Real Estate Takes Centre Stage in India's Net-Zero Mission
As India intensifies its climate commitments, the real estate sector is emerging as a pivotal force in the green transition. A new report by the National Institute of Urban Affairs (NIUA) and Rocky Mountain Institute (RMI), titled “Build Right for the First Time: Scaling Adoption of Net-Zero Carbon Buildings in India”, underscores the critical role developers must play in achieving net-zero goals.
According to the report, India could slash up to 8 gigatons of CO₂ emissions by 2050 by scaling net-zero practices in new construction. While this shift requires an added investment of ₹4,566 per sq. m, the long-term benefits—reduced emissions, operational savings, and healthier living environments—make the case clear.
Lalit Kumar Aggarwal, Co-founder & Vice Chairman of Signature Global (India) Ltd. says, “The report reaffirms what progressive developers have long believed—building green is not just environmentally responsible, it's economically sensible. At Signature Global, sustainability is a core pillar of our strategy. From energy-efficient designs and low-carbon materials to advanced cooling technologies, we are committed to ensuring every development contributes meaningfully to India’s net-zero journey.”
Across the board, developers are recalibrating. Whether in affordable or premium segments, many are adopting passive design elements, low-carbon construction materials, and on-site renewable energy solutions. Net-zero is no longer aspirational—it’s fast becoming business-critical.
Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation says, "Sustainability in real estate is no longer optional—it’s inevitable. Today’s homebuyers are increasingly prioritising projects that incorporate eco-friendly practices, from energy-efficient designs to the use of low-carbon materials. As buyer preferences evolve, integrating sustainability into the core of real estate development is not just a trend, but a necessity for long-term value and relevance.
The real estate sector will play a pivotal role in India’s journey towards achieving its net-zero goals. Adopting sustainable building practices on a large scale is key to protecting the environment and ensuring practical, cost-effective development."
Technological innovation is accelerating this shift. Some firms are implementing high-efficiency cooling systems—such as air conditioners that are five times more efficient than conventional ones, as highlighted in the report—offering both climate benefits and cost savings for homeowners. But the transition can’t be developer-led alone. The report calls for a robust enabling ecosystem: green construction incentives, streamlined approvals, and urgent updates to the National Building Code. States like Gujarat and Maharashtra are already piloting net-zero building codes in urban expansion zones, setting examples for others to follow.
Experts stress that India’s affordable and mid-income housing segments—projected to drive the bulk of urban residential growth—must lead the way. These high-volume markets hold exponential potential for emissions reduction if net-zero principles are embedded from the ground up. Meanwhile, buyer preferences are evolving. Post-pandemic, there’s a marked shift towards healthier, energy-efficient homes. Certifications like EDGE and IGBC are gaining traction, as homebuyers increasingly value lower utility costs and a reduced carbon footprint.
The NIUA-RMI report serves as both a wake-up call and a roadmap. Once considered contributors to urban emissions, developers are now seen as key allies in India’s climate journey. The path ahead demands scale, innovation, and alignment across policy, finance, technology, and consumer behavior. With the right momentum, real estate could well be the cornerstone of a net-zero India—brick by green brick.
