Sustainable Real Estate Trends 2024

Sustainable Real Estate Trends 2024

In a bold stride towards sustainability, India pledges to achieve net-zero greenhouse gas emissions by 2070 and aims to harness 50% of its energy from renewable sources by 2030.

The global carbon footprint is significantly impacted by the real estate sector, which contributes to nearly 40% of total emissions. India, as a major real estate player, contributes 7.3% to global emissions. Given these figures, prioritizing sustainability in real estate is not just important; it's a necessity for a greener and more sustainable tomorrow.

Sustainability is not just a fancy word; it actually impacts and transforms the industry for its own benefit. Amidst the ever-evolving real estate scenario, a multitude of changes centered around sustainability have become increasingly apparent. A collaborative report from KPMG in India and Colliers has highlighted India's pivotal shift towards sustainability, with a noteworthy 61% of Grade A office stock in India adopting green practices as of 2023.

Developers today understand the importance of sustainability, and their commitment is reflected in the adoption of trends geared towards a more sustainable approach. Let's explore the leading sustainable real estate trends of 2024.

Top Trends in Sustainable Real Estate 2024

Green Building and Green Building Certification

We can expect a surge in green building construction and its certification. A green building integrates nature into its design, utilizing sustainable materials, optimizing water and air usage, and minimizing non-biodegradable waste. Several certifications exist to endorse and advocate for sustainable construction practices in green building projects.

It is expected that in 2024, the demand for green buildings will be higher for both commercial and residential real estate properties. Badal Yagnik, the Chief Executive Officer of Colliers India, has mentioned the substantial growth in green-certified office buildings, reaching a noteworthy 421 million sq ft, almost doubling since 2016.
He also shared that the impact of this is likely to be seen in terms of advantageous pricing, heightened asset valuation, increased brand value, client retention, and rental potential, and that developers and investors are set to prioritize high-performing assets, responding to the rising demand for sustainable workspaces among occupiers.

Eco-friendly residential and sustainable Sustainable Neighborhoods

Technology is leading the charge towards eco-friendly living. The surge for smart, eco-friendly houses is rising, and this year we can expect to see the continuation of its growth. Reports suggest that the smart home market in India is expected to witness a robust compound annual growth rate (CAGR) of 18.4 percent from 2020 to 2025. Smart homes, energy-efficient systems, and cutting-edge building operations are reshaping our carbon footprint.

Modern homes are embracing energy-efficient systems and tapping into the potential of solar and renewable energy, ensuring both environmental responsibility and cost-effectiveness. These smart homes are also a hallmark of luxury living. Builders are also prioritizing comprehensive sustainability by crafting entire eco-friendly communities. This strategy integrates green spaces, eco-friendly transportation solutions, and communal gardens. So, climate-conscious people are likely to choose a sustainable green neighborhood over anything else.

Sustainability in Commercial Sectors

As per last year's data, there is a significant rise in green office stock in commercial real estate sectors. It is expected to grow further this year. Alongside environment-conscious practices, we're also observing a shift in the landscape of flexible workspaces, spurred by the evolving dynamics of work culture.

Sustainable Real Estate Practices

Co-working spaces and inventive office layouts are gaining prominence, providing businesses with the adaptability to embrace changing work models. Based on reports, India's coworking sector is anticipated to register a compound annual growth rate (CAGR) of 16% from 2021 to 2026. This is another trend to look out for this year.

Circular Economy Practices

By 2030, the circular economy's worth could surpass $45 billion, offering the private sector a unique chance to seize a first-mover advantage. Implementing circular economy principles in their operations positions businesses to attract green investments and foster sustainability. The shift towards circular economy practices is gaining traction. Reusing materials, reducing waste, and recycling within the construction process are slowly becoming standard practices for many real estate developers.

Proptech is the driving force in sustainable real estate practice

The proptech industry is working as a catalyst to drive further growth in the real estate industry's sustainable practices. The fusion of technology and sustainable real estate practices not only enhances efficiency but also contributes significantly to reducing environmental footprints. Here’s how you can incorporate proptech into your sustainable real estate projects to increase your property valuation further.

Paperless Documentation:

Traditional real estate transactions involve a plethora of paperwork, contributing to deforestation and resource waste. Proptech intervenes by introducing paperless documentation platforms.
Secure, cloud-based systems and smooth automation streamline the entire process. From inventory management to KYC verification, this not only reduces environmental impact but also enhances operational efficiency.

Tech for Sustainable Real Estate Practices

Virtual Tours Showcasing Eco-Friendly Homes:

PropTech introduces the game-changing concept of virtual tours. Imagine showcasing an eco-friendly home in intricate detail, allowing potential buyers to explore sustainable features like energy-efficient appliances, solar panels, and green building materials.
Virtual tours offer an immersive experience, enabling a deeper appreciation for environmentally conscious design. By showcasing a digital replica of your real estate, you can showcase future plans and raise the valuation of your property in front of potential investors as well.

AI and other sustainability tools:

Artificial intelligence (AI) in proptech is harnessed for sustainability analytics. AI algorithms analyze data related to energy usage, water consumption, and waste management, offering actionable insights for property owners. This data-driven approach helps in identifying areas for improvement and implementing eco-friendly initiatives.
Alongside the increased use of AI, there are other great proptech tools, like energy monitoring solutions, that empower property owners to track and optimize their energy consumption. Smart sensors, connected to a centralized platform, provide real-time insights into energy usage.

Standing in 2024 for sustainability is not an option; it's a necessity for a thriving and resilient real estate future. Sustainable real estate is about creating spaces that not only meet our needs today but also consider the needs of future generations.
As the sustainable real estate trend continues to evolve, it's clear that it's not just a passing fad but a paradigm shift in how we approach property development. With the rise of sustainable practices, the rise of proptech is also evident. So it is time for you to embrace the trends, explore the benefits, and be part of the transformative journey towards a more sustainable tomorrow.

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