Customers are happy to pay a premium for green buildings

Hiranandani Constructions are among the most lauded realty developers in
the city of Mumbai, renowned for their avant-garde and high-end complexes. It
has been some years since the group has ventured into the green building space
as well. Niranjan Hiranandani, MD, Hiranandani Group on the uniqueness of green
buildings and how the movement will only catch pace with time. Excerpts

What is the uniqueness of green buildings, which the rest don't have?

Green buildings really are eco-friendly buildings. The eco-friendliness
starts right from the design of the building, materials, components, the manner
of construction, and ultimately to see that there is efficiency in use of the
building, both from the consumer's point of view and in terms of conserving
energy. The same can be achieved through a multitude of means such as efficient
use of daylight or circumspect use of water as a resource.

What is the incremental cost that goes into making a building green?

While there is an additional cost of building such green buildings, 10-15
percent at the onset depending on the type of building and the design. But you
recover this cost in three-five years and after that period it is a profitable
proposition.

Are customers ready to pay a premium for a green building?

There was always the hesitancy to pay more, but now they are glad to pay us
more because they are able to see the value in the project. The Municipal
Corporation of greater Mumbai has also got a proposal wherein green buildings
would be given some special incentive in terms of municipal taxes. If that
happens then there will be double incentive for people to invest in energy
efficient buildings, first in terms of reduced costs due to energy efficiency
and the second could be the lower taxes as well. And quite like the people who
went in for more fuel efficient cars, I am sure that in the coming days, people
will be conscious in their decisions, and in fact would be happy to shift into a
green complex rather than a normal one.

Shashwat DC

shashwatc@cybermedia.co.in