Embracing Sustainability: The Future of Real Estate and Construction
As climate change and pollution levels rise, the real estate and construction industry is at a critical juncture. Industry leaders like Niranjan Hiranandani advocate for a sustainability-first approach to secure a resilient and green future.
SustainabilityReal EstateClimate ChangeGreen BuildingEnergy EfficiencyReal EstateJun 16, 2025
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.
Frequently Asked Questions
What are the main climate challenges facing the real estate sector?
The real estate sector faces challenges such as rising sea levels, erosion, heatwaves, and declining air quality, which threaten infrastructure stability, liveability, and property demand. These issues lead to higher maintenance costs and a need for adaptive measures.
Why is a sustainability-first approach important for the real estate industry?
A sustainability-first approach is crucial for the real estate industry to mitigate environmental impacts, reduce maintenance costs, and ensure long-term resilience and liveability in urban centres.
What are some key practices for making the real estate sector greener?
Key practices include integrating energy-efficient designs, using green building materials, adopting renewable energy solutions, implementing advanced waste management systems, and prioritising water conservation technologies.
How can the real estate sector achieve carbon neutrality?
Achieving carbon neutrality involves redefining construction and operation practices, adopting energy-efficient technologies, and collaborating with global sustainability frameworks. High initial costs and the need for specialised knowledge can be challenges, but fiscal incentives and private funding can help.
How do political shifts impact funding for sustainability measures in the real estate sector?
Political shifts can create uncertainty and impact funding for sustainability measures, but businesses and investors are increasingly committed to green initiatives through private funding, ESG-focused investments, and collaborative partnerships.
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