Additional FAR could boost Green Housing in India

Burgeoning population and stress on existing natural resources has triggered the need to boost sustainable or Green Housing in India. In the upcoming Union Budget 2015-16, the real estate industry expects the Government to provide incentives to give the required thrust to this sector. Offering higher Floor Area Ratio (FAR) and other tax sops and rebates are a few suggestions that the developers have come up with.

Did you know? Buildings (residential, commercial and industrial) account for 40 per cent of the total energy consumption.

– Aman Nagar, Director, Paras Buildtech

Currently, the technology needed to develop Green Buildings is quite expensive, making the projects unfeasible for developers. Homebuyers too avoid zeroing-in on such projects as these cost almost 10-15 per cent more than the normal housing projects. Provision of incentives and reduction of construction and acquisition costs would only boost demand for eco-sensitive housing.

Reiterating, Arjunpreet Singh Sahni, Executive Director, Solitairian Group says, “Green technologies are too costly and in order to promote such developments, Government should come forward to offer incentives in the form of tax sops and reduce the various tax duties levied on the developers engaged in developing Green projects. Government can also help the developers by awarding extra FAR in their projects so that more housing units can be constructed on limited land.”

“Not only developers, but incentives could also be extended towards buyers to encourage them for buying such homes. Relaxation in home loan interest rates and rebates in stamp duties could be some of the steps which could impact demand for Green Homes, significantly,” adds Sahni.

Why should you go for Green Buildings?

Despite the higher initial cost, Green Homes make a profitable investment for they aid in saving energy and thus, costs related to it. As per estimates, the additional cost put in purchasing a Green Home can be recovered within 3-5 years in the form of reduced electricity and water bills.

Green homes can reduce energy consumption by 50 per cent and water consumption by 60 per cent.

The construction of Green Homes involves use of sustainable materials which do not have adverse effects on the environment and the health of its inhabitants. Apart from ensuring enough use of natural day light and ventilation, Green Homes also focus on generation of its own energy. Recycling and reuse are a major feature of Green Homes. Passive use of solar energy and rain water harvesting are some of the common techniques used in such homes. Overall, the practices used in Green Homes can reduce energy consumption by 50 per cent and water consumption by 60 per cent.

Considering Green Homes a win-win situation for the Government and the homebuyers, it is expected that the Government would do their bit to boost this segment of real estate. Since the Union Budget is just three days ahead, let’s wait and watch what policy makers have in store for the industry!

 

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