India's Sustainable Building Market Sees Significant Growth in Tier 1 Cities
The Indian market for sustainable buildings has made significant strides, especially among Tier 1 cities, with many construction players benchmarking their projects against global standards.
Sustainable BuildingGreen BuildingEnergy EfficiencyRenewable EnergyZero EmissionsReal Estate NewsSep 29, 2024
The green building market in India is set to contribute to Rs 3.2 lakh crore by 2025, with a growing emphasis on sustainable construction and green buildings becoming a larger share of new developments, according to a white paper 'Pathways to sustainable living & building practices,' by Resurgent India and NAREDCO released in June this year. GNFZ has been working with Indian cement, steel, and glass players, the three most critical components of any building, in optimizing material use. 'Reducing their emissions is a massive challenge because these are very energy-intensive industries, and they don’t have easy solutions. Companies like Aditya Birla, JSW Steel, Adani Cement, and others are implementing comprehensive renewable energy strategies and building gigawatts of capacity while they continue to increase steel and cement production due to high demand. This is an exciting trend and direction for the industry,' he said. Buildings account for nearly 40 percent of global CO2 emissions and 30 percent of global energy consumption, and there has been a growing focus on green buildings.
What are the price points that these sustainable buildings demand? Experts say that as the demand increases, the prices are almost the same as traditional construction practices or sometimes even lesser for green structures. 'There are different levels of sustainability in housing, and the price reflects that. A baseline sustainable home — using efficient materials and design — should be priced similarly to a traditional home. If it’s significantly more expensive, something isn’t right in how it’s being built or sold. The key is that a basic sustainable house can be cost-effective and still meet green standards,' added Ramanujam. Advanced sustainability features — like cutting-edge energy-efficient systems, solar installations, or water recycling setups — might see a 2-5 percent premium compared to a standard house. However, this extra cost comes from the additional technology and materials, but it’s an investment that pays off in the long run with lower utility bills, better indoor comfort, and increased resale value are just some of the benefits.
Frequently Asked Questions
What is the current state of the sustainable building market in India?
The Indian market for sustainable buildings has made significant strides, especially among Tier 1 cities, with many construction players benchmarking their projects against global standards.
What are the benefits of sustainable buildings?
Sustainable buildings offer several benefits, including lower utility bills, better indoor comfort, and increased resale value.
What is the price point of sustainable buildings in India?
The prices of sustainable buildings in India are almost the same as traditional construction practices or sometimes even lesser for green structures.
What are the challenges facing the sustainable building market in India?
The challenge now is ensuring that sustainable practices are consistently adopted across all levels of the market.
What is the role of Global Network for Zero (GNFZ) in promoting sustainable buildings in India?
GNFZ has been working with Indian cement, steel, and glass players, the three most critical components of any building, in optimizing material use and reducing emissions.
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