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.
Related News Articles
Cyber Conmen Strike Again: Real Estate Broker Loses ₹2.96 Lakh in Credit Card Scam
A real estate broker in Indore was duped of ₹2.96 lakh by cyber fraudsters who promised to create a credit card with no charges and a limit of ₹1 lakh.
India's Festive Housing Surge: A New Chapter in Real Estate
The festive season in India is poised to ignite the housing market, building on the robust sales trends of 2023 and 2024. With attractive offers and new property launches, the real estate sector is set for a significant boost.
Urban Indian Home Buyers Prefer Apartments and Homeownership: Insights from Knight Frank
Knight Frank's recent survey, 'Banking on Bricks,' highlights a strong preference for apartments and homeownership among urban Indian buyers, with significant generational differences in real estate trends.
Chennai Metropolitan Authority Mandates Departments to Issue NOC within 30 Days
The Chennai Metropolitan Authority has issued a directive to all relevant departments to expedite the No Objection Certificate (NOC) process, ensuring it is completed within 30 days. This initiative aims to streamline the real estate market and provide cl
Aadhar Housing Finance's Net Profit Surges 17.17% in Q3 FY25
Aadhar Housing Finance, a prominent player in the housing finance sector, has reported a robust 17.17% increase in its net profit for the third quarter of Fiscal Year 2025. The company’s net consolidated total income also saw a significant growth of 18.51
Bengaluru Real Estate: NRI Interest Wanes as Property Costs Rise
Bengaluru's real estate market is facing a potential correction as interest from Non-Resident Indians (NRIs) slows down and property costs continue to rise. This trend has sparked discussions about the future of the city's housing sector.