Rise in Demand for Green and Sustainable Buildings – Global and Indian Perspective

New Delhi, December 8, 2023: The Royal Institution of Chartered Surveyors (RICS) has published its global sustainability report for 2023. The publication outlines the state of the world’s green and sustainable real estate and investor interest in acquiring and developing it. The global and UK markets are experiencing a significant rise in demand for green and sustainable buildings, a trend that is particularly strong in India. 

With the construction of 10 million new homes annually, India presents immense potential for green building development in both residential and commercial sectors. Currently, over 40% of India’s commercial Grade A office stock is green certified, with projections to surpass 50% in the next decade, aligning with global Environmental, Social, and Governance (ESG) trends. The BRSR framework by SEBI, mandating ESG disclosures, is driving transparency and accountability in sustainable practices.

Tina Paillet, President-Elect at RICS, emphasizes the critical role of sustainable real estate in addressing global emissions: “The built environment is a major contributor to carbon emissions. It’s imperative to reduce embodied and operational emissions from buildings and infrastructure. RICS is at the forefront, developing green standards such as the Whole Life Carbon Assessment to guide the industry towards sustainability and decarbonization.”

India’s commitment to sustainable infrastructure is further supported by government initiatives and private sector efforts. The Bureau of Energy Efficiency’s standards and state-specific incentives for green buildings are notable examples. Additionally, financial trends indicate a growing interest in green financial products and investments.                                                                                                                     

India also faces unique challenges, such as the need for climate-responsive construction techniques in high-density urban environments and addressing air pollution. Innovative approaches like district cooling systems are being explored to efficiently meet large-scale space cooling needs. 

Overall, as the global and UK markets progress towards sustainable building, India’s unique market dynamics and policy frameworks position it as a key player in the global movement towards sustainable infrastructure.