As 2025 draws to a close, it is an opportune moment to reflect on the progress made by India’s real estate sector and the direction it must take next. Sustainability has firmly embedded itself into conversations around urban development, investment and consumer demand. The challenge for 2026 is not whether the sector should adopt sustainable practices, but how decisively it can scale them to shape a greener, more resilient urban future.
The past year witnessed strong growth across residential and commercial real estate, supported by rising confidence and a renewed focus on responsible development. Sustainability emerged as a key differentiator, yet 2025 also highlighted structural gaps that must be addressed if the sector is to genuinely lead India’s green transition.
Green gains driven by design and demand
One of the most encouraging developments in 2025 was the growing adoption of sustainable design principles. Developers increasingly embraced energy-efficient layouts, environmentally responsive architecture and resource-efficient planning. Green buildings moved closer to the mainstream, reflecting rising awareness among homebuyers and businesses about long-term operational savings and environmental impact.
Biophilic design gained particular prominence across residential and commercial projects. By integrating natural light, green spaces and organic materials into built environments, developers responded to a shift in consumer preferences towards healthier living and working spaces. These designs not only enhance wellbeing but also align real estate development with broader sustainability and wellness goals.
Constraints that slowed momentum
Despite these advances, the sector faced persistent challenges. Supply chain disruptions and rising construction material costs continued to affect timelines and budgets, particularly for projects incorporating specialised green materials. These economic pressures exposed the tension between sustainability ambition and execution realities.
More critically, the adoption of renewable energy and circular economy practices remained uneven. While select projects incorporated solar power, rainwater harvesting and waste recycling, many developments continued to rely heavily on conventional energy sources. For sustainability to become transformative, such measures must be standard practice rather than selective add-ons.
Why 2026 is a decisive year
Looking ahead, 2026 presents a cautiously optimistic outlook for Indian real estate. Demand across residential, commercial and luxury housing segments is expected to remain robust. In this environment, sustainability must serve as a foundational driver rather than a secondary consideration.
The push towards energy-efficient buildings will intensify, supported by evolving regulations and heightened consumer expectations. Developers who prioritise lower carbon footprints, reduced energy consumption and climate-resilient construction will gain long-term competitive advantage as sustainability becomes integral to asset valuation.
Integrated developments reshape urban living
A defining trend in 2026 will be the growth of integrated and mixed-use developments. By combining residential, commercial and recreational spaces, these projects reduce dependence on transport, ease congestion and limit the environmental costs of urban sprawl. Mixed-use developments also foster community living and optimise land use, making them central to sustainable city planning.
Green certifications for such developments, including global benchmarks like LEED, are expected to play a growing role in influencing investment decisions. For developers and investors alike, sustainability credentials are becoming indicators of future-proof assets.
Senior living and sustainability converge
Another important growth segment lies in senior and assisted living projects. As India’s population ages, demand is rising for housing that integrates healthcare access, wellness infrastructure and sustainable design. These developments must prioritise energy efficiency, accessibility and green spaces, offering not just shelter but an improved quality of life.
Technology and policy as enablers
To meet sustainability goals at scale, the sector must accelerate digital transformation. Technologies such as artificial intelligence, modular construction and 3D printing can drive efficiency, reduce waste and control costs. Innovation will be essential to overcoming material shortages and regulatory complexities.
Scaling renewable energy adoption remains one of the sector’s biggest challenges. Wider use of solar power, energy storage and sustainable materials is constrained by affordability and availability. Policy support through incentives and subsidies will therefore be crucial in making green technologies accessible beyond premium developments.
From opportunity to responsibility
India’s real estate sector stands at a critical juncture. The decisions made in 2026 will shape not only skylines, but environmental outcomes for decades. By embedding sustainability into core business strategy, investing in technology and prioritising integrated, energysustainable communities, the sector can lead India’s transition towards smarter, more liveable cities.
The opportunity is clear. The responsibility is equally undeniable.
