Embracing Sustainability: The Future of Real Estate and Construction
The accelerating effects of climate change have rendered sustainable living the only viable option for humans. The corporate sector, particularly the real estate and construction industry, plays a crucial role in this transition. Niranjan Hiranandani, Chairman of NAREDCO and the Hiranandani Group, shares his insights on the need for the real estate industry to adopt sustainable practices. Edited excerpts:
The real estate and construction industry stands at a pivotal juncture as climate change and rising pollution levels reshape its operational landscape. The sector’s vulnerability to climate risks is more pronounced than ever. Rising sea levels, erosion, and heatwaves threaten infrastructure stability, while air quality concerns impact liveability and property demand in urban centres. These challenges translate into higher maintenance costs, declining property values, and a pressing need for adaptive measures. The need of the hour is a sustainability-first approach and a green development policy. The industry needs to pivot towards a circular economy.
Is the sector likely to face greater threats than what it has already witnessed? The sector is facing climate challenges more formidable than ever before. To secure the future of urban development, we must embrace sustainability as a core principle. Resilient infrastructure, guided by global sustainability benchmarks, is no longer optional—it’s a necessity.
How can the sector become green? Real estate, historically a significant contributor to environmental pollution, is now at the forefront of a green revolution. Industry leaders are advocating sustainable practices, integrating energy-efficient designs, green building materials, and renewable energy solutions. Advanced waste management systems, water conservation technologies, and smart infrastructure are reshaping urban development. Certifications such as IGBC and LEED set benchmarks, ensuring accountability and adherence to global standards. By prioritising circular construction methods and eco-conscious urban planning, the real estate sector is not only mitigating its environmental impact but also leading the way towards a sustainable and resilient future. However, adoption remains sluggish due to high costs and a lack of incentives for green real estate. Some fiscal stimulus to developers will go a long way.
Carbon neutrality is a crucial theme now. What is the real estate sector’s take on that? With purpose and innovation, the real estate sector is taking on the challenge of becoming carbon neutral. The sector is redefining how spaces are constructed and operated. But transitioning to sustainable practices presents several challenges. High initial costs and the need for specialised knowledge can deter some companies from adopting energy-efficient technologies. Additionally, retrofitting existing buildings to meet updated standards often proves complex and requires significant investment. Collaboration with global sustainability frameworks and adherence to certifications ensure measurable progress.
Higher polluting energy consumption has been a key challenge. Given the track record that the sector has, how can the situation change? The real estate sector has found innovative and sustainable ways to fix it. Energy-intensive construction practices, overdependence on non-renewable energy sources, and inefficient building designs have amplified the sector’s environmental impact. However, the industry is at a turning point. Developers are now prioritising green building certifications, integrating renewable energy systems like solar panels, and adopting energy-efficient technologies such as smart HVAC systems. Additionally, urban planning is shifting towards mixed-use developments to reduce transportation-related emissions and ensure lower carbon footprints. While the sector’s performance has room for improvement, these advances signal a strong commitment to reducing energy consumption.
Today, we have set an overall target to reach a sustainable future. But recent political developments across the globe indicate a shift from these goals. How does that impact funding for sustainability measures? While global standards and sustainability goals have set a clear direction for the future, recent political shifts have raised questions about this commitment’s consistency. This uncertainty can impact funding and the drive for sustainability measures, especially in sectors reliant on policy support. However, the change in momentum is not solely dependent on politics. Businesses and investors are increasingly recognising the value of sustainability, with many doubling down on green initiatives through private funding, ESG-focused investments, and collaborative partnerships. Ultimately, achieving a sustainable future requires resilience and collective effort—where stakeholders across sectors stay committed, regardless of political fluctuations.
