Going Green: Indian Developers Embrace Sustainable Construction for Commercial Spaces
Leading real estate developers in India are increasingly incorporating sustainable practices by investing in green building projects. These structures are designed to minimize the consumption of energy, water, and natural resources, generate less waste, and provide a healthier environment for occupants compared to conventional buildings, thus appealing to a larger pool of tenants. Despite the 7-10% premium over traditional construction costs, developers recognize the value proposition of green buildings in a competitive market.
This shift is largely driven by the escalating environmental consciousness among high-profile tenants, especially multinational corporations (MNCs). An increasing number of MNCs are incorporating inquiries about green building certifications and sustainable practices in their Requests for Proposals (RFPs). Anuj Puri, Chairman and Country Head of Jones Lang Lasalle-Meghraj, observes, "It may not be mandatory today but going forward, many MNCs will make it mandatory". Prominent developers such as K Raheja and RMZ have committed to fully embracing green building practices for their upcoming projects.
RMZ Galleria, a 1.9 million square foot mall currently under construction in Bangalore, is designed as a green development. Similarly, K Raheja's Mindspace projects in Mumbai and Hyderabad, also under development, are being built with green building principles in mind. The CII-Indian Green Building Council (IGBC) reports that 147 million square feet of green building space, encompassing 239 projects, has been registered in India to date. K Raheja is currently planning and developing approximately 14.5 million square feet of green building space across the nation. Shabbir Kanchwala, Associate Vice-President of K Raheja, states, "We are looking at the long-term and want to be the first ones to go green in a big way".
While some developers are fully committed to green building practices, others are adopting a more phased approach. Bharat Dhuppar, Senior Vice-President of the Lodha Group, explains, "Only our commercial buildings will be green". Lodha Group has approximately twelve buildings in the pipeline, with most scheduled for completion between 2009 and 2010.
K Raheja anticipates a 7-8% increase in construction costs for their green building projects. However, the long-term savings are projected to be substantial. Kanchwala projects, "We are looking at 30-40% power saving and about 20% water saving". He further elaborates on their sustainable construction practices, "Also in construction, we try and use a lot of recycled materials — aluminum and glass — as well as mix fly ash with the concrete that is used". The incorporation of glass in construction is being deliberately reduced. These measures aim to minimize the environmental footprint and improve the building's overall efficiency. In a global scenario where energy costs are steadily rising, and energy investments are peaking, green buildings present a strong value proposition to developers. Kanchwala adds, "Many of our customers are Fortune 500 companies who understand and prefer green buildings".
This trend of adopting green building practices is becoming increasingly prominent in the Indian Real Estate sector. Selvarasu notes,"The future is in sustainability".