Climate change, which has been a peripheral concern for a long, has become top of the agenda for almost all industries. There is swift and consistent action being taken with net zero commitments, regulatory standards and protocols, emission laws and all stakeholders demanding action towards this common goal.
The story in real estate construction is no different with notable consciousness and interest among investors, property owners, and policymakers who are progressively advocating for transformative changes in real estate and a dynamic landscape of climate-positive initiatives.
According to the Indian Brand Equity Foundation (IBEF), the Indian real estate market is projected to reach a value of $1 trillion by 2030 and contribute 13 per cent to the country’s GDP by 2025. With such growth prospects, real estate developers and the industry as a whole have a unique opportunity to ensure that this expansion generates a positive ripple effect on both the economy and the environment, particularly by effectively managing the escalating carbon emissions.
Numerous media reports estimate that more than 50 per cent of India’s real estate stock for 2030 remains unfinished, and buildings account for one-third of global emissions. Consequently, the real estate sector possesses significant potential to embrace climate-positive practices, simultaneously mitigating rising energy demands while experiencing exponential growth.
How Can We Decarbonise Real Estate Construction?
Focus on Energy Efficiency: Integrating sustainable practices into property development, construction, and maintenance procedures is essential to minimize environmental impact while simultaneously achieving long-term cost savings. Embracing energy management systems, adopting renewable energy sources like solar panels, and implementing efficient HVAC (Heating, Ventilation, and Air Conditioning) systems are widely recognized as effective sustainable practices.
By reducing energy consumption, organisations can not only lower operating costs but also contribute to a significant reduction in their carbon footprint. It is crucial to prioritize energy efficiency considerations from the early stages of planning and design to ensure that infrastructure and buildings are developed with sustainability in mind.
Encourage Holistic Community Development: Effective collaboration between city planning and residential construction can pave the way for sustainable development initiatives. One promising avenue is the promotion of Transit-Oriented Development (TOD), which offers mutual benefits. By situating real estate developments near public transportation hubs, reliance on private vehicles can be reduced. Simultaneously, strategic planning of public transportation hubs in proximity to townships and residential communities improves accessibility, minimizes traffic congestion, and contributes to a more sustainable transportation system.
Furthermore, in a country where strong emphasis is placed on communities and neighbourhoods, there exists an opportunity to engage with local residents and invest in community infrastructure to foster a sense of belonging and shared responsibility. Integrating green spaces, gardens, and sustainable landscaping into property designs further adds value. Not only do these areas enhance aesthetic appeal, but they also provide recreational opportunities for residents while supporting biodiversity conservation efforts.
Make Value Chain Sustainable: To ensure the integration of sustainability throughout the real estate value chain, it is crucial to address the various stakeholders, parties, and activities involved in a diligent and original manner. Key measures to achieve this objective include conducting thorough due diligence, embracing sustainability codes of conduct, and collaboratively establishing sustainability objectives while carefully selecting appropriate vendors and partners.
This necessitates the implementation of a comprehensive stakeholder engagement and awareness initiative, encompassing employees, customers, partners, and investors. These changing perspectives around sustainability also reflect in the improved financial valuation of buildings. World Economic Forum estimates that sustainable buildings provide a ‘green premium’ which translates into a 6 per cent increment in rent and a sales premium of 7.6 per cent.
Research and Development: To meet carbon emissions goals, and stay ahead of the curve, developers can invest in research and development of newer, more sustainable construction methods. By embracing innovation in construction materials, implementing efficient resource management systems, weatherising buildings, and purposefully incorporating green spaces, builders and developers can seize numerous opportunities to enhance occupant well-being and distinguish themselves from competitors.
Ultimately, our cities are our hope and by adopting these strategies, businesses in the real estate industry can make their operations more climate positive, contribute to social well-being, and create more sustainable and resilient cities and future.
(The author is the chief executive officer of Magicbricks)
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