Vinayak Realtech

For realtors, with Green Certifications in Real Estate, one of the most crucial things is to increase revenue and decrease costs. While doing this, they also need to consider how to boost buyers’ convenience, too.

In short, they must find a middle way that is beneficial for them and their customers. Indeed, finding a way like this is a daunting task and currently, green building certification is helping builders with this.

It helps the builders reduce operating costs while boosting the residents’ health. Hence, whether you are a businessman or a potential buyer read this blog to learn more about it. 

What are Green Certifications in Real Estate?

Before getting into deeper insights, understanding the definition is important. The green certificate is a verified statement that the construction meets specific sustainability criteria. Factors like energy efficiency, water conservation, indoor environmental quality, and materials selection are considered to provide the certificate.

It is important to inform you that the Indian Green Building Council (IGBC) and the Green Rating for Integrated Habitat Assessment (GRIHA) are the main concerns that issue this certificate.

The real estate industry has a significant footprint. Thus, the primary goal of this certification is to inform the buyers about the sustainability of the property and encourage the builders to go green.

How is It Helping the Builders Green Certifications in Real Estate?

Green certification is still not very popular in real estate. The main reason for this is the lack of information. Many builders are simply not aware of its benefits.

On the other hand, many think that it increases the initial cost. Therefore they tend to avoid it. However, it is not right. This type of construction only costs 0–2% higher than traditional construction which is affordable.

Well, it is a highly profitable idea for the builders. Here are some winning benefits of the green certification for realtors.

 1. Boost Sales Rate

The housing market is getting more competitive every day. Thus, boosting the sales rate is crucial to stay relevant in the market and green certification is helping with that.

Data shows, there is a 30% hike in demand for green homes in India. According to industry experts, middle-income residents in Tier I cities are willing to pay 5–10% more for sustainable living.

Undoubtedly, the green certificate will help you in a competitive edge and boosting sales rate.

2. Tax Benefits

The Indian government is working hard to promote sustainability. For this, the government is offering significant tax benefits for green projects. For example,  under the Income Tax Act Section 80-IA, builders get tax holidays. Additionally, they can claim up to 100% depreciation on the cost of green building assets, such as solar panels, rainwater harvesting systems, and waste management systems. It helps to reduce overall building costs and boost profitability.

3. Enhances Reputation

According to the National Association of Home Builders (NAHB), building green enhances a builder’s brand reputation. It shows that the builder cares about the health and well-being of the customers.

Also, they care about society and work hard to reduce pollution levels. Naturally, it contributes to creating a loyal consumer base that pays for a longer run.

4. Reduce Depreciation Rate

One of the biggest parks of green building materials is their longer life span, especially, than conventional construction materials. Traditional building materials depreciate faster than green building materials.

Thus, as a builder when you use green products for projects, be assured about customer satisfaction. Moreover, if the project takes time to get sold, you will not need to worry about maintenance costs.

If you are a builder, a green certificate can give the market recognition that your marketing team never be able. It helps you to gain the trust of the buyers and potential customers. Also, it elevates the overall sales rate.

Why should Home Buyers Look for It?

Buying a home is a lifetime decision. It not only controls the future stability but also controls the quality of life. Hence, considering various factors like energy efficiency, health benefits, environmental impact, water conservation, etc is important before the purchase. 

Are you stressed already about how to do it? Don’t stress, go for a home that comes with a green certificate and get it all.

Take a look at its worthy advantages-

1. Reduces Expenses

Green housing means it comes with energy-efficient technologies like solar panels, energy-efficient lights, etc. These amenities help to diminish dependency on fossil fuels and reduce life expenses.

2. Higher Resale Value

Real estate is an investment for the future. You can sell it or put it on rent to secure an alternative income source. However, many times buyers stay tense about the future selling price due to market volatility.

With a green home, you don’t need to face that ever. Due to rising awareness about green homes, you will be able to get the desired reselling price or tenants faster.

3. Better Health

A green home comes with a significant garden area. The open space helps to elevate the overall environment of the housing and contributes to daily workouts. Even if you don’t have time, a 10-minute brisk walk is manageable here.

With this thought, we, Vinayak Realtech always include a garden area with significant seating arrangements for our residents. It helps them in their daily workouts, elevates air quality and works as a community space.

4. Tax Benefits

To encourage home buyers, the Indian government is offering a queue of tax benefits. For example, a home gets gets 50% reduction in one-time building tax, a 1% reduction in stamp duty, a 20% reduction in property tax, etc. These factors help to reduce the overall price and make the property more affordable.

If you are a potential home buyer and thinking of buying a green home; don’t have a second thought, just go for it. From boosting your health to your bank account, it will do a lot for you.

FAQs: Green Certifications in Real Estate

Is green home affordable?

Yes, green homes are affordable. It only costs you 15% more than a traditional home. However, with the tax deductions and long-term benefits, you will be able to handle it.

Why do green buildings cost more than traditional buildings?

Green buildings cost more because of the materials, design, and certification processes.

Green building materials are still not common in India and due to this, it costs more than the regular ones. On the other hand, design and certification take time which increases the overall cost.

How can I know that a project has a green certificate?

You can directly ask the builder about the certificate and other details regarding this.

Wrapping Up

The demand for green homes is rising and it is the best trend ever. Green homes are beneficial for our health and future. Thus, if you are a potential homeowner, do not take your step back because of the higher price. Consider the long-term benefits and hire a broker to get all the tax benefits.

Connect with us to learn more about it.