Green buildings lure premium buyers

Green seems to be the latest buzzword in the construction industry.

Green seems to be the latest buzzword in the construction industry. “There are 1,046 green projects currently underway across India,” said Shabbir Kanchwala, vice-president, project coordination, K Raheja Corp, which is developing six commercial green projects in Mumbai. “Spaces in these buildings cost marginally more than regular projects.”

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“Today a green property is priced 2-25% higher, depending on the rating,” said Gulam Zia, national director, research, Knight Frank. “The ratings are based on guidelines set out by Leed-India, run by the Indian Green Building Council and based on a system developed by TERI and the ministry of new and renewable energy.”

As recently as 2000, buyers had to pay about 30-40% higher for green buildings.

“Though the initial cost for developing a green building may be higher than that of conventional buildings, the long-term benefits are many. This extra cost can be recovered in 2-3 years through energy savings and low maintenance costs,” said Brotin Banerjee, managing director and CEO, Tata Housing.

“There is a huge demand for such properties, especially among business houses who work with western clients,” Zia added.

Wipro, ITC, Infosys, Oracle, Microsoft, Cognizant, ABN Amro and TCS are developing energy-efficient office spaces, campuses and special economic zones.