Sustainable Office Spaces Take Center Stage in India: 65% of Grade A Offices Now Green-Certified
India's office market is shifting towards sustainability, with over 65% of Grade A office space in top cities now green-certified.
Green Certified Office SpacesSustainable ConstructionIndian Real EstateLeed CertificationIgbc CertificationReal Estate MumbaiJul 16, 2024
This shift towards sustainability is largely driven by the growing demand from global occupiers. Developers are increasingly prioritizing international certifications, with LEED certification being the most prominent, holding a 74% share as of Q2 2024. The Indian office market is dominated by Gold certified buildings, with 49% of buildings certified gold under LEED and 51% accredited gold under IGBC.
A city-wise breakdown reveals that Bangalore, Chennai, and Hyderabad account for 58% of the total green stock across India. Bangalore boasts the highest green stock, with 172 million square foot of green-certified office space. Chennai, on the other hand, has the highest percentage share, with 83% of its total Grade A stock being green-certified.
Interestingly, Grade A office buildings with a built-up area of less than 5 lakh sqft account for 47% of the total number of green-certified buildings. Despite this, 90% of the total projects within this category still qualify as green buildings, showcasing a strong focus on sustainability.
Green-certified buildings command a premium of 12% to 14% on average over non-green buildings. This demonstrates that developers are rewarded for their initial investment in sustainable development, as they can charge a premium from occupiers. Bangalore leads the pack with a premium of 23-25%, followed by Chennai and Hyderabad.
As India's office market continues to evolve, it is clear that sustainability is becoming a key differentiator. With a growing emphasis on environmental responsibility and employee well-being, green-certified office spaces are set to become the new norm.
Frequently Asked Questions
What percentage of Grade A office space in India's top seven cities is green-certified?
65%
Which city has the highest percentage share of green-certified office space?
Chennai, with 83% of its total Grade A stock being green-certified
What is the average premium commanded by green-certified buildings over non-green buildings?
12% to 14%
Which certification is the most prominent in India's office market?
LEED certification, holding a 74% share as of Q2 2024
What is the primary driver of the shift towards sustainability in India's office market?
The growing demand from global occupiers
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