India’s Real Estate Sector Embraces Sustainability: Savills Report

Over 7,000 IGBC Green-Certified Projects Across Top 15 States and UTs

New Delhi, September 3, 2024: Green-certified buildings are at the forefront of this transformation, setting new standards in the use of sustainable materials, energy-efficient technologies, and water conservation practices. These buildings contribute significantly to reducing the carbon footprint and advancing the United Nations’ Sustainable Development Goals (SDGs). India has seen a substantial increase in green building certifications, with over 7,000 IGBC-certified (The Indian Green Building Council) projects covering an estimated 1,370 million sq. ft. of built-up area, a report, Sustainable Real Estate: Strategies and Practices, by global real estate advisory firm Savills India, said.

The report identifies several clusters based on the average project sizes:

Decarbonizing Real Estate Assets

Decarbonizing assets is a pivotal strategy in combating climate change. The report emphasizes the importance of addressing both embodied carbon emissions from building materials and operational carbon emissions from building operations. Government policies, regulations, incentives, and initiatives are crucial in guiding and supporting the transition to low-carbon, energy-efficient buildings.

The concept of green leases is gaining momentum in India, with landlords and tenants collaboratively setting sustainability-linked targets. The report identifies four key pillars for achieving sustainability goals in commercial real estate: shared responsibility, data sharing, financial incentives, and behavioural change.

“Aligned with the government’s vision to achieve its net-zero goals, the real estate sector plays a pivotal role in driving sustainability. Our report outlines actionable strategies and innovative approaches that can help industry leaders foster a more sustainable future. By adopting these strategies and leveraging green technologies, we can build an environment that is both eco-friendly and economically resilient. The report offers valuable insights for industry stakeholders, policymakers and investors, paving the way for a greener and more sustainable future for India’s real estate landscape.” said Anurag Mathur, Chief Executive Officer, Savills India.

India’s journey towards sustainability in the real estate and construction sector is in its early stages, marked by significant progress and considerable challenges. To meet and exceed modern sustainability standards, greater public and policymaker awareness is essential. This must be coupled with decisive action to craft and enforce forward-looking policies that incentivize sustainable practices and drive innovation in sustainable development, a press statement from Savills India said. 

As one of the major contributors to greenhouse gas emissions, the real estate sector is undergoing a significant transformation in India. The report emphasizes the urgent need to integrate sustainable materials and energy-efficient technologies at every stage of development to effectively combat climate change, the statement added.