A recent survey report Build Ahead by Xynteo, a strategic advisory firm, has found that residential buyers are ready to pay 5-10 per cent more for green buildings and corporate are willing to pay 15 per cent plus premium for green buildings
The Indore chapter of the Indian Institute of Technology (IIT) has claimed that it has developed a cow-dung based building material that can be mixed with concrete to make a light building material product, which acts as thermal insulator. The IIT team has called it GOBAiR and claims that it can make construction cheaper and thermally more efficient to for India’s tropical environment.
While this innovation is too new to cheer up green-building enthusiasts—as it has yet not been tested in the construction industry—research in this segment shows a trend towards a push for green buildings. Like India, the world is also moving towards green buildings, possibly making faster strides towards its set green goals.
The need to decarbonise the buildings can be understood by the numbers put forth by UNEP: 40 per cent of global energy is used by buildings, 25 per cent of water is used by buildings, and about one-third of greenhouse emissions are from buildings. However, energy consumption can be decreased by 30 to 80 per cent by applying latest technology and using new materials.
What is more heartening is that consumers are willing to pay an upfront premium for green buildings. A recent survey report Build Ahead by Xynteo, a strategic advisory firm, has found that residential buyers are ready to pay 5-10 per cent more for green buildings and corporate are willing to pay 15 per cent plus premium for green buildings.
The corporate occupiers are driven by energy savings and reduced emissions. 74 per cent are ready to pay premium of about 15 per cent for near zero emissions to 50 per cent for net zero emissions, according to Xynteo.
More than 1100 residents across lower-middle and middle-income groups and 26 corporations participated in the Xynteo’s survey.
Vipul Kumar, senior partner, Xynteo, says, “The survey results debunk the perception that Indian consumers demand for sustainable living is negligible or nascent. Today consumers care about access to greenery, clean air, reliable materials, and operational savings, which green buildings can offer. This is the perfect time for real estate/construction companies to seize the moment and offer green alternatives. There is a clear need to adopt green practices while building homes and offices; now strongly backed by consumer demands.”
The consumer demand for green buildings could be better with more awareness. Aun Abdullah, Head-ESG, Lodha, says, “The primary challenge is the myth that green buildings inherently cost more, while the truth is that many sustainable features can be incorporated by thoughtful design at minimal to no additional expense. Factoring in the lifecycle benefits, even initially pricier green elements prove economically advantageous. Another significant barrier is raising the awareness and demand among the public for climate-conscious developments.”