The Indian real estate sector has gone green despite the global economic slowdown. The total supply of green realty space has doubled to 6.8 million sq ft in September 2009 from an early- 2007 level of 3.8 million sq ft, said a report, ‘Green Buildings: Benefits and Future Outlook’, published by DTZ International Property Advisers Pvt Ltd. The report added that the supply of green space has been well contributed by various real estate segments, with the IT/ ITeS sector contributing as much as 58 per cent of the total supply in the country.

Though commercial realty has been the major contributor to this segment, residential real estate is yet to join this green brigade. And the study put the blame on the developers of residential units. Commenting on the prospects of such developments in India, Priyankar Bhikshu, associate director (consulting and research), DTZ International Property Advisers, said, “It is expected that the trend of green buildings will see better acceptance and implementation in India.

In the short term, the main stimulus would need to come from occupiers. However, the concept would only get entrenched on a sustainable basis when developers and not just occupiers find it a lucrative proposition.” The development cost of a green building, which is five to eight per cent higher than of a conventional one, has been a major hurdle. As a result, lease rentals in green building are relatively higher. However, according to the report, due to substantial savings of 15 to 20 per cent that comes at the operating level (energy, water and maintenance), occupiers have shown good propensity to take up green space.

Varun Khanna, director, IREO, said, “Usually, developers pass on the extra costs incurred to construct green building to buyers.” The report added the recent drive initiated by private and government stakeholders would boost green buildings in the country. Even banks are considering sops for private green building projects.

Public sector lender State Bank of India (SBI) has started offering concessions in the form of interest rate reduction of upto 0.25 per cent on green developments in building projects. But the developers’ lobby is yet to give a response. A well- known Delhi-based developer, when asked about the bank’s discount, said, “None of the nationalised or private banks is offering any kind of incentive or discount for developing a green project.” Few such as Vidur Bharadwaj, director, The 3C Company, are aware of the incentives on offer. Bharadwaj has applied for SBI’s offer for carrying out the construction activity at the company’s Noida project Lotus Boulevard. Said Bhardwaj, “We have applied to SBI also for getting the funds. We are still waiting for the sanctioning of the loan. unfortunately, awareness among developers is still poor.”

Source: http://www.indianrealtynews.com

Popularity: 2% [?]