A report from the World Bank emphasizes the crucial role buildings can play in mitigating climate change through a reduction in greenhouse gas emissions.
A recent investigation conducted by Vestian in collaboration with ASSETZ—two prominent entities in the real estate sector—reveals that the share of green buildings in Bengaluru is a mere 9%. This low percentage stems from the inconsistent implementation of green standards in the establishment of residential projects in the region.
Interestingly, most green buildings in Bengaluru are commercial structures, typically occupied by multinational corporations, corporate tenants, and Indian companies. These entities adopt green practices primarily to comply with their global sustainability commitments. In stark contrast, green housing initiatives within residential neighborhoods are non-existent.
According to a United Nations report, India is projected to require 300 million urban residences by 2050. With Bengaluru currently grappling with urban housing challenges, it is poised to play a significant role in accommodating this demand.
The study by Vestian points out that the Indian government's focus has largely been on commercial buildings, primarily due to their significant energy consumption associated with central heating, air conditioning, ventilation systems, and around-the-clock power backup. Furthermore, a mere 2% of the market consists of ultra-luxury and luxury segments, concentrated in metropolitan areas.
In India, two systems—the Country Green Building Rating System and the Indian Green Building System—recognize eco-friendly buildings with a cost implication ranging from 2-12% for green-building certification.
Many builders express a preference for obtaining green building certification; however, a lack of awareness regarding the long-term cost benefits of eco-friendly construction deters many residential developers. The added expenses associated with green certification often dissuade builders, especially as most potential buyers or investors are hesitant to absorb these extra costs.
The Confederation of Real Estate Developer’s Associations of India (CREDAI) highlights that numerous real estate firms are willing to embrace eco-friendly projects, given there are assurances regarding favorable sale prices for green buildings. Nonetheless, the absence of verified evidence demonstrating operational cost savings through performance monitoring systems following construction raises buyer skepticism. This hesitation is particularly troubling as escalating urbanization continues to strain valuable natural resources utilized in building materials.