Green Buildings Gain Traction in India's Office Markets
Occupiers increasingly prefer leasing in green-certified buildings, with Mumbai and Bengaluru leading the way, as real estate developers align with global sustainability standards.
Green BuildingsSustainabilityReal EstateIndiaOffice MarketReal Estate MumbaiAug 13, 2024
This rapid growth is indicative of the rising awareness among corporate occupiers about the role built structures play in mitigating climate change by reducing carbon footprint. Mumbai and Bengaluru led the pack, together accounting for over 50% of leases in green-certified buildings in Q2 2024. Interestingly, about 60% of the 13 million square feet of leases signed in green buildings were in relatively newer developments that have come up in the last five years.
Real estate developers are increasingly aligning their offerings with global sustainability standards, presenting various tangible benefits to their tenants, including lower operational costs, improved indoor air quality, and enhanced employee productivity. Currently, LEED, GRIHA, and WELL are some of the prominent green certifications available in the Indian market, which validate buildings as 'green' by assessing various parameters, including energy consumption, waste generation, and alignment of design with health and wellness aspects.
City-wise leasing in green buildings from Q1 2023 to Q2 2024 reveals some interesting trends. Bengaluru led the way, with 16.52 million square feet of leasing in green-certified buildings, followed closely by Chennai and Delhi NCR. Mumbai, Hyderabad, and Pune also saw significant leasing activity in green-certified buildings.
The sector-wise breakdown of leasing in green-certified buildings reveals that technology and BFSI sectors are leading the way, with 27% and 29% shares, respectively. Engineering and manufacturing, and technology sectors also saw significant leasing activity in green-certified buildings.
As the Indian real estate market continues to evolve, it is clear that green-certified buildings are becoming increasingly attractive to occupiers. With their numerous benefits, including reduced operational costs and improved indoor air quality, it is likely that green buildings will continue to gain traction in the Indian office market.
Frequently Asked Questions
What is the significance of green-certified buildings in India's office market?
Green-certified buildings are gaining traction in India's office market due to their numerous benefits, including reduced operational costs, improved indoor air quality, and enhanced employee productivity.
Which cities in India have seen the highest leasing activity in green-certified buildings?
Mumbai and Bengaluru have led the way, together accounting for over 50% of leases in green-certified buildings in Q2 2024.
What are the prominent green certifications available in the Indian market?
LEED, GRIHA, and WELL are some of the prominent green certifications available in the Indian market, which validate buildings as 'green' by assessing various parameters, including energy consumption, waste generation, and alignment of design with health and wellness aspects.
Which sectors have seen significant leasing activity in green-certified buildings?
Technology and BFSI sectors have led the way, with 27% and 29% shares, respectively. Engineering and manufacturing, and technology sectors also saw significant leasing activity in green-certified buildings.
What is the future outlook for green-certified buildings in India's office market?
As the Indian real estate market continues to evolve, it is clear that green-certified buildings are becoming increasingly attractive to occupiers, and are likely to continue to gain traction in the Indian office market.
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