Explained: The Future of Sustainability in Real Estate and Its Importance

According to a recent report from NASA, since 1880, the average global temperature has increased by over 1°Celsius/2° Fahrenheit. If this statistic does not bring home the impact of global warming, all we need to do is tune in to the daily news. Soaring summer temperatures, melting ice caps, rising sea levels, flash floods, and short but intense winters are now global phenomena. Sustainability is no longer a topic to be debated in intellectual circles; it is an actionable goal for every person. If there is one thing we have learnt from the recent pandemic and the change in global cues, we must work to find balance in our lifestyles and live in harmony with the environment. Like most ideals, this must start at home. Pun aside, we must start looking at how our real estate sector functions and moderate construction activity to become clean, green, and sustainable.

The Built World and the Environmentre

The US Energy Information Administration says the built world is responsible for over 40% of global carbon emissions. A closer look at major Indian cities like Mumbai, Delhi, Chennai, Bengaluru, and Kolkata rank among the world's most polluted cities. Air, water, and environmental pollution are major concerns in India's burgeoning cities. It is no coincidence that the demand for housing is highest in these cities. In fact, the real estate sector and construction activities contribute to over 22% of the country's total carbon emissions.

If the real estate sector is a major contributor to environmental pollution, the solution also lies within.

Real Estate Sector and Sustainability

Real estate development companies are increasingly adopting environmentally sustainable practices, reducing carbon emissions, and making construction and living in these structures energy efficient. Let us take a look at some of these practices –

• Vision to practice - Most developers have vision and mission statements about being eco-friendly. Construction practices start to become green only when the project planning and operational reviews involve measuring carbon emissions.
• Sourcing practices – One of the main aspects of achieving sustainability and reducing toxic waste is opting for ergonomic building materials. This initiative must start from the planning and design stages and actively check the quality of materials sourced for compliance.
• Energy utilisation - Construction companies can help make a significant difference by procuring clean energy from renewable sources. In the construction process, they can also include green sources for generating energy that the residents can later utilise. Large solar energy production units are ideal for these purposes.
• Providing green amenities – Environment-conscious construction companies offer sustainable solutions for mid and large-scale projects. These include rainwater harvesting systems, onsite waste management and recycling units, energy-efficient HVAC units that complement natural ventilation and lighting designs, and large green spaces.

Government-backed incentives for going green

Both the central and state governments have devised several schemes to boost eco-friendly construction practices and the development of green projects across the country. Some state governments nationwide are now offering developers incentives to construct green buildings. States like Punjab, Rajasthan, West Bengal, and Maharashtra offer between 3 and 10% additional Floor Area Ratio (FAR) for buildings certified Gold or above by the IGBC. States like Kerala offer up to a 20% reduction in property taxes for IGBC-certified buildings. In addition, the central government routinely offers subsidies for industries manufacturing solar panels, energy-efficient home devices and HVAC systems.

The Growing Demand for Green Housing

While industry self-regulation and government incentives can be motivating factors, market forces such as demand for green homes can affect great change. However, real, meaningful change can only come when the Indian homebuyer places the need for a sustainable, green home over all other considerations. And this has started to happen. Real estate investors are now looking for the lifestyle green homes can provide them. From energy efficiency to solar rooftops, from smart waste management systems to community composting, green areas and waterfronts to water recycling units - the modern homeowner wants a home that will contribute towards a better environment and healthier living conditions for the community.

Blox Goes Green

Top real estate players throughout the food chain - from construction to homeowners - must get involved in the growing movement towards sustainability. "It is not a question of sustainability in real estate. The fact is, sustainability and eco-friendly practices are the future of real estate. We have to embrace this fact to remain relevant. By partnering with some of the leading developers in India who have set benchmarks in green practices, we at Blox are growing our vision of becoming a conduit in this path to environmental preservation and energy efficiency", said Aditya Jhaveri, the CEO and founder of Blox.