In the dynamic core of India’s real estate sector, a notable trend is reshaping the panorama – the upsurge in demand for sustainable luxury properties. This surge goes beyond market fluctuations; it reflects the conscientious aspirations of homebuyers, both local and global. Fueled by increasing disposable incomes, a penchant for luxurious living, and the swift urbanization of Indian metropolises, the luxury real estate market in India is undergoing an unprecedented boom.
The India Luxury Real Estate Report 2023 by Knight Frank attests to this growth. According to the report, the count of ultra-high-net-worth individuals (UHNWIs) in India is set to skyrocket by an impressive 63% in the next five years, reaching a remarkable 11,198 by 2025. This transformative shift opens up tantalizing prospects for luxury real estate, particularly in the key cities of Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, and Pune.
What distinguishes this surge is the noticeable increase in the demand for sustainable luxury properties. Prospective buyers are increasingly leaning towards homes that are not just aesthetically opulent but also ecologically responsible. Data from a report by GlobalData emphasizes this shift. In 2021, the green building market in India reached a significant value of $20,983 million, showcasing a compound annual growth rate (CAGR) of 7.2% from 2017 to 2021. The appeal of sustainable living extends beyond Indian borders; globally, there is a visible interest in green building practices. The Global Green Building Materials Market, valued at USD 247.93 billion in 2023, is projected to reach USD 394.41 billion by 2028, indicating a worldwide trend towards eco-conscious living.
This transformative shift in the real estate sector goes beyond mere physical structures; it adopts a holistic approach that prioritizes the well-being of inhabitants and the environment. Today’s buyers are in search of properties that provide a range of wellness amenities and are carefully crafted to promote sustainable living. The ‘Sustainable Real Estate: India’s Response to a Greener Future’ report by JLL highlights this evolving sentiment. Among the surveyed occupiers, 7 in 10 have set carbon emission targets as part of their corporate sustainability strategy. A similar majority is open to paying a premium for leasing green-certified buildings, indicating a market ready to invest in eco-friendly spaces.
However, what sets apart these sustainable luxury properties? They are more than just residences; they are conscientious havens meticulously designed with a singular focus on reducing environmental impact and optimizing energy efficiency. Take, for instance, the TARC Tripundra project, a new sustainable luxury housing endeavor in Delhi backed by a ₹500-crore investment. This development will consist of 190 apartments equipped with green features like rainwater harvesting, solar panels, and energy-efficient appliances.
This upsurge in sustainable luxury real estate isn’t merely a passing trend; it signifies a profound shift in the market ethos. A JLL study involving over 550 corporate real estate leaders in the Asia Pacific region, including India, reveals that 9 out of 10 respondents view the connection between Corporate Real Estate (CRE) and sustainability as a board-level agenda. Furthermore, green real estate assets in key Indian cities have risen from 24% in 2011 to an impressive 31% in 2021. According to a 2022 report, the availability of green real estate assets, compliant with ESG standards, has surged by a substantial 37% in the last five years. These statistics aren’t just numerical figures; they signify a robust, sustainable future for the Indian real estate industry.
The global luxury real estate market is experiencing a heightened demand for properties in key international hotspots, attracting both high net worth individuals (HNIs) and ultra-HNIs. These sought-after destinations, including London, New York, Dubai, Singapore, Hong Kong, and Sydney, provide a perfect blend of lifestyle, security, convenience, and returns for discerning buyers. However, it’s not limited to these established markets, as emerging locations in India, such as Delhi, are gaining attention from HNIs. Projects like Tarc Tripundra, a luxury residential development in Delhi, offer spacious 3 and 4 BHK flats equipped with fully loaded kitchens, home automation features, air purifiers, and high-security measures. Investing in such projects not only allows HNIs to enjoy the perks of a global hotspot but also contributes to environmental sustainability and the local economy.
As we approach a transformative phase in India’s luxury real estate market, it becomes clear that sustainable luxury properties transcend mere residences; they embody a new lifestyle. This lifestyle harmonizes opulence with environmental stewardship—a way that fulfills the desires of the present generation without compromising the prospects of generations to come. In this paradigm where luxury aligns with consciousness, developers and buyers are not merely erecting houses; they are forging a legacy of sustainable living.
