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
Kalpesh Mehta: The Indian Real Estate Tycoon Behind Donald Trump’s Pre-Inauguration Celebrations
Kalpesh Mehta, the founder of Tribeca Developers, was a notable presence at Donald Trump’s pre-inauguration celebrations in Washington. Discover more about this influential figure in the Indian real estate industry and his connections to the former U.S. P
Suryakumar Yadav and Wife Devisha Purchase Two Luxurious Apartments in Mumbai for Rs 21 Crore
Indian cricketer Suryakumar Yadav and his wife, Devisha, have splurged on two plush apartments in the bustling city of Mumbai, investing a staggering Rs 21 crore. The property acquisition highlights the couple's growing affluence and their preference for
WTC Noida: Navigating Real Estate Challenges with Strategic Acumen
As the NCR real estate market adapts to policy changes and economic uncertainties, the company remains diligent in safeguarding stakeholder interests through strategic planning and innovative solutions.
Global Markets Update: S&P 500 Records Two Straight Weekly Gains Despite Nvidia and Tesla Slides
The global financial markets continue to show resilience, with the S&P 500 marking its second consecutive week of gains. However, the performance of tech giants Nvidia and Tesla has been a mixed bag, with both companies experiencing downturns during the w
Understanding the Limitations of RERA Registry in Complaint Adjudication
The Karnataka High Court has ruled that the Registry of the Real Estate Regulatory Authority (RERA) does not have the power to adjudicate on the maintainability of complaints. This decision highlights the roles and limitations of RERA in handling real estate disputes.
From Grocery Clerk to Billionaire: The Remarkable Story of Yusuf Ali
Discover the inspiring journey of Yusuf Ali, who started as a grocery store worker and went on to become one of India's most notable billionaires. Known for his philanthropic acts, including paying off a Kerala woman's loan, Yusuf Ali's story is a testame