Balancing Real Estate Development and Environmental Sustainability in India
Santhosh Kumar, Vice Chairman of ANAROCK Group, discusses the pressing need for sustainable real estate practices in India to mitigate environmental degradation and promote eco-friendly development.
Real EstateSustainabilityEnvironmental ImpactGreen BuildingsUrban PlanningReal Estate NewsJun 06, 2025
India, with its massive and rapidly growing population, is experiencing unprecedented economic growth. This growth has led to large-scale infrastructure and industrial projects, including highways, rural road networks, and Special Economic Zones (SEZs). While these projects are essential for accommodating economic expansion, they pose significant threats to biodiversity. Cities and townships are expanding at the cost of agricultural lands, which in turn rely on tree cover.
Simultaneously, the changing lifestyles of Indians, driven by rising incomes in both rural and urban areas, are placing increasing demands on biodiversity. Evidence of unsustainable practices is often found in our immediate neighborhoods or even our own homes. To achieve a balance between development and the environment, the Environmental Impact Assessment (EIA) was made mandatory in 1994 for various categories of projects, including thermal and nuclear power plants, mining, river valley, and infrastructure projects. The EIA was further revised in 2006 to enhance its efficiency, decentralization, and transparency.
Despite these measures, biodiversity in India continues to face threats from multiple pollution sources, such as improper municipal solid waste disposal, inadequate sewerage, excessive use of chemical pesticides, and the indiscriminate use of hazardous chemicals. Real estate developers have a crucial role to play in mitigating the detrimental impact of their construction activities on the environment. Advances in technology can accelerate the supply of 'green' buildings, incorporating solar energy harnessing, energy-efficient heating and cooling systems, waste and water recycling, and rainwater harvesting. However, the responsibility does not lie solely with developers; urban planners, architects, various government bodies, and end-users of real estate must also collaborate to achieve a better environment for future generations.
The Indian real estate industry’s track record of self-regulation in environmental management has been poor. While some developers have taken sustainable development seriously, many others flout the rules. For example, despite the National Green Tribunal’s ruling to maintain a 75-meter buffer from lakes in Bengaluru, nearly one-third of housing projects in the city have ignored these regulations. The contaminated Bellandur Lake, which has been used as a receptacle for construction waste, is another concerning example.
Statistics reveal that more than 70% of the buildings that need to be constructed in India by 2030 have yet to be built. In contrast, in the UK, more than 80% of the buildings required by 2050 are already completed. This disparity means that India will be using its natural resources at an unsustainable rate. Buildings in India consume 40% of energy, 30% of raw materials, 20% of water, and 20% of land, while generating 40% of carbon emissions, 30% of solid waste, and 20% of water effluents. With almost 70% of the building stock yet to be constructed, India faces a bleak environmental future.
To address these challenges, India’s local governing bodies must focus on making cities more inclusive, resilient, safe, and sustainable. This involves implementing environment-friendly green technologies in infrastructure facilities, with the goal of achieving ecological harmony, not just economic benefits. Cochin International Airport, the first airport in India to run entirely on solar power, produces 18 million units of power annually and has been recognized by the UN for its sustainability efforts.
Some Indian cities are also adopting transit-oriented development to create future-ready urban centers. This approach involves reforming land-use regulations to allow developers more flexibility in constructing mixed-use and higher-density developments where appropriate. These initiatives demonstrate that with sufficient political will and innovative practices, India can achieve a harmonious balance between real estate development and environmental sustainability.
Frequently Asked Questions
Why is the Environmental Impact Assessment (EIA) important in India?
The EIA is crucial in India because it helps assess the potential environmental impacts of various projects, such as thermal and nuclear power plants, mining, and infrastructure. It ensures that development is carried out in an environmentally sustainable manner.
What are some of the major threats to biodiversity in India?
Major threats to biodiversity in India include improper municipal solid waste disposal, inadequate sewerage, excessive use of chemical pesticides, and the indiscriminate use of hazardous chemicals. These threats are exacerbated by rapid urbanization and industrialization.
How can real estate developers contribute to environmental sustainability?
Real estate developers can contribute by incorporating green technologies such as solar energy, energy-efficient systems, waste and water recycling, and rainwater harvesting. They can also adhere to regulations and best practices for sustainable construction.
What is the significance of Cochin International Airport's solar power initiative?
Cochin International Airport's solar power initiative is significant because it is the first airport in India to run entirely on solar power. It produces 18 million units of power annually and has been recognized by the UN for its sustainability efforts.
What is transit-oriented development, and how does it benefit urban areas?
Transit-oriented development (TOD) involves creating mixed-use and higher-density developments near public transit hubs. It benefits urban areas by reducing traffic congestion, promoting sustainable transportation, and enhancing the overall quality of life.
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