By Mr Amit Mamgain
The growing awareness of our environmental challenges is driving the popularity of eco-friendly developments and green buildings in sustainable real estate. These structures use environmentally friendly materials and techniques, such as solar panels and rainwater harvesting, to minimize their carbon footprint. In this changing scenario, the realty sector is gaining investors’ attention and booming with high traction and rewards.
Investing in sustainable real estate not only benefits the planet but also offers long-term financial gains, such as reduced operating costs and tax incentives. As demand for environmentally conscious properties increases, investments in sustainable buildings may see significant value growth. These energy-efficient buildings also offer higher profits for investors, promoting ethical practices while providing economic returns.
Peeking into the future
Nearly 40% of global carbon dioxide emissions come from the real estate sector. Contrary to this, green buildings potentially save up to 30% of energy and 50% of water. Thus, to expedite sustainability goals, the sector requires long-term thinking, and businesses must invest with conviction to build a legacy for future generations.
The Indian real estate industry is expected to reach a $1 trillion market size by 2030 and contribute 13% to the GDP by 2025. This phenomenal growth is expected to be remarkably supplemented by green structures. Thereby, the future of sustainable real estate looks bright as investors recognize the long-term benefits of eco-friendly developments.
Governments and regulators are introducing policies to encourage sustainable development, such as tax incentives or subsidies for developers building energy-efficient properties. Advances in technology, such as smart home systems and renewable energy sources, may also shape the future of sustainable real estate. Consequently, investing in sustainable real estate makes financial sense over the long term.
Flourishing green avenues
The green real estate market in India has seen a surge in foreign investment, particularly in the luxury segment. Clean air and better air quality index (AQI) are crucial factors in determining property ownership decisions, especially for second-home seekers. People are becoming more conscious of the impact of air quality on their health, making places like Goa an attractive destination for health-conscious buyers.
Goa’s air quality index consistently remained in the “good” or “moderate” category due to its proximity to the Arabian Sea, lush greenery, and less traffic congestion. The region’s picturesque location and favourable climate make it a popular choice for second or vacation houses, offering a balance of nature living and modern comforts. The demand for sustainable homes has increased, leading to the development of holistic wellness amenities, requiring high levels of eco-friendly certifications, energy efficiency, water conservation, and clean air.
Information-based investment decision
To start investing in sustainable real estate, one should have a good understanding of green building practices, eco-friendly technologies, and the energy efficiency of the facilities involved in sustainable structures. Also, one should consult an experienced industry insider to identify opportunities aligning with preset financial goals. Staying informed on industry trends and best practices can help one enter the world of sustainable real estate to fetch maximum returns and contribute to creating a positive impact on the environment.
The bottom line
Sustainable real estate is a promising investment opportunity that benefits both investors and the environment. Green buildings and eco-friendly developments reduce carbon emissions and provide financial returns through energy savings, tax incentives, and higher property values. It aligns with socially responsible investing (SRI) and promotes positive social and environmental outcomes. Researching local regulations, building certifications, financing options and market trends is crucial for informed investment decisions.
(The author is Amit Mamgain, Director, Yugen Infra Pvt Ltd, and the views expressed in this article are his own)
