India’s Future with Sustainable and New Age Real Estate Option

The real estate industry in India is undergoing a transformative shift, reshaping how we live, work, and interact with our environment. With urbanization accelerating, climate challenges intensifying, and economic dynamics evolving, reimagining real estate is imperative. The future demands spaces that are more liveable, sustainable, resilient, and affordable to meet the needs of a diverse and growing population.

Real estate forms the backbone of economic and social infrastructure. According to IBEF, the Indian real estate market is expected to reach $1 trillion by 2030, contributing over 13% to the country’s GDP. Despite this significant role, the industry faces challenges such as housing shortages, climate risks, and fluctuating capital markets. Public-private collaboration is essential to overcome these hurdles and redefine real estate’s purpose.

Trends in Indian Real Estate Over the Last Five Years

Urbanization and Housing Demand:

• Over 35% of India’s population now resides in urban areas, with this number expected to reach 40% by 2030.
• Affordable housing has been a focal point, with the government launching initiatives like the Pradhan Mantri Awas Yojana (PMAY) targeting 50 million urban homes by 2024.

Rise of Green Buildings:

• India ranks third globally in LEED-certified green buildings, with over 146 million square meters of certified space as of 2023.
• Sustainable design practices have gained traction, with developers incorporating solar energy, rainwater harvesting, and green roofing.

Digital Transformation:

• Real estate tech, or PropTech, has surged, with platforms for virtual property tours, blockchain-based transactions, and AI-powered asset management becoming mainstream.
• The sector attracted $2.4 billion in PropTech investments from 2018 to 2023, demonstrating rapid technological adoption.

Resilient Infrastructure Post-Pandemic:

• The demand for mixed-use developments and flexible workspaces has grown, reflecting changes in work and lifestyle preferences.
• Co-living and co-working spaces have seen a 50% rise in adoption since 2020.

Increased Institutional Investment:

• Foreign Direct Investment (FDI) inflows into real estate surged to $23 billion between 2018 and 2023.
• Real Estate Investment Trusts (REITs) gained popularity, providing liquidity and transparency, with assets under management exceeding ₹2 lakh crore.

Key Pillars for Reimagining Real Estate

Liveability:

• Focus: Human-centric design that prioritizes well-being and fosters social interaction.
• Examples: Incorporating green spaces, pedestrian-friendly layouts, and smart amenities in urban projects.

Sustainability:

• Focus: Transition to energy-efficient and low-carbon solutions across the building lifecycle.
• Impact: Green buildings can reduce energy consumption by up to 30% and water usage by 50%, significantly lowering operational costs.

Resilience:

• Focus: Developing infrastructure that can withstand physical and economic shocks.
• Action: Investing in disaster-proof materials, climate-responsive designs, and robust financial planning.

Affordability:

• Focus: Addressing housing shortages to make quality living spaces accessible.
• Reality: India still faces a housing deficit of 19 million units in urban areas, necessitating innovative financing and cost-efficient construction techniques.

Collaboration for the Future

Public and private sectors must work in tandem to achieve these goals:

• Government Role: Streamlining regulatory frameworks, improving infrastructure, and providing tax incentives to attract investments. Initiatives like the Affordable Rental Housing Complexes (ARHCs) and single-window clearances have set the stage.
• Private Sector Role: Leveraging technology to enhance transparency, embedding sustainability in project planning, and fostering innovation to create adaptable properties.

Building Communities, Not Just Structures

The vision for the future of real estate extends beyond constructing buildings. It’s about creating thriving communities that cater to the evolving aspirations of citizens while preserving resources for future generations. This transformation will require a blend of innovation, collaboration, and commitment from all stakeholders.

Real estate’s potential to drive economic growth, enhance societal well-being, and combat climate change is immense. By reimagining its role, we can shape a more sustainable and inclusive future for India. The time to act is now—together, we can redefine the built environment for generations to come.

Authour
Richi Richa Das
Marketing Manager | Evos Buildcon Pvt Ltd.