Why Water Efficiency Must Be Built Into Modern Real Estate Projects

As cities continue to expand in size and density, climate becomes an important point of public discussion. Water is a vital resource essential for life, scarce and irreplaceable, but which has now emerged as one of the most critical resources influencing urban development.

For the real estate sector, water efficiency is no longer an optional sustainability feature. It is a necessity that determines the long-term viability, resilience, and value of projects, irrespective of their nature. Projects that integrate water-efficient systems create communities better prepared to withstand recurring water stress.

India is among the countries facing severe water challenges. Rapid urbanisation, population growth, erratic rainfall, and excessive dependence on groundwater have placed enormous pressure on existing water resources. According to the 2018 Composite Water Management Index released by NITI Aayog, 21 major Indian cities, including Delhi, Bengaluru, Chennai, and Hyderabad, were projected to run out of groundwater by 2020. The report also mentioned that around 600 million Indians face high-to-extreme water stress, while water demand is expected to be nearly twice the available supply by 2030 if significant improvements in water management are not made.

Recent Cases Highlighting The Urgency On The Matter

Mumbai provides a striking example of how water scarcity can affect a metropolitan city. Every summer, several parts of Mumbai experience water shortages as the water level in the reservoirs decline before the arrival of the monsoon. In 2024 and 2025, the city witnessed reduced water stocks in its seven lakes, prompting the Brihanmumbai Municipal Corporation (BMC) to ask the residents to use water judiciously and prepare for possible supply restrictions. Residents in areas, such as Andheri, Malad, Kandivali, Borivali, Kurla, and parts of central Mumbai have frequently reported irregular water supply during peak summer months. Many housing societies have had to rely on expensive private water tankers to meet daily requirements, significantly increasing maintenance costs for residents.

The city’s dependence on distant reservoirs highlights the vulnerability of urban water infrastructure. A delayed monsoon or below-normal rainfall can quickly translate into water rationing for millions of people.

What Needs To Change?

Modern real estate projects can significantly reduce pressure by including water-efficient infrastructure. A rainwater harvesting system allows buildings to store rainwater for groundwater recharge or even for non-potable uses.

“The increasing effects of climate change and the shortage of water in urban areas have led to the need to ensure the efficient use of water in real estate development projects. Not only will this be of significance due to the environmental factors at play, but also because of the increasing water costs which have an effect on the operational costs of the assets being created,” says Rushang Sutaria, senior vice president, SILA.

He adds: “In order to deal with this problem, the developers have to incorporate the consideration of water efficiency at the beginning of the project by using technology that will help them monitor the consumption of water. With digital technologies such as the use of IoT-enabled sensors and smart metering systems, there will be real-time monitoring of water flow, usage patterns and performance of the system. In addition to that, artificial intelligence can be used to predict future consumption and make decisions about infrastructure management, including pump scheduling and filtration backwashing cycles.”

Beyond environmental benefits, water-efficient developments offer tangible economic advantages. Reduced dependence on municipal water and tanker supplies lowers operating costs for residents and commercial tenants. Buildings with sustainable water management systems are also increasingly preferred by environmentally conscious buyers and investors, enhancing long-term property value.

As climate change intensifies and urban populations continue to grow, water security will become a defining factor in city planning. Real estate developers have a unique opportunity to become part of the solution by designing projects that consume less water, recycle more, and preserve natural resources. Building water-efficient communities today is not merely about meeting sustainability goals; it is about ensuring that India’s cities remain livable, resilient, and prepared for the challenges of tomorrow.