Green buildings gain ground as India moves toward net-zero future

As India accelerates its journey toward achieving net-zero emissions by 2070 and cutting carbon intensity by 45% by 2030, developers are increasingly turning to sustainable construction practices. The trend spans both the residential and commercial real estate sectors, with a growing number of builders seeking pre-certification to ensure compliance with stringent green standards from the design stage itself.According to a joint report by KPMG and the National Real Estate Development Council (Naredco), India’s green building materials market is expanding rapidly—recording an annual growth rate of 10–12%. The market is projected to reach a valuation between ₹6.2 lakh crore and ₹7 lakh crore by 2030, reflecting the rising demand for environmentally responsible infrastructure.The preference for eco-conscious developments is equally visible among homebuyers and corporate tenants, who now prioritise spaces that minimise environmental impact not just during construction, but throughout their lifecycle. “The focus is now extending beyond construction to what goes inside these spaces,” said Vibhor Jain, founder and CEO of Carbon Guardians. “Workplaces today are expected to feature sustainable materials and healthier indoor air systems from day one. Sustainable interiors have shifted from being desirable to being indispensable, as businesses look for spaces aligning with their ESG goals.”Industry experts note a target of reducing embodied carbon by 40% from 2020 levels, with mandatory carbon disclosure expected to cover about a quarter of India’s commercial projects by the end of this decade. Market dynamics also reflect these shifts—green-certified buildings are now commanding rental premiums of up to 20% and tend to lease faster than conventional properties.“As urbanisation gains momentum, the adoption of green construction becomes vital,” said Parveen Jain, president of Naredco. “By 2047, nearly half of India’s population will be living in cities. Green buildings help relieve the strain on urban infrastructure while promoting long-term sustainability.”KPMG’s findings reveal that nearly all of India’s Grade-A office spaces now carry green certification, underscoring the sector’s swift transition. Meanwhile, in the residential market, features such as solar rooftops, rainwater harvesting, greywater recycling, passive cooling systems, and energy-monitoring applications have evolved from niche add-ons to mainstream expectations.While green projects often demand higher initial investment, developers and occupants alike benefit from lower utility bills, reduced maintenance costs due to durable materials, and higher occupancy rates driven by rising tenant preference for sustainable assets. Industry leaders agree that in the race toward a low-carbon future, India’s real estate sector is not just catching up—it is quietly setting new standards for environmentally conscious growth.