How Sustainable Living Is Setting the Direction for the Next Phase of Urban Growth
By Preksha Singh, CEO, Agrasheel Infra
For anyone tracking where real estate demand is heading, one thing is becoming increasingly hard to ignore: sustainability is no longer a checkbox. It is becoming the primary lens through which buyers, investors, and occupiers are evaluating where they want to be.
This is not a new conversation, but it has matured considerably. A few years ago, a green-certified building or an EV charging bay was enough to stand out. Today, those are entry-level expectations. What the market is now asking for goes deeper: planned communities, access to open spaces, reduced commute pressure, energy efficiency built into the design rather than bolted on afterwards. The bar has moved, and it is not moving back.
According to CREDAI-Colliers’ “Sustainability in Real Estate: Towards a Greener Skyline” report, as of 2024, more than 2 million residential dwelling units, 6,500 commercial projects and 750 industrial projects were green-certified, and sustainability adoption is likely to pick up pace across real estate segments in the coming years. Developers and occupiers are increasingly opting for sustainable, energy-efficient buildings to align with climate targets and net-zero commitments.
What makes the current moment particularly interesting is where this demand is surfacing. The metros have always led the conversation, and they continue to do so, but the nature of that leadership is changing. Delhi, Mumbai, and Bengaluru are no longer just expanding; they are recalibrating. ESG-aligned office spaces, energy-efficient residential developments, and smarter mobility infrastructure; these are increasingly the baseline in established markets, which means differentiation has to come from execution quality, not just product features.
The more compelling opportunity, however, is in tier 2 cities. And not because land is cheaper, though that matters, but because these markets offer something the metros genuinely cannot: the ability to get the planning right from the outset. When you are developing in a city that is still defining its growth trajectory, you have room to design for liveability, to integrate green spaces, to calibrate density in ways that actually serve residents rather than just maximise FSI. That flexibility is a significant advantage, and buyers are beginning to recognise it.
Lucknow is a case worth paying attention to. The governance improvements visible on the ground: cleaner public infrastructure, more organised civic services, better-maintained roads and public spaces are not cosmetic. They signal a city that is investing in the quality of its urban environment. For a developer, that matters enormously. The best-designed project underperforms in a poorly managed city. When civic execution improves, it validates the investment and supports long-term value for the end-user.
The investment landscape is reflecting this shift. Institutional capital continues to flow into metros, as it always will. The depth and liquidity of those markets are hard to replicate. But a widening base of investors is looking seriously at tier 2 opportunities, drawn not just by entry economics but by the trajectory. Markets that are growing thoughtfully, with improving infrastructure and governance, tend to deliver more predictable returns over time. The risk profile is different, and for many investors right now, that difference is a feature, not a concern.
For developers, this convergence of sustainability, governance, and buyer awareness is not a challenge to navigate; it is a direction to build toward. The projects that will hold value over the next decade are the ones being planned today with liveability at their core, not as an aspiration but as a design brief. Whether in an established metro or an emerging city finding its footing, that principle holds.
The market has made its preferences clear. The question now is simply who is ready to meet them.
Disclaimer: Views expressed in this article are those of the author, and not necessarily of Realty&More.
