Prashant Vermaa Business Blog

With the accelerating effects of climate change, sustainable living has become the only viable path forward. The corporate world holds a crucial role in navigating this challenge. Industry stalwart Dr Niranjan Hiranandani, Chairman of NAREDCO and the Hiranandani Group, offers his perspective on why the real estate sector must urgently adopt sustainable practices.

How are climate change and rising pollution levels affecting the real estate sector? What are the implications?

The construction and real estate sector is at a critical point, with climate change and increasing pollution reshaping how it operates. Its exposure to climate risks has never been more evident. Rising sea levels, soil erosion, and extreme heat threaten infrastructure resilience, while deteriorating air quality affects both livability and property demand in cities. These challenges lead to higher maintenance expenses, lower property valuations, and an urgent need for adaptive strategies. A shift towards green development policies and a sustainability-first mindset is essential. The industry must transition to a circular economy.

Is the sector likely to face more severe threats than what it already has?

Yes, the threats facing the sector are becoming more serious. To ensure the future of urban development, sustainability must become a foundational value. Infrastructure that is resilient and aligned with global sustainability benchmarks has moved from being optional to being indispensable.

What steps can the sector take to become more sustainable?

Traditionally known for its environmental impact, the real estate industry is now becoming a leader in the sustainability movement. Industry frontrunners are driving the adoption of eco-friendly practices, incorporating energy-efficient designs, sustainable building materials, and renewable energy sources. Innovations in waste management, water-saving technologies, and smart infrastructure are reshaping cities. Certifications like IGBC and LEED are setting global benchmarks and ensuring compliance. Through circular construction practices and environmentally conscious urban planning, the sector is reducing its ecological footprint and paving the way for a sustainable, resilient future. However, the pace of adoption remains slow due to high upfront costs and the absence of meaningful incentives for green development. Some fiscal encouragement for developers would make a significant difference.

Carbon neutrality is gaining importance. How is the real estate industry responding?

Driven by purpose and innovation, the real estate industry is actively working toward carbon neutrality. There’s a transformation underway in how buildings are designed, constructed, and operated. However, this shift brings several challenges. High initial investment and the need for technical expertise often discourage the adoption of energy-efficient solutions. Moreover, upgrading existing structures to meet modern standards is complex and costly. Partnering with global sustainability bodies and adhering to green certification protocols is helping to measure and ensure progress.

Energy consumption from polluting sources has long been an issue. What solutions are emerging within the sector?

The industry has begun addressing this issue with innovation and sustainable strategies. Energy-heavy construction processes, reliance on fossil fuels, and inefficient building designs have long intensified the sector’s environmental footprint.

But today, the industry is reaching a turning point. Developers are increasingly seeking green building certifications, embracing renewable sources like solar energy, and deploying energy-saving technologies such as intelligent HVAC systems.

Urban development is also evolving towards mixed-use communities, which help cut down transportation emissions and reduce carbon footprints. While there is still progress to be made, these developments reflect a strong intent to reduce energy usage.

There is a broader goal to achieve sustainability, yet global political shifts seem to be steering away from it. How is this affecting sustainability funding?

While international sustainability targets have provided a clear vision, shifting political climates are casting uncertainty over their long-term commitment. This could potentially impact funding and momentum for sustainability, particularly in industries dependent on policy backing.

Nonetheless, political winds aren’t the only driver of change. Increasingly, businesses and investors see sustainability as a valuable proposition, ramping up private investment, ESG-aligned funding, and strategic partnerships.

Ultimately, the path to a sustainable future demands resilience and unity where stakeholders across sectors stay firmly committed, no matter the political landscape.