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Is Green Housing the future of Real Estate in India?

Today, the world observes India as a land of opportunity for investment and business. Everyone needs a home to live in. And that’s the reason real estate is still booming in India. Though the concrete residential projects have increased, besides looking for the luxury properties in Pune, home buyers are paying more attention to green sustainable homes. People are recognizing the important link between green properties, cost savings and healthy living. Environmentally sustainable buildings are slowly becoming an integral part of the construction industry. Buyers have a choice to buy a house that has a minimal environmental impact.

What is exactly a Green Building?

A green building is a structure that uses less water, optimizes energy consumption, generates less waste, conserves natural resources and provides healthier living space to the dwellers as compared to the standard buildings.

22% of India’s total annual carbon emission is contributed by India’s growing housing sector. And it is surprisingly one of the highest contributors. The buildings account for 40% of the total energy consumption in India, out of which the residential projects account for approximately 60%. Hence, it is vital to move towards sustainable development for the real estate industry.

Some of the advantages of Green Buildings are:

Health and Wellness: Several studies and research have shown that people staying in green homes suffer less respiratory problems as compared to dwellers in conventional buildings. So, respiratory problems drop in green housing.

Eco-friendly: Saves a huge amount of natural resources. Using renewable resources for construction, reuse and recycling.

Increased revenue: The added cost of Leadership in Energy and Environmental Design (LEED) certification is about 2-5% of the overall cost of the building. The developer can charge for “Green Building” certification but the consumer will, in turn, have higher resale value and rental yields.

Lower costs: Green building saves 30- 40% of the power consumption. Hence, there will be a reduced electricity bill. The homes also require 20-30% less water.

Government Incentives: The construction of green buildings brings good incentives from the Government to the developers that add to the value proposition for them. This incentive can be in the form of tax or premium rebates that depends upon the conditions under rating programs.

Owing to rapid urbanization and increased housing projects, India is currently witnessing a construction boom. In 2001, when the Indian Green Building Council (IGBC) was established, only one green building marked the beginning of sustainable buildings but now there are more than 2100 IGBC-certified constructions. The overall benefits of green constructions, mostly depend on the time of its designing and initial planning. However, the emerging luxury homes in Pune are focusing more on the sustainable green housing concept.

Stay tuned for more on the benefits of Green Buildings and how the green buildings are the future of real estate in India…

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