Adopting Sustainability Practices In Commercial Real Estate Industry For Better Tomorrow

The real-estate industry at present is the second largest employment generator in the nation and is undeniably one of the leading sectors that channel the growth of the nation’s economy. After a pandemic-induced dip, the industry reinvented itself and is on course for sustained growth in the coming years.

A recent report by the IBEF highlights that the industry is expected to reach a USD 1 trillion market size by 2030 and contribute 13 per cent to the GDP by 2025. In addition to this, according to the UN Environment Programme, the construction and operation of buildings contribute to around 40 per cent of the total global carbon emissions. This is where the commercial real estate industry comes to a crossroads and must cautiously pave its way in the future.

To adopt greener initiatives is ‘the’ need of the hour due to the impact of the real estate industry’s constructions and operations, owing to which, there is a noticeable shift among present-day consumers to lead a sustainable lifestyle. Educated and responsible homebuyers also welcome eco-conscious real estate solutions, besides preferring green-certified buildings. Now, more than ever, it has become clear that buildings redesigned with green features will depreciate less quickly than others.

The parameters of physical real-estate spaces are evolving in consonance with the introduction of newer technologies and innovation. Cutting down on carbon emissions, building safe and sustainable designs, and focusing on the growth of the sector in parlance with demands of rapid urbanization have been a key balance that leading industry players are aiming to achieve. Furthermore, with the involvement of multiple stakeholders, the industry has been able to adopt sustainable measures and has turned its attention towards ensuring water, energy, and waste efficiency. A holistic and strategic approach toward sustainability is still a far-fetched dream. There is a scope for the commercial real estate players to tailor design expectations to match sustainability initiatives and get requisite certifications.  Along with sustainability, it is crucial that all industry players focus on holistic well-being as well. This can be done by following a rigorous set of standards and guidelines that ensure a safe and healthy lifestyle and promote all-embracing growth in every facet from simple unit layouts to lighting, air-conditioning, ventilation, and air quality. 

Solutions:

• Adopting ecological solutions for better economic implications: Industry leaders can achieve a wide range of benefits through sustainable designs, construction, and operations. Green buildings are climate-resilient, consume less water, optimally use energy, conserve natural resources, and enhance biodiversity. Adapting a greener approach further ensures a better liveability quotient by providing better ventilation, adequate daylight, superior air quality, and overall well-being. In terms of financial implications, green homes reduce the operating costs of buildings and provide higher returns on investments, higher rental value, and rebates on property taxes
• Setting decarbonisation targets to tackle environmental degradation: Industry leaders must set net-zero carbon or decarbonisation targets with each real-estate project, as the targets can usher innovation while adhering to the primary motive of achieving sustainability. Leaders should also consider climate science to evaluate the physical climate risks while developing their concerned projects. To ensure a company is on the right path towards achieving net zero carbon emissions or decarbonising, it is crucial to review its plans for reducing greenhouse gases and whether its investments are in line with that plan.
• Utilising renewable resources to lessen harmful emissions: Leaders in the industry must seek ways to switch energy use to renewable sources during the construction stage itself. Designing sustainable projects in real estate requires planning and implementation strategies that consider the circularity concepts like “reduce, reuse, recycle” and waste minimization over time with increased integration of environment-friendly construction materials

Sustainability has increasingly become a prime focus for corporate leaders across the world as they look to align their plans with low-carbon goals and lead a global movement toward sustainable business practices. The real estate industry has consequently entered an age of unprecedented transformations and is reshaping itself in terms of its operations. As the market continues to seek opportunities, real-estate companies and investors alike must adopt more aggressive climate-conscious policies and strategies to remain relevant in this era of environmental consciousness.

The author is Country Director, MQDC India

Chulamas Jitpatima

Guest Author The author is Country Director, MQDC India Real Estate