Green Real Estate: Noida realty heralding a positive change through ESG-compliance

Noida, April 15, 2022: With the real estate industry expecting a boom in the recent months, it has become essential for NCR real estate sector to incorporate sustainability goals and ESG (Economic, Social, and Governance) norms in buildings as it accounts for 30% of the total certified office stock in India. NCR has a higher proportion of certified stock in non-SEZ projects. There is a growing realization amongst the Noida realty players that financial and economic barometers cannot alone govern success in the real estate markets today. Embodiment of ESG (Economic, Social, and Governance) factors in real estate are essential in attracting buyers to their projects.

Yash Miglani, MD, Migsun Group, said, “It is an uncompromising need to implement ESG norms in the buildings and contribute to developing climate resilience. Whether it’s minimizing carbon footprints, using environment-friendly materials for construction, or improving Diversity, Equity and Inclusion( DE&I), our foremost priority is to ensure and deliver green real estate projects.”

As per the recent research done by international property consultant CBRE, there has been an increase of 37% in the number of buildings following ESG norms in the last five years in India, with the NCR region spearheading the change.

Amit Modi, Director, ABA Corp, commented, “Constituting a piece of internal machinery to determine the social impact of the real estate projects and including special plans to cultivate greenery and biodiversity in the spaces is a must for compliance to ESG norms. We constructively facilitate these plans and promote community engagement and dialogues over it.”

After the pandemic, many home buyers have become climate-conscious. They are more inclined towards investing in green real estate and ecologically stable housing environments to ensure their well-being. Many home buyers are also agreeable to paying more for ESG-compliant buildings.

Sanjay Sharma, Director, SKA Group, said, “Implementing ESG principles is not a moral imperative or obligation, but the need of the hour today. These figures hint towards a positive development that we are committed to facilitating as agents of change.”

India has added a total of 78 mn sq. ft. of certified stock marking the resolve of the real estate sector to adhere to ESG principles and moving swiftly towards incorporating sustainability in their assets. People are also gravitating towards green real estate projects, supporting better financial growth for corporations and encouraging them to do the same.”

Deepak Kapoor, Director, Gulshan Homz, said, “ESG norms should protect our natural resources and restore our environmental stability. Complying to ESG norms supports better financial growth for companies, reduces long-term costs, and increases real estate assets’ life.”

The CBRE research showed a jump in the certified green office stock by 77% to 212 million sq ft in Q3 of 2021 from under 80 million sq. ft. in 2011.

As evident by the statistics of lower vacancies in ESG certified buildings than non-certified buildings, the Noida real estate developers are harnessing a positive change that will be a hallmark of successive developments in the future.