19,500 crores in the Union Budget 2022 to promote the production of solar modules under its flagship PLI (production-linked investment) plan. Developers working on climate-adaptive and environmentally friendly developments are being rewarded by both government policy and investors' attention.
Additionally, a collaborative ecosystem is required to meet sustainability goals, with local regulators, together with investors, landlords, and occupiers, playing a critical role in facilitating the decarbonization of the built environment. Increased stakeholder participation promotes faster progress toward reaching net-zero goals. The notion of sustainability as an economic risk has taken centre stage in boardrooms as the phrase "planet above profit" has gained popularity. Green buildings that are developed responsibly can make a substantial contribution to India's goal of decreasing its overall carbon emissions by one billion tonnes by 2030 and achieving its net-zero aim by 2070. According to a JLL research titled "Sustainable Real Estate: India's reaction to a greener future," 81% of respondents believe real estate can revolutionise efforts to advance sustainability.
As a rapidly transforming corporate landscape looks to align itself with the low-carbon economic agenda by adopting aggressive net-zero carbon goals, the real estate industry must stay afoot and be at the centre of these systemic developments for a greener future. Agrawal Construction Co. has the same goal for the urban landscape as Green Building Projects. We are a major real estate developer in Central India. We are dedicated to developing residential developments that exemplify sustainable dwellings. Our expertise as a builder in the real estate sector extends more than 30 years, yet we remain at the forefront of new changes in the business and adapt to them. In our next phase of development, we are creating living spaces that are equipped with smart technology, and cutting-edge facilities, and are ecologically integrated. These enhancements to the projects assist you in selecting a home that has a great blend of modernism and pleasant living.