Role of responsible development in growing cities
Responsible development must prioritise sustainable infrastructure and community well-being in rapidly growing urban centres, says the author.
by Anand Agarwal June 16, 2026
Every city that grows fast also faces a choice: build for today, or build for the next generation. In Pune, that choice is playing out in real time. The city added over 7.3 million residents by 2024 and is growing at roughly 2.5% each year. ¹ Residential prices rose 14% year-on-year in 2024 alone. ² New employment hubs are forming, infrastructure is expanding, and demand for quality homes is outpacing what the market has historically delivered. In this environment, responsible development is not an abstract principle; it is the most practical thing a developer can do.
For those of us building in this city, the question is no longer whether to take responsibility seriously. It is how to do it well, consistently, at scale, and in a way that holds up over time.
Planning for tomorrow
Responsible development begins with thoughtful planning. In rapidly growing cities, projects cannot be viewed as standalone structures. They must integrate with the surrounding infrastructure and align with the city’s long-term growth trajectory. Connectivity, road networks, public transport access, water management systems, and proximity to employment hubs all determine whether a development truly adds lasting value to the urban fabric.
Pune’s office market illustrates why this integration matters. Commercial leasing grew 40% year-on-year in 2024, and the city now hosts one of India’s most active GCC ecosystems.³ As workplaces expand and new corridors emerge, residential development must respond intelligently, not chase demand reactively, but anticipate where communities will form and what infrastructure they will need.
That kind of foresight requires developers to be closely involved at every stage, from architectural planning and site selection to the quality of materials used. Coming from a background in construction materials, I have seen firsthand how decisions made early in the design process determine the liveability and durability of a home long after it is handed over.
Navigating regulatory changes
India’s regulatory framework has evolved significantly over the past decade to encourage greater accountability across the sector. The Real Estate (Regulation and Development) Act (RERA) was one of the most consequential reforms in modern Indian real estate. It introduced mandatory project registration, financial transparency, disclosure requirements, and faster grievance redressal, which together improved buyer confidence and raised the floor on developer behaviour.
One of RERA’s most impactful provisions requires developers to maintain dedicated escrow accounts, with 70% of buyer funds ring-fenced for that specific project’s construction and land costs. This single requirement significantly reduced fund diversion and improved financial discipline across the sector. More recent reforms, often referred to as RERA 2.0, have tightened compliance further through stricter penalties for delays, mandatory audits, and enhanced digital complaint systems.
Pune’s market has responded. Property registrations rose 25% in 2024,⁴ and Pune ranked second among all Indian cities in residential sales volume, with approximately 81,000 units sold.⁵ That level of market activity requires regulatory credibility to sustain. Buyers today are more informed and more demanding; they need to trust the system before they trust a developer.
Embracing sustainable practices
Rapid urbanisation has placed serious pressure on natural resources, making sustainable construction practices increasingly important for the long-term viability of Indian cities. Green-certified developments, energy-efficient systems, rainwater harvesting, wastewater recycling, and the preservation of open spaces are becoming standard components of modern residential planning, not optional additions.
The numbers reflect a genuine shift in buyer preference. In Pune, approximately 45% of new developments now incorporate green technologies, and homes featuring these elements have seen 20–25% higher demand.⁶ Government policies at the state level are reinforcing this direction, with development frameworks placing greater emphasis on sustainability, efficient land use, and integrated urban planning.
In my own experience, the developers who will lead this next phase are those who made environmental responsibility a cultural commitment before it became a regulatory or commercial requirement. We started embedding green-space and plantation programmes into our projects nearly a decade ago, not because buyers were asking for it at the time, but because it was the right way to build. That early discipline has shaped how we think about every project since. Sustainability cannot be a feature added near the end of the design process. It needs to be part of the brief from day one.
Focusing on people
Responsible development is not only about compliance or sustainability metrics. It must remain deeply human-centric. Today’s homebuyers are far more informed and aspirational than before. They are not purchasing square footage; they are investing in a lifestyle, a community, and a long-term living experience.
This shift is visible across Pune’s residential market. Demand has moved decisively toward integrated developments that offer connectivity, social infrastructure, wellness amenities, and community-centric planning. Access to healthcare, educational institutions, workspaces, recreational areas, and open green spaces has become as important as the apartment itself. Luxury apartments priced above Rs 1 crore crossed 50% of total sales volume in 2024 for the first time, a clear signal that buyers are willing to pay for quality when quality is genuinely delivered.⁷
Design has to follow the user, not the other way around. The principle I keep coming back to is eliminating dead space; every square foot should serve the person living there. One example that has stayed with me: when we developed a residential project designed specifically for women homeowners, it was not a marketing decision. It was a response to a real gap in how the market was thinking about its buyers. Nearly 80% of those residents today are women, which reinforces something I believe firmly: when you design for a specific, underserved need, the market does not just respond, it rewards you for it.
Efficient layouts, balanced density planning, pedestrian-friendly spaces, and shared community environments are no longer differentiators. They are becoming baseline expectations.
India’s real estate sector is projected to grow from approximately USD 620 billion today to over USD 1.4 trillion by 2035, nearly tripling in size over the next decade.⁸ That growth brings significant responsibility. As cities continue to expand, real estate will increasingly shape mobility patterns, environmental outcomes, social interaction, and overall urban well-being.
Developers have a larger obligation, not only to customers, but to the city itself. The Indian real estate sector has become more structured, accountable, and mature over the last decade. The direction of change is clear, even where implementation is still catching up with intent.
The true measure of urban development over the next decade will not be the number of towers built or the acres developed. It will be whether the communities created are worth living in, safe, connected, sustainable, and genuinely responsive to the people who call them home.
My own benchmark is simple: every project we build should meet the standard I would expect for my own family. That means quality that does not cut corners, timelines that are honoured, and designs that respect how people actually live. It is not a complicated philosophy, but it requires discipline to hold to it through the pressures of a fast-moving market.
For developers who are serious about this business for the long term, responsible development is not a constraint on growth. It is the only growth strategy that holds. Cities like Pune will keep expanding. The question is whether the real estate sector rises to meet that moment with the rigour and imagination it demands, and whether individual developers choose to hold themselves to a higher standard, not because regulation requires it, but because building well is the point.
About the author: Anand Agarwal is the Managing Director at Ceratec Group.
