Authored by – Radheecka Rakesh Garg, Director, Rajdarbar Realty
From city-level infrastructure to developer-driven projects, the growing focus on ESG principles is redefining the landscape of urban development in India. Increasingly, it has turned into a long-term strategy aimed at securing resilient, environmentally conscious and socially responsible real estate development.
Sustainability at the City/Sector Level
At the heart of this is the progressive integration of sustainability as a fundamental criterion in India’s urban planning. New cities and new sectors within existing cities are increasingly being planned with a vision to make them smart and eco-friendly. Even the congested parts of the cities, despite being beset with challenges, are being redeveloped with an emphasis on green spaces and sustainability. Moreover, government initiatives such as the Smart Cities Mission, as well as policies that promote green certifications like GRIHA and LEED, have also accelerated the transformation.
Regulatory mandates on rainwater harvesting, sewage treatment and renewable energy usage at a broader level are also ensuring that urban areas operate efficiently. Besides, policies encouraging solar lighting and other renewable solutions are making significant strides towards resource conservation across the country.
Sustainability at the Developer Level
As cities move toward sustainability, real estate developers are embracing ESG principles to align their projects with the growing demand for eco-friendly and ethically sound projects. Green buildings, once considered a rarity, are now the in-thing. Developers are now also striving to reduce carbon emissions and enhance the real estate sector’s contribution to curbing global emissions.
Further, the use of sustainable construction materials is also gaining momentum. Technology is another key enabler. Developers are strategically investing in artificial intelligence (AI) and the Internet of Things (IoT) to measure, monitor and mitigate environmental risks. These initiatives are not only aimed at reducing resource usage but also to enhance the environmental credentials of their projects, making them more attractive to modern buyers and investors who prioritise sustainability. Community welfare, especially for construction workers and labour rights are another key area. The inclusion of daycare centres for labourers’ children, worker safety programs and training initiatives speaks of the sector’s holistic approach to sustainability, which extends to include social responsibility.
Overarching ESG Trends in Real Estate
Developers are no longer content with merely pledging to adopt ESG principles—they are actively integrating these standards into their operations. As a result, green-certified spaces, once seen as a competitive advantage, are rapidly becoming the norm. Major occupiers now consider green certification a mandatory requirement for leasing commercial properties, reinforcing the widespread adoption of ESG standards across the sector.
Real estate projects that adhere to ESG principles are attracting substantial global capital, building strong brand reputations and ensuring long-term business. These investments not only meet the growing demand for sustainable properties but also position developers on the path to continued growth in a competitive global market.
However, challenges persist. The high upfront costs of green building technologies, the need for specialised expertise and longer project timelines remain significant obstacles. Despite these challenges, the long-term savings, increased asset value and environmental benefits far outweigh the initial expenditures, making sustainability a worthwhile investment in the real estate sector.
To conclude, global ESG trends are reshaping the future of Indian real estate. From sustainable city planning to developer-driven green innovations, the sector is aligning itself with the principles of sustainability, governance and social responsibility. While challenges remain, the drive towards ESG-compliant developments is not only vital for long-term growth but is also a strategic move that enhances investment potential, fosters climate-conscious growth and ensures pliability in an increasingly environmentally aware world.
(This article is part of DMCL Consumer Connect Initiative, a paid publication programme. DMCL claims no editorial involvement and assumes no responsibility, liability or claims for any errors or omissions in the content of the article. The DMCL Editorial team is not responsible for this content.)
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