Green Home | Eco-Friendly House & Sustainable Buildings - Kotak Bank
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07 DECEMBER, 2022

An eco-friendly house is a new concept in western countries but it has been followed in India since ancient times. We can find green homes in villages across India, outnumbering modern buildings as they are cost-effective and environmental friendly.

Artificially produced construction materials like concrete, bricks, and glass are highly durable and make construction easier. The structure made from these requires artificial lighting and mechanical cooling. It increases building maintenance costs plus affects the environment.

In such a scenario, green buildings in India can become the future of sustainable living. Both government and private construction companies are promoting eco-friendly houses to save the environment and reduce building costs significantly. We also offer Home Improvement Loans to homeowners looking to convert their existing homes into sustainable buildings. Let’s discuss the benefits, standards, challenges and solutions related to Green Home.

Benefits of Living in a Green Home

Green Homes offer numerous long-term benefits, making them ideal for sustainable living both for now and the future. Some of the top advantages of building an eco-friendly house are.

  • Improves energy and water efficiency: Green Homes include rainwater harvesting systems, low-flow bathroom appliances and energy-efficient LED bulbs. Also, these sustainable buildings have L-shaped windows installed that maximise the use of sunlight. These features save the environment and help you save money on electricity and water bills.
  • Less use of Non-renewable Resources: Compared to conventional buildings, the energy needs for a green home are minimal. This is due to the features that ensure maximum utilisation of natural resources and less use of non-renewable sources. Sustainable buildings include less toxic paints and recycled metals. They use more natural light and use solar-powered appliances.

The initial costs of constructing green buildings in India might be expensive but with utility bills and maintenance savings, you can easily recover the full   cost in the long run. You can also opt for Home Improvement Loans from top banks with affordable interest rates. This will also help reduce the cost of building eco-friendly houses.

  • Offers excellent Return on Investment (ROIs): Green homes offer excellent ROIs for both developers and homebuyers. Since eco-friendly houses have high material efficiency, energy-efficient structures, and boosted occupancy rates, they equate to high property value.
  • Creates a pleasant living Environment: Green homes often have wall patterns and roofs that are partially or fully covered with greenery. These roofs are made over a waterproofing system. Since this system is deployed on top of a flat or slope-shaped roof, it can work as a drainage system. It retains rainwater and protects your home from floods and leaks. Such a green covering will also give your home a refreshing energy and a pleasant feel.

Challenges that can Hinder the Adoption of Green Homes

Most prospective homebuyers are unaware of the perks offered by eco-friendly houses. Those who have some idea might not invest in green homes due to higher initial investment and other overhead costs. The need for more awareness about green homes and lower demand among home buyers is a hurdle in developing sustainable buildings.

What Steps can be Taken?

This is an ideal time to make investments in green buildings in India as India has the technology and eco-friendly building materials sourcing availability. Since more and more big and small entrepreneurs are entering the real estate development world, they can collaborate to make green homes popular. Promoting eco-friendly houses will make it easy to replace conventional buildings.

Governments and financial institutions must step in and offer Home Improvement Loans at lower interest rates so that homebuyers go for eco-friendly houses without worrying about costs.

Here are some strategies that can make green homes a mass success.

  • Eco-Friendly Materials

The lack of availability of eco-friendly building materials at affordable costs can sometimes become a major hurdle. It requires complete attention from both developers and authorities. Here, both central and state governments can establish R&D and material testing labs in Tier-1 to Tier-3 cities. Locally manufactured, high quality and cost-effective sustainable building materials can also be used to attract more developers so that they can invest in green home projects.

  • Integrated Frameworks

Active building audits and training programs should be incorporated into integrated policy frameworks to promote eco-friendly houses. An example of this is a higher floor-to-area ratio, which is likely to support the improvement in the number of green homes being constructed. Additionally, the complete adoption of policies such as the Energy Efficiency Label for Residential Buildings, Eco-Niwas Samhita Building Code, and Energy Conservation Building Code drive further investments in eco-friendly houses.


A large-scale adoption will require a few more years despite the concept of green building popularity. Although building eco-friendly houses may be perceived as an expensive investment in the initial stage. The cost you save due to 30%-40% energy savings will make up for the investments in the long run. Also, these days banks offer Home Improvement Loans at affordable interest rates that can be used to convert existing buildings into green homes with certain modifications.

We can see large-scale adoption of green homes once most Indians realise the benefits of eco-friendly houses. Saving the environment is in our hands, and green homes are vital to achieving it.

Go green!

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.