Annexure III

GREEN BUILDING INVESTMENTS IN INDIA

Increased awareness among homebuyers and real estate developers has enabled the green building sector to emerge as a promising investment option. Rating and certification agencies such as GRIHA, LEED, IGBC, and IFC-EDGE are playing a proactive role in bridging the performance gap (mismatch between design and operation of a green building) by incorporating requirements to verify that buildings are used in a way that maximizes the effectiveness of efficiency measures.

Although the initial investment required to make a building green may be higher than a conventional building, the long-term benefits of green buildings more than compensate for the additional costs incurred. Several state governments are competing with each other to provide policy and financial incentives to attract investments in green buildings. Between 2016-2018, about 65.8 million square feet of area came under the green building sector amounting to INR 283 crores in investments.

Figure C: Total green building investments (in inr crores) and project area (in million sq. ft.)