Indian real estate sector, driving sustainable growth
The sector is gradually shifting towards a future where green buildings and adoption of new technologies to limit carbon and other hazardous emissions will increasingly be a larger constituent of their offering.
The Indian real estate sector is a critical component driving our economy. Niti Ayog predicts that it is estimated to reach a market size of US$ 1 trillion by 2030 representing for 18-20 % of India's GDP. Currently contributing to 6-7% of the country’s GDP, the real estate sector is growing at 20% per annum. It is the second largest creator of jobs after the agricultural sector and has a huge multiplier effect on the Indian economy as it spurs demand in over 250 other satellite industries like building materials, paint, brick, cement, steel etc., connected to the real estate sector.
Being a mainstay and the driver of the Indian economy, the real estate sector by virtue of its business accounts for 22% of all the emissions in the country. With the demand for housing in India, especially in the urban areas, expected to grow manifold in the near future, the onus of shaping the narratives for a sustainable future lies squarely with the real estate industry. With the world moving towards adopting a sustainable approach to reduce carbon footprint and avoid catastrophic climate changes, real estate sector too needs to find ways to reduce the impact on the environment.
The COVID-19 pandemic has spotlighted the need to adopt a more sustainable lifestyle that will ensure we live a better earth for the future generations. Increasingly there is a need for urban developments that are built using principles of ESG (Environmental, Social & Governance). Leading real estate players in India like Lodha, Godrej, Tata Realty and Mahindra to name a few have started taking concrete steps towards carbon neutrality. For instance, leading real estate player Lodha, recently announced its announced its commitment to set carbon emissions targets with the Science Based Targets initiative. This is in line with its announcement to go carbon neutral by 2035.
The sector is gradually shifting towards a future where green buildings and adoption of new technologies to limit carbon and other hazardous emissions will increasingly be a larger constituent of their offering. They are working towards reducing their impact by adopting initiatives like sustainable design, conserving natural resources, switching to greener construction technology, optimising use of water, using solar energy, waste composting, water harvesting, to name a few.
The adoption is also fuelled by the consumers who are increasingly conscious of their impact on the environment by moving towards a more sustainable lifestyle. They are willing to pay premium for products and services that align with the vision of sustainability. Further, the sustainable approach towards homes will have both tangible and intangible long term benefits that will result in savings of operational & maintenance costs and other utility expenses. It also fosters adoption of sustainable lifestyle by the residents.
Another area where real estate developers are playing a crucial role is by giving a push to EV infrastructure. The biggest contributor of emissions is vehicular pollution. It is estimated that 75% of India’s population breathes air that exceeds the maximum limit set by the National Ambient Air Quality Standards (NAAQS). Cognisant of the perils of air pollution for its citizens, the GOI too in a bid to mitigate the emissions risk of traditional Internal Combustion Engines vehicles and reduce fossil fuel dependency is promoting the use of electric vehicles and incentivising the ecosystem around it. It is in this context that increasingly real estate developers are building EV charging infrastructure in their developments. Easy availability of charging infrastructure will push more adoption of EVs by consumers.
Disclaimer: This is a company release. No HT journalist is involved in creation of this content.