Why Sustainable Buildings Are the Future of Indian Real Estate

• Nov 24, 2025

As environmental issues increase every day, people are more concerned about sustainability to reduce their environmental impact. Even the real estate business is also moving towards sustainability and developing environmentally friendly projects. This has fueled demand for green buildings in India today. 

Those well aware of the concept of sustainable buildings are shifting their choices towards such projects for a better livelihood while ensuring long-term environmental benefits. From top-notch business and commercial projects to residential properties, properties are designed to serve environmental regulations. You can also call sustainable real estate properties the future of the Indian Market. Let's find out why. 

What is a Sustainable Real Estate Building?

Sustainable real estate development refers to a different type of construction approach that is followed by most real estate developers these days. This serves the purpose of environmentally friendly construction. From the planning of building modules to choosing construction materials, everything is done to minimise the effect on the environment. 

• Construction work uses energy-efficient raw materials and resources only to build the properties. 

• Buildings have provisions to retain water sources. For example, there are options to restore rainwater for recycling and reuse purposes. 

• Solar panels are installed to produce natural electricity for consumption. 

• Better design concepts are used in buildings that allow the use of natural light and air to reduce electricity consumption.

Why is the Concept of Sustainability Rising in the Indian Real Estate Market? 

The question might pop out as to why the concept of sustainable real estate in India is becoming so popular? The answer you know very well. The increasing pollution is affecting all the top-notch cities in India. 

Air pollution, noise pollution, water pollution, etc., are not only becoming the cause of environmental damage but also creating health problems. The consumption of non-renewable resources also increases, which further adds load on nature.

• In such scenarios, sustainable real estate is a great choice towards the environment, which helps in reducing the use of non-renewable resources, reducing power consumption, lowering overall cost, etc. 

• People are choosing such properties more and more, also because of the positive impacts they can have on human health and wellness. 

• There are government regulations and schemes that support the sustainable development of real estate. You can find IGBC-certified buildings in India that show government support towards such projects.

• Also, the long-term capital gains from such properties are higher because of their unique features and sustainability principles. 

India’s Green Building Market: Latest Data, Trends & Statistics

• The Indian green buildings market was recorded at USD 35,997.8 million (~USD 36 billion) in 2024, with a CAGR of ~12.4% from 2019 to 2024. GlobalData

• In India in 2024, 370 projects covering 8.5 million m² (91.5 million ft²) were certified under the U.S. Green Building Council’s LEED programme — making India 3rd globally in certification volume. Green Business Certification Inc.

• A regional example: In Rajasthan, over 600 IGBC-rated green buildings covering 185 million sq ft exist, achieving energy savings of 40-50% and water savings of 30-35% compared to conventional structures. The Times of India

• Green-certified office buildings in India are commanding rental premiums of 18-22% for conventional office space and 47-50% for flexible workspace formats. The Economic Times

Benefits of Energy-Efficient Homes in India

Sustainable Real Estate projects are a blessing to the environment. Along with that, the buyer of such properties gains tons of benefits. 

• Lower Energy Costs

These buildings use alternative energy resources like solar energy, wind energy, etc. Also, installation of smart meters, better quality insulators, etc., makes them energy efficient. These facilities were not present in traditional buildings. As a result, owners can save huge money on electricity bills, lowering their overall energy usage and cost. 

• Water Restoration

Sustainable residential properties have a water restoration system installed on the rooftop. It can efficiently restore water and produce a future water source by using rainwater harvesting technology. 

The strategy, in turn, helps in finding alternative resources of water resources. By recycling rainwater, you can cut down on actual water resource use. Also, low-flow plumbing technology is installed to regulate the water flow and save excess usage. 

• Personal Well-being

Sustainable buildings only use non-toxic raw materials for building construction. For example, paint and other raw materials like air filters used in building making are non-toxic. Also, the layout of the property is made in such a way that sufficient light and air can reach you. 

By using non-toxic paints, the air quality of your home will be pure. Natural light further enhances the well-being of the user. Health problems can be reduced as well. 

• Premium Asset

Properties that have sustainable properties and have proper certification can be a premium asset for the property holder. Because of the increasing demand for such properties, the price is increasing. 

The long-run price appreciation of sustainable real estate projects is high. Whether it is a residential property or a business project, you can always get a high price. From high resale value to great rental prices, you will always be in a better place.  

• Environmental Well-being

Green real estate properties use recycled concrete, bamboo, fly ash bricks, etc., to achieve their sustainability goals and serve environmental regulations. This ultimately helps in reducing the pollution level. The construction procedure of Green real estate properties causes less pollution. Also, the smart technologies used in such projects help in controlling pollution levels from daily use. 

• Lower Maintenance Cost

Normal real estate properties have high maintenance costs. But as the materials used in sustainable developments are of better quality, durable and non-toxic, their shelf life is longer. The power consumption, water consumption, etc., can effectively be reduced because of smart technologies. The future maintenance cost of such properties will automatically be lower. 

• Government Benefits

Buying sustainable properties can give you some government benefits as well. The government has launched a few certification criteria for green real estate properties. 

Real estate projects which have certifications like IGBC, GRIHA, and LEED, etc., can be eligible for getting Government Incentives and bonuses. Also, property owners can be eligible for property tax benefits and building tax benefits, etc. 

Green Building Materials Market in India

India’s green building materials market is expanding rapidly as developers prioritize eco-friendly construction, energy efficiency, and long-term sustainability in modern projects.

Certification & Premiums in Indian Green Buildings

Certified green buildings in India attract higher demand, offering energy savings, healthier environments, and notable rental and resale value premiums for buyers and investors.

Get Your Sustainable and Budget-Friendly Property from a Certified Platform 

Sustainable properties are in focus now. Real estate is slowly shifting towards sustainability. Because of the growing demand, it is hard to find a good property option at the desired budget and location. You need to spend a lot of time and money to get valid leads and information on potential green properties. 

But with CityProp, you don't have to worry about spending long hours to find the best-suited property for you. We are working tirelessly to serve you the best property as per your convenience. Our operational presence has spread across the nation. CityProp can give you the best deals on energy-efficient homes in India. To learn more about our charges and other details, feel free to browse our website.