Why Sustainable Living Is the Future of Luxury Real Estate?

The Changing Meaning of Luxury Living

Luxury property has always been about space, quality finishes, great architecture, a range of exclusive amenities and of course the location. Those factors are still very much in play. The expectations of the buyer however are now broader. A lot of people looking at high end property are now also looking at energy usage, water usage, indoor comfort and the environmental impact of the property. A property may look absolutely stunning in the showroom and that will certainly grab your attention, but its performance on a day to day basis is what really counts.

This is making sustainable luxury property a very real thing for the buyer who wants comfort without the associated levels of resource consumption. Think of a house that lets in loads of natural daylight, is comfortable to live in through good design, is very water efficient and allows you to monitor your electricity usage via smart controls. That's a very real way of living comfortably whilst also being more mindful of the resources you're using.

For the buyer looking at premium residential properties in India, sustainability isn't just about putting on some solar panels and having a bit of a garden. It's about the whole property from the get go, the way it's designed, built, maintained and run. The best homes are ones that are beautiful and at the same time perform well in terms of actual value for the owner over the long term. You can have a very modern, very stylish home and still be looking at the practicalities of what it will cost you to own it.

What is Sustainable Luxury Real Estate?

Sustainable luxury real estate is premium property which is designed and/or operated to minimise unnecessary consumption of energy and water, to use resources responsibly and to provide a comfortable indoor and outdoor environment. It's the integration of good architectural design, good construction, efficient equipment, good landscaping and good building management. It's not about putting the green features on as an afterthought or as a gimmick, it's about incorporating them right through the life of the property.

A well designed home could make use of external shading to reduce direct heat gain, efficient air conditioning to manage the internal temperature and appropriately sized windows to facilitate daylight and ventilation. Water efficiency can be achieved through the use of water efficient fixtures and rainwater harvesting. The use of durable materials is also a possibility to reduce the number of repairs and replacements.

The IGBC Green Homes programme looks at homes across a number of areas: site planning, water, energy, materials and indoor environmental quality. It's a useful framework for understanding that true sustainability is a multi-faceted thing and not simply about one 'green' feature.

IGBC Green Homes Rating System

Ultimately it's about achieving a balance between the standard of living you'd expect in a luxury home and the use of resources. The actual benefits will of course vary depending on the design, the climate, the number of occupants, the standard of installation and the level of maintenance thereafter.

Why Sustainability Matters in Premium Real Estate

Several practicalities are making sustainability relevant to the luxury buyer. Environmental awareness is one of the factors, but comfort in the everyday use of the property, the cost of running it and the quality of the environment around it are all very much part of the equation.

Lower Resource Consumption and Operating Costs

Big houses can be very electricity hungry (for AC, lighting, appliances, pools etc). The level of consumption can be controlled through good building design and appropriate equipment. Likewise water consumption can be minimised through the use of water efficient fixtures and good irrigation management.

Actual savings will vary considerably. The performance of a property will be dictated by its orientation, its insulation, the efficiency of its equipment, the local utility rates and the habits of the residents. Buyers should therefore be asking for operating data where possible rather than just accepting the general claims about the expected savings.

Improved Comfort and Indoor Living Conditions

Natural daylight, good ventilation, effective shading and well thought out indoor spaces all contribute to a better daily experience in a premium property. All of this is very much relevant in the Indian context where you have the problems of seasonal heat, humidity, dust and the need for air conditioning.

Natural ventilation has to be appropriate to the local outdoor air quality and weather conditions. A sensible design will consider when it is appropriate to open windows and when filtered mechanical ventilation would be a better option.

Access to Green Spaces and a Better Outdoor Environment

Landscaped gardens, shaded walking paths, native plants and well thought out outdoor areas can all go a long way to making a residential community a more pleasant place to live. The vegetation can provide shade and assist with rainwater management (depending on the design and the site conditions).

For families and for professionals looking to strike a balance, these features can be a great addition to the architecture and the range of amenities of a property. Their actual worth is down to how well the spaces are designed, how accessible they are and how well they are maintained.

Green Building Features to Look for in Luxury Homes

Not all 'green' properties are created equal. You have to look at what features are actually in place, how they operate and whether the building management team look after them.

Energy Efficiency and Renewable Power

Energy efficient luxury homes can have rooftop solar panels, efficient air conditioning, LED lighting, energy rated appliances and building design to minimise unwanted heat gain. High performance windows, appropriate shading and insulation will all help to maintain a comfortable internal temperature.

Solar can offset some of the electricity use of a property when it's correctly sized and installed. Buyers should be clear on whether the solar equipment is for individual homes or for common areas, how the credits or shared benefits are to be allocated and whether battery storage is included.

Water Conservation and Green Spaces

Water management is of particular importance when looking at residential properties in water stressed urban areas. Rainwater harvesting, low flow taps, efficient showers, dual flush toilets and the reuse of treated wastewater are all viable options for reducing the demand on potable water supplies provided the systems are appropriately designed and operated.

Landscaping is another area that warrants similar attention. The use of native or climate appropriate plants, efficient irrigation and appropriate soil preparation can all go a long way to reduce maintenance and watering requirements. Buyers should also ask where the water for the gardens, the pools and all the other common areas comes from.

Smart Home Technology and Sustainable Materials

Smart thermostats, occupancy sensors, automated lighting and energy monitoring systems can all be of use in helping people to understand and manage their household consumption. EV charging infrastructure can also be a useful consideration for those who own or are intending to purchase an electric vehicle.

Construction materials are important too. Good finishes, appropriately sourced timber, low emission paints and materials that are appropriate for the local climate can all be part of a more considered building design. A product shouldn't just be deemed sustainable because it's 'natural' or 'recycled'. Its durability, the way it's made, how it's transported and how appropriate it is for the job at hand all need to be taken into account.

Buyers must check that the features they're looking at are actually there and working. A proposed amenity, a marketing illustration and a working system are three very different things.

How Sustainable Homes Can Benefit Property Buyers

The benefits of sustainable living are very much apparent when you look at the cost of the property beyond the initial purchase price. An energy efficient property will use less electricity to keep the house at a comfortable temperature. Water saving fixtures will use less water. The use of durable materials and good building systems in general will also tend to reduce the need for certain types of repair and replacement over the lifetime of the building.

Consider two apartments of comparable size in Gurugram. One has a lot of glazing with very poor solar shading, inefficient cooling equipment and little control over water use. The other has better solar shading, efficient equipment, water saving fixtures and systems that allow you to see your energy use. They could be just as 'luxurious' in appearance but their actual operating requirements would be very different.

The second flat isn't necessarily going to be cheaper to own. The total cost will be influenced by purchase price, maintenance fees, equipment replacement, system performance and the habits of the residents. Wherever possible you should be looking at actual utility bills and maintenance records.

Sustainability can also lead to a more comfortable lifestyle. Good lighting, good ventilation, useful green space and good building systems all contribute to a more pleasant home. For a family who are going to be in a house for a long time, these sorts of day to day benefits may be just as important as any potential cost saving.

Does sustainability influence the value of luxury property?

Sustainability can play a part in how a property is viewed by the buyer but its impact on value is not in any way consistent. A property with proven energy efficiency, low running costs and good amenities in good order could be attractive to a buyer who is looking at it as a long term investment. In certain markets it may well be a differentiator from other properties of a similar nature.

Green luxury doesn't necessarily translate into better appreciation or better rental returns. All the usual suspects still apply in terms of location, connectivity, developer, build quality, market demand, the legal docs and the purchase price.

Investors should look at sustainability as one element of a wider property assessment. A certified project in a bit of a backwater may not be the right one for every buyer, whereas a property in a good location with very little in the way of green credentials may still be a very good performer in its own market.

It's also vital to make the distinction between certification and actual operating performance. A rating tells you something about compliance with a given framework, the results that residents actually get are a function of the quality of the construction, the quality of the system commissioning, the level of occupancy and the ongoing management.

The sensible approach is to look at the financial underpinnings of the property as well as its environmental attributes. The potential for savings and the potential for a good resale are things you'd want to look at, not things you'd assume would necessarily happen.

Sustainable Real Estate Trends in India

Sustainable property development is increasingly relevant in the Indian residential sector as cities grapple with energy demand, water, urban heat and resource efficiency. The opportunities and challenges in this space will vary from market to market with Gurugram, Bengaluru, Mumbai, Hyderabad and Pune all presenting different scenarios depending on the climate, the infrastructure in place, the amount of land available and the preferences of the buyer.

India has got in place of frameworks which assist property buyers in understanding the sustainability of a building.

• IGBC Green Homes: The Indian Green Building Council's residential rating programme covers energy efficiency, water efficiency, materials, site planning and indoor environmental quality.

IGBC Green Homes Rating System

• GRIHA (Green Rating for Integrated Habitat Assessment) looks at sustainability right through the lifecycle of the building, from design and construction to operation. It takes into account the diverse climatic conditions in India.

GRIHA

• Eco-Niwas Samhita: Developed under the aegis of the Ministry of Power, this is India's residential building energy conservation scheme which promotes more energy efficient building envelopes and better thermal comfort.

Urja Dakshata Information Tool

These are useful benchmarks when looking at sustainable real estate in India. You do need to check the actual rating system, version, certification level, project name and scope. A developer saying a project is registered or pre-certified is not the same as it being fully certified.

Local conditions do matter. In Gurugram for instance buyers may want to look at summer cooling, water supply, rainwater harvesting, wastewater treatment and the maintenance of the landscaped common areas. In Bengaluru rainwater management and water supply may be the key issues. A sustainable property should be responding to the local context rather than just going in and doing the same thing as you would in another location.

How to Evaluate a Sustainable Luxury Property Before Buying

A structured assessment will help the buyer to separate the real environmental benefits from the more attractive marketing claims. As part of the property visits and document review process, consider the following checklist.

• Energy performance: find out about lighting efficiency, air conditioning specs, shading, insulation and any available energy consumption data.
• Water management: rainwater harvesting, wastewater treatment and reuse, water efficient fittings and the reliability of the supply.
• Construction materials: find out about the materials specification, durability, low emission finishes and the maintenance requirements.
• Green certification: Request the documentary evidence of the project's certification or rating. Confirm whether it is proposed, pre-certified or finally certified.
• Maintenance costs: the cost of common area maintenance (which will include the cost of running the solar equipment, the water treatment plant, the lifts etc.) and the cost of operating the various shared systems.
• Developer and project quality: review the construction progress, the completion documentation, the developer's track record and the quality of project management.
• Location and connectivity: think about the implications of commuting, public transport, the range of services on offer, drainage and the general character of the surrounding area.
• Operational evidence: where available look at the electricity consumption, the water bills, the maintenance records and the equipment servicing history.

For a property that's still under construction, find out which of the sustainable features are actually contractually agreed and which are merely proposed. For a completed property you need to look at the actual equipment and get the documentation to prove that the key systems are working.

Buyers should also look at the total cost of the purchase against the anticipated running costs of the property. A premium feature only has real value in terms of the household's needs and will only be of value if it can be maintained for the whole of its life.

The Role of Professional Real Estate Advisory

Selecting a luxury property is a balancing act of a number of different things: location, lifestyle, budget, build quality, the documentation, your future requirements and your investment objectives. Sustainability is another dimension of the decision, with developers using different standards and different marketing language.

A professional property consultant can assist the buyer in the process of shortlisting locations, comparing the various residential projects, looking at the information that's available on the projects and identifying the questions that would require the input of a technical or legal advisor. You may also need to engage in independent architectural input, the services of a building performance professional and/or a legal advisor to assess the energy performance, the construction specification, the certification documentation and the compliance of the property.

For the investor the process should be one of comparing the purchase cost, the likely ownership costs, the local demand, the rental potential and the resale potential. That way you're looking at the sustainability as well as the wider financial and practical issues.

Arvvenza Realty assist buyers and investors in looking at property opportunities in India and the UAE. If you're looking at premium residential property then you can get in touch with Arvvenza Realty to discuss your requirements and look at the various options available.

Conclusion: A More Thoughtful Approach to Luxury Living

Sustainable luxury property is a much more holistic concept than just beautiful architecture and the provision of the usual suite of exclusive amenities. All of that is still very much part of the equation but sustainability in the form of energy efficiency, water efficiency, indoor comfort, the provision of green space and responsible building management can all contribute to a more realistic and practical form of ownership.

For the buyer looking at a luxury property investment in India the key is to look beyond the superficial. You need to assess the location, the quality of construction, the operating costs, the sustainability credentials and the supporting documentation. Green certifications and such things can be useful but their actual benefit is down to how well they are implemented and how well they are maintained over the long term.

Sustainability should not be seen as a magic bullet for securing a good price or achieving a good return on investment. It is one of a number of factors that can help a buyer to identify a property that is appropriate to their way of life and their longer term aspirations.

To look at some premium property opportunities and talk you through your requirements, head over to Arvvenza Realty and take a much more informed approach to your next property purchase.