5 Sustainable Practices That Make Your Property More Marketable and Attractive to Investors

In many industries, including real estate, sustainability has become an urgent issue due to climate change, environmental degradation and population explosion in India. Since the real estate sector contributes significantly to the country’s emissions – estimated at over 22% – incorporating sustainable practices is not only beneficial but essential for survival and competitive advantage.

The urgency of this matter is underlined by the broader context of the Paris Agreement’s goal of limiting global temperature increase to 1.5 degrees Celsius and India’s commitment to achieve net-zero greenhouse gas emissions by 2070.

Also Read: Will Indian Real Estate Sector Fulfill Viksit Bharat Promise?

In addition, environmental, social and governance (ESG) criteria are becoming critical factors in investment decisions, reflecting a shift towards more ethical and environmentally conscious investing. The real estate market has responded by continuously integrating ESG objectives into business strategies, increasing both market value and attractiveness to investors.

Hence, many real estate players are implementing the following sustainable practices to support the growth of green building and sustainable urban planning in India.

1. Green Certification

Green building rating systems such as Leadership in Energy and Environmental Design (LEED), Green Rating for Integrated Habitat Assessment (GRIHA) and WELL are driving property sales. Properties with these certifications are not just buildings; they are sustainability benchmarks that promise reduced operating costs and optimal living conditions. A joint report by KPMG and Colliers states that green buildings can reduce emissions by 35% and maintenance costs by 20%.

2. Ecological building materials and green spaces

Choosing non-toxic, recycled or sustainably sourced building materials resonates well with eco-conscious consumers. Materials such as bamboo flooring, recycled steel or low-VOC paints not only reduce the environmental impact of the construction phase, but also contribute to healthier indoor air quality, a highly valued feature in the luxury residential segment.

Developers should also look to develop and use new bio-based building materials with a low carbon footprint, such as mycelium and hemp. Furthermore, integrating biophilic designs that involve creating strong connections between nature and the built environment through landscaped gardens, internal courtyards, and vertical greening is particularly appropriate in urban areas where green space is often limited.

3. Energy efficiency and renewable energy integration

Energy-efficient construction combined with renewable energy sources such as solar panels are key differentiators in the market valuation of a property. Smart HVAC systems, cellulose insulation and energy-efficient lighting are fundamental to reducing the carbon footprint and operating costs.

The International Finance Corporation (IFC)’s EDGE (Excellence in Design for Greater Efficiencies) framework exemplifies these changes, providing a measurable roadmap for energy and water efficiency in buildings to achieve global sustainability standards. Internationally, green energy credits, Green Tariffs, net settlement, and virtual power purchase agreements (VPPAs) have been introduced under the Greenhouse Gas Protocol to promote the use of renewable energy.

4. Water saving systems

Water scarcity is a critical issue in many parts of India, making water conservation a notable feature of any sustainable residential property. Rainwater harvesting systems, water-saving devices and innovative wastewater treatment plants that recycle water for landscaping and other non-potable uses are very attractive to eco-conscious buyers. Buildings equipped with these systems demonstrate foresight and responsibility that are valued in the residential segment of the market.

5. Smart home technologies based on artificial intelligence

AI-powered technology that allows residents to efficiently manage energy and water usage adds a layer of convenience and further enhances the sustainability of residential properties. Smart thermostats, automated lighting systems, energy audit devices and water leak detection systems are popular developments that tech-savvy consumers prefer to minimize their environmental impact while enjoying modern conveniences.

Implementing these practices benefits all stakeholders as they not only future-proof their investments but also make properties more valuable in a competitive market, attracting discerning investors and residents alike.

It also positions the Indian real estate sector as a future-proof global leader in sustainable practices. However, the most promising aspect of prioritizing sustainability in real estate is that it comes closer to achieving economic stability, environmental responsibility and social well-being, factors that will determine India’s growth trajectory.

-The author is the founder and CEO of Property First. The views expressed are personal.

first published: Jul 6, 2024, 11:34 IST