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, managing director, Hiranandani Group talks about
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 dont 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 consumers 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. Thus, essentially a
green building differs from a common one in terms of its ecological footprint.

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%
at the onset depending on the type of building and the design. But you recover
this cost in 3-5 years and after that period it is a profitable proposition. So
the energy efficiency, though it costs more in the initial stages, you recoup
the cost in a matter of years. Plus the quality of life for individuals that
stay or work in such buildings is infinitely more comfortable and healthier.

How did Hiranandani get on to the green building bandwagon and what is in
the offing?

We started with BG House and that was the first green building project for
us; we worked closely with British Gas who was the client. It became the first
platinum rated LEED building in Mumbai. Similarly we have scores of projects in
the offing, from having a green complex in Chennai to another in Panvel.

Are the 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, as all
the costs are taken into account, 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

shaswatc@cybermedia.co.in