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Sustainable development

India's Real Estate Industry Embraces Sustainability, but Questions Remain

Strategic Insights

— 2 min read

As the world grapples with the growing threat of climate change, the Indian real estate industry has taken a significant step towards embracing sustainability. Gone are the days when luxury was associated with opulence; today, green is the new luxury. Housing projects now incorporate green construction practices, renewable energy, and reuse, making sustainability a new amenity. The Green Affordable Housing Rating has been introduced by IGBC to encourage this trend.

However, despite the growing awareness, statistics paint a dismal picture. Over 70% of buildings that should be completed in India by 2030 have yet to see the light of day. In contrast, the UK has already completed more than 80% of the buildings that need to be built by 2050. Santhosh Kumar, vice-chairman of ANAROCK Property Consultants, asks a poignant question: "Real Estate Vs the Environment: Who's Winning in India?"

Key Takeaways:

  • Over 70% of buildings that should be completed in India by 2030 have yet to see the light of day.
  • Indian cities generate massive amounts of waste, and buildings consume 40% of energy, 30% of raw materials, 20% of water, and 20% of land-use.
  • Buildings in India generate 40% carbon emissions, 30% solid waste, and 20% water effluents.
  • The Indian real estate industry has a dismal track record of self-regulation in environmental management.
  • Realtors have taken a plunge into green living, with some builders incorporating sustainable design, solar energy, waste composting, and water harvesting into their projects.
  • The union budget has been high on sustainability, climate action, e-mobility, energy efficacy, and carbon emission, with an additional Rs 19,500 crore for the Production Linked Incentive (PLI) to facilitate domestic manufacturing of high-efficiency solar modules.

Statistics:

  • 70% of buildings that should be completed in India by 2030 have yet to see the light of day.
  • 80% of buildings that need to be built by 2050 have already been completed in the UK.
  • Indian cities generate massive amounts of waste, with buildings consuming:

+ 40% of energy

+ 30% of raw materials

+ 20% of water

+ 20% of land-use

  • Indian cities generate:

+ 40% of carbon emissions

+ 30% of solid waste

+ 20% of water effluents

  • The Indian government has set an ambitious goal of installing 280 GW of solar capacity by 2030.

Sources:

  • Santhosh Kumar, vice-chairman, ANAROCK Property Consultants
  • Aniruddha Deshpande, MD, City Corporation
  • Vineet Goyal, joint managing director, Kohinoor Group
  • Amol Ravetkar, CMD, Ravetkar Group
  • Shashank Paranjape, MD, Paranjape Schemes
  • Dr Gaurav Somani, MD, Calyx Group
  • Union Budget 2023

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