Green buildings have been associated with the word ‘incremental costs’. This incremental cost to the developer may come due to use of alternative materials, adoption of renewable energy, green certifications, etc. At the same time, green incentives are also being awarded to developers by several states. For example, Haryana and Pune Municipal Corporation offer additional floor space index (FSI)/ floor area ratio (FAR) for buildings certified green by IGBC/ GRIHA. All products of Mahindra Lifespaces are certified green.
We have a 100% green portfolio since 2013. All our products are certified green. Three of our projects received the highest rating levels of green certification under IGBC and GRIHA rating system. For these products, we also received incentives from the state government/ urban local bodies:
We assessed the impact of these projects on our revenue as well as the value created for customers.
The additional FSI in Luminare increased our revenue by INR 800 million. While our overall project cost increased in Tathwade, the rebate in premium translated to an incentive of upto INR 32 million and a net profit of INR 20.8 million. Additionally, the green certification allows us to position ourselves as innovators in the industry, while establishing trust with customers and investors. Furthermore, our customers are eligible to receive a rebate of upto 8% in property tax which translates to INR 800 to INR 1,000 per dwelling unit.
We also calculated and compared the total cost of ownership for conventional and green apartment costing INR 5.5 million. Due to reduced maintenance costs, and savings in energy and water bills, the total cost of ownership reduced to INR 7.1 million from INR 7.6 million.
Under the umbrella brand of Lifespaces, We are building multi-family apartments in gated communities in Mumbai, Pune, Bengaluru, and the National Capital Region. We also endeavour to fulfil the aspirations of the emerging middle class in the country to own a home by providing quality housing at affordable prices through our business vertical – Happinest. Green features are common across all our projects.
2. Salient Features of our Sustainable Products
Under the brand name of Mahindra World Cities, we are developing integrated business cities to improve the quality of life, living, and livelihood for our occupants, and provide integrated infrastructure for companies. Built on the philosophy of 'Livelihood-Living-Life’, these cities break down the traditional ‘wheel and spoke model’ of living and commuting with the mixed-use approach where businesses and residential customers co-exist in a safe, separate, and gated community.