Consumer demand propels green projects

As the realty business is getting more organized and professional, consumers too are now becoming more aware of the New Age technological advancements.

Having understood the benefits of living in a green, eco-friendly, and environmentally-sustainable space buyers and corporate occupiers are now showing their preference for green projects.

A number of development firms are now building two categories of projects-one with normal specifications and regular features, and the second with slightly modified specifications incorporating green technologies.

While the first category has been the norm till date, the second category of projects is now being taken up in earnest by a number of development firms. The potential for quick returns in these projects on account of the interest shown by all kinds of buyers is a major factor pulling a number of developers into green projects.

Vikas Gupta, the director of Earth Infrastructure Ltd, which is building some green commercial projects in Noida and Greater Noida, says: “As consumers have now started demanding ‘greener’ projects, the industry has also begun planning and developing eco-friendly and green buildings. While commercial real estate has always been the frontrunner in developing green buildings, residential real estate is also catching up fast with the increased demand.“

The footprint of green buildings in the country is gradually growing. As per the estimates of the Indian Green Building Council, India currently has over 2,000 green buildings across segments like hospitals, hotels, colleges, and IT parks in the country . It is estimated that the country will have over one lakh green buildings by end of 2025.

The need to build green projects also stems from the fact that there are direct benefits of building such projects. According to a study conducted by Jones Lang LaSalle India, among the key metro cities, buildings in India consume about 20% of the country’s total electricity and have a significant impact on the environment and resources. And the cost pay back period is usually two-three years on the cost premium for including sustainable features in the project.

P Sahel, the vice-chairman of Lotus Greens Developers, says: “Green buildings are a growing trend-primarily because of the benefits they offer. Be it residential or commercial, projects built on the lines of sustainable development use less energy, water, and other natural resources. Selling or leasing a green building always has an edge over conventional building due to the tangible and intangible offerings that come attached with it, like lower operational costs, reduced carbon emissions, better working conditions, etc. The concept of green building has already been acknowledged by a large number of corporate houses; this raises the scope for good growth in this segment in the future.“

NCR’s Footprint

The definition of a green building, as provided by the Indian Green Building Council, suggests that a green building is one which uses less water, optimizes energy efficiency, conserves natural resources, generates less waste, and provides healthier spaces for occupants, compared to a conventional building. And the National Capital Region (NCR) is leading the rest of the country in terms of developing such projects.

While other regions in the NCR offer a mix of IT and other corporate occupiers, Noida alone has seen demand being driven primarily by IT companies.

Noida is also one of the cities that have provided extra floor area ratio to development firms that are building green projects. Last year Noida authority awarded 5% additional floor area ratio (FAR) to a number of developers who were coming up with green buildings.

Future prospects

Green buildings are definitely more energy efficient compared to the conventional ones. Their presence and prominence in the commercial real estate space has already gained acceptance. However, the residential space has yet to receive the patronage of the buyer, barring the high-end projects.

Buyers of the mid-ranged and low-end projects are yet to accept the offer of future and long-term benefits that are reaped from such developments.

“There is an increasing awareness in the masses today , who are increasingly accepting and asking for smart and efficient amenities that are ecologically safe and environmentally sound. Along with the features, however, the construction techniques and processes need to undergo change with the introduction of latest the methods in rapid construction to contain costs,“ says Amit Mavi, the founder of Bayaweaver Ltd, a real estate company.

It is expected that the development of green buildings will increase manyfold in the coming years. While there are direct benefits like reduction in energy consumption, the government’s plans to build 100 smart cities will propel the development of more such structures.

Source:http://content.magicbricks.com/industry-news/delhi-ncr-real-estate-news/consumer-demand-propels-green-projects/74204.html