Sustainable building market made significant strides in Tier I cities of India: Global Network for Zero 

The Indian market for sustainable buildings has made significant strides, especially among Tier 1 cities, and many construction players are already benchmarking their projects against global standards, according to Global Network for Zero (GNFZ), an international initiative aimed at accelerating the transition to a zero-emissions world.   

Mahesh Ramanujam, President and CEO of the Global Network for Zero (GNFZ), who has been talking to major Indian construction players on low-carbon buildings, said players like DLF, and companies like ITC Hotels have standardised sustainable practices across their portfolio. 

“These developers have recognised that sustainability is no longer a premium offering but an essential feature for modern construction. The good news is that sustainability is becoming an entrance criterion for projects, not a luxury. The challenge now is ensuring that sustainable practices are consistently adopted across all levels of the market,” said Ramanujam, who was President and CEO of the US Green Building Council (USGBC). 

The green building market in India is set to contribute to Rs 3.2 lakh crore by 2025 and there is a growing emphasis on sustainable construction with green buildings becoming a larger share of new developments, according to a white paper ‘Pathways to sustainable living & building practices,’ by Resurgent India and NAREDCO released in June this year. 

GNFZ has been working with Indian cement, steel, and glass players, the three most critical components of any building in optimising material use. 

“Reducing their emissions is a massive challenge because these are very energy-intensive industries, and they don’t have easy solutions. Companies like Aditya Birla, JSW Steel, Adani Cement, and others are implementing comprehensive renewable energy strategies and building gigawatts of capacity while they continue to increase steel, and cement production due to high demand. This is an exciting trend and direction for the industry,” he said. 

Buildings account for nearly 40 percent of global CO2 emissions and 30 percent of global energy consumption and there has been a growing focus on green buildings. 

What are the price points that these sustainable buildings demand? Experts say that as the demand increases, the prices are almost the same as traditional construction practices or sometimes even lesser for green structures. 

“There are different levels of sustainability in housing, and the price reflects that. A baseline sustainable home — using efficient materials and design — should be priced similarly to a traditional home. If it’s significantly more expensive, something isn’t right in how it’s being built or sold. The key is that a basic sustainable house can be cost-effective and still meet green standards,” added Ramanujam. 

Advanced sustainability features — like cutting-edge energy-efficient systems, solar installations, or water recycling setups — might see a 2-5 percent premium compared to a standard house. However, this extra cost comes from the additional technology and materials, but it’s an investment that pays off in the long run with lower utility bills, better indoor comfort, and increased resale value are just some of the benefits.