Beyond Brick and Mortar- Growing influence of green initiatives in commercial real estate

Beyond Brick and Mortar: Growing influence of green initiatives in commercial real estate

In recent years, India’s real estate industry has undergone a remarkable transition, with a particular emphasis on green initiatives and sustainability. The Indian real estate industry has accepted the duty to solve the urgent environmental issues facing the globe and has made great strides in implementing sustainable and eco-friendly methods. Whether it is commercial or residential developments, there is a shift in real estate development towards sustainability due to a number of factors, including increased global awareness, government initiatives, changing consumer behaviour that is more responsible, and the consequent urgency of combating climate change.

Based on a compilation of public industry reports, residential and commercial structures are responsible for a substantial portion of the global electricity usage. In addition to being one of the industries that creates the most jobs and is well-known for bolstering a nation’s social infrastructure, the real estate sector contributes significantly to global carbon emissions, according to a recent industry research. Acknowledging the obligation to reduce the carbon footprint in the future, the industry is progressively adopting sustainable practices and integrating environmentally-friendly solutions at every phase of the project life cycle. Green buildings are unquestionably in demand and gaining popularity, appealing to occupiers and developers alike as vital elements of promoting sustainability in both commercial and residential settings.

GRIHA is a rating system that assists users in evaluating a building’s performance in comparison to a set of nationally recognised benchmarks. By assessing a building’s environmental performance holistically throughout the course of its whole life cycle, it establishes a clear definition for what qualifies as a “green building.”

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Another significant program, the Leadership in Energy and Environmental Design (LEED) certification, stands as a globally recognized green building rating system. In order to obtain LEED certification, a project must accrue points through compliance with prerequisites and credits pertaining to transportation, materials, energy, indoor environmental quality, waste, carbon, and water.

India has wisely realised that there are clear economic benefits to the green movement and that it is more than just a fad.

According to the Indian Green Buildings Council (IGBC), India has made significant strides towards sustainability, taking the lead in the world in LEED Zero certified green building projects. India leads the world in LEED Zero projects, more than any other country, according to the US Green Building Council (USGBC) and Green Business Certification Inc (GBCI). This shows how committed the country is to sustainability. India’s commitment to sustainable development is furthered by LEED Zero’s recognition of projects that achieve net-zero or net-positive status across carbon, energy, water, or waste categories.

Green retail and commercial spaces

Regarding the retail and commercial real estate segments, sustainability has evolved from being a catchphrase to a principle that influences asset design and development. Green commercial and retail environments are now considered indicators of a retailer’s dedication to a more sustainable and better future. Office buildings are designed to minimise energy usage, improve the working atmosphere for employees, and reduce environmental impact as more businesses realise the benefits of sustainability. Green commercial spaces are becoming more and more popular as people realise that sustainability is not only a moral duty but also a wise economic move.

Investor and corporate perspectives

Sustainability is not just something that consumers choose; investors and businesses also give it careful thought. Investors are searching more and more for green real estate options as they realise how important sustainability is to the world’s top firms. Developers are being pushed to concentrate on sustainable real estate projects by the increased interest in green investing. Additionally, business executives are placing a high premium on sustainability. According to a recent industry research, the majority of company leaders prioritise on-site renewable energy use and energy efficiency.

In conclusion

In India’s real estate industry, green initiatives are a key factor that are changing the industry and bringing about positive change. Green initiatives are becoming even more accessible as a result of government regulations and incentives that promote sustainable development. The attitudes and aspirations of contemporary customers are being reflected in the growing prevalence of green retail and commercial settings. The younger generations are strong proponents of energy efficiency and the broad use of renewable energy sources because they have a strong commitment to environmental sustainability. They have demonstrated a strong commitment to environmental sustainability, and they have a significant impact on the real estate industry. The real estate industry is headed in a positive direction that will help businesses, customers, and the environment in the long run by becoming more environmentally conscious and sustainable.

(By Ravinder Arora, Chief Operating Officer, Bharti Real Estate. Views are personal)