India's Real Estate Sector Steps Up Sustainability Efforts with Over 65% Green-Certified Office Buildings
India's real estate sector is shifting towards sustainable construction, with over 65% of Grade A office space in top 7 cities being green-certified, driven by the 2070 net-zero target.
Green Certified Office BuildingsReal EstateSustainabilityLeed CertificationIgbcVestianReal Estate PuneJul 16, 2024
As global occupiers increasingly seek out sustainable office spaces, developers are prioritizing international certifications to stay competitive. The dominance of LEED certification, with a 74% share as of Q2 2024, is a testament to this trend. Moreover, the majority of green-certified buildings in India hold Gold certifications, with 49% certified under LEED and 51% accredited under IGBC.
Southern cities, including Bengaluru, Chennai, and Hyderabad, account for a substantial 58% of India's total green stock. Bengaluru boasts the highest green stock, with an impressive 172 million sq ft, while Chennai takes the lead in terms of percentage share, with 83% of its Grade A stock holding green certifications.
Interestingly, Kolkata, which has the lowest stock of Grade A office buildings, still manages to boast an impressive 62% of green-certified office spaces. In contrast, Pune, despite being a hub for MNCs, has the lowest percentage of green-certified office buildings, at 56%.
The benefits of going green are evident, with green-certified buildings commanding a 12% to 14% premium over non-green buildings. This demonstrates that developers who invest in sustainable construction are rewarded with higher returns, as occupiers are willing to pay a premium for eco-friendly office spaces.
Vestian, a leading consultancy firm, has played a significant role in driving this shift towards sustainability in India's real estate sector. By prioritizing green certifications, developers are not only reducing their carbon footprint but also attracting high-quality tenants and commanding premium rents.
In conclusion, India's real estate sector is taking significant strides towards sustainability, driven by the government's net-zero target and the growing demand for eco-friendly office spaces. As the sector continues to evolve, it will be interesting to see how developers and occupiers work together to create a more sustainable built environment.
Frequently Asked Questions
What percentage of Grade A office space in India's top 7 cities is green-certified?
Over 65% of Grade A office space in India's top 7 cities is green-certified.
Which certification dominates the Indian office market?
LEED certification dominates the Indian office market, with a 74% share as of Q2 2024.
Which city has the highest green stock in India?
Bengaluru has the highest green stock, with an impressive 172 million sq ft.
What is the premium commanded by green-certified buildings over non-green buildings?
Green-certified buildings command a 12% to 14% premium over non-green buildings.
What is the target year for India to achieve net zero emissions?
India aims to achieve net zero emissions by 2070.
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