Tuesday, February 19, 2008

Sustainable Real Estate Development in India Starts to Gain Momentum

Jones Lang LaSalle Meghraj Paper Evaluates Emerging Trends and Adoption of Sustainable Practices in India

Taking action on India’s environmental crisis is no longer an option – it is a necessity. Sustainable real estate presents India with an unique and enormous opportunity to make concrete progress in the country’s effort to improve its environment. In a recent research report titled ‘Sustainable Real Estate Development in India’, Jones Lang LaSalle Meghraj highlights the increasing trend of sustainable development in India. There is greater consciousness towards the environmental crisis in India with terms such as sustainable development, corporate social responsibility and triple bottom reporting becoming more common in the real estate industry. The report also details the best practices and processes that owners and occupiers can adopt to reduce the environmental impact of their real estate assets and at the same time, gain from substantial ROI (Return on Investment) from their ‘green’ initiatives.

The ‘Sustainable Real Estate Development in India’ report points out that despite the ever rising construction activity, awareness of sustainability in India has significantly lagged behind countries in the West. Nevertheless with the growing importance of environmentalism in India, the Indian commercial sector has begun to make conscious efforts towards creating sustainable real estate. With support from the Indian government, almost 40 construction projects that are currently underway are registered with the Leadership in Energy and Environmental Design (LEED). LEED is soon emerging as the preferred rating system as it is flexible enough to be applied to a diverse variety of markets and also because it enjoys the greatest recognition of the various international rating systems. This recognition is especially important when one considers that a prime motivator for developers to create a certified sustainable building is to differentiate their project from competition. The government has introduced several schemes to encourage sustainability such as the Indian Renewable Energy Development Agency (IREDA) schemes for subsidising capital for installation of solar water heaters, encouragement of energy audits and management schemes, mandatory use of fly ash-based construction material, groundwater and rain water harvesting and most importantly increased monitoring of air and water pollution.

1 comment:

unforgiven said...

So a slight problem with this is; Indian real estate developers are pretty much the bottom of the barrel when it comes to corrupt businessmen.

Why spend x amount and get y for having a green initiative, when, one can just 'show' that they spent amount x, and still get y.