Sustainable Spaces: India's Top Cities Boast 65% Green-Certified Grade A Office Spaces
India's push for net-zero emissions is driving the real estate market towards sustainable construction, with over 65% of Grade A office spaces in top 7 cities holding green certifications.
Green Certified Office SpacesSustainable ConstructionNet Zero EmissionsReal Estate MarketIndiaReal Estate NewsJul 19, 2024
Out of a total of 1,362 Grade A buildings, 805 buildings (or 59%) have been awarded green certifications, indicating a significant shift towards eco-friendly development. The trend is largely driven by the increasing demand from global occupiers, who are attracted to India's office market. As a result, developers are prioritizing international certifications, such as Leadership in Energy and Environmental Design (LEED) and Indian Green Building Council (IGBC) certification.
LEED certification dominates the market, accounting for a substantial 74% share as of Q2 2024. The Gold certification is the most prominent, with 49% of buildings certified Gold under LEED and 51% accredited Gold by IGBC. While Pune has the lowest percentage (56%) of green-certified office buildings, despite being a hub for multinational corporations, there is still a strong focus on sustainability in the city's real estate market.
Interestingly, smaller office buildings with a built-up area of less than 1 lakh sq ft are less likely to have green certifications, suggesting a lower preference for sustainability practices among small and medium-scale developers and occupiers. However, 90% of projects with a built-up area of more than 10 lakh sq ft qualify as green buildings, showcasing a strong commitment to sustainability.
The benefits of green certification are twofold. Not only do developers reap the rewards of their initial investment in sustainable development, but they can also charge a premium from occupiers. In Mumbai and Pune, developers charge an 8-12% premium in rentals for green-certified buildings compared to non-certified areas. This demonstrates the increasing importance of sustainability in the Indian real estate market.
Information
Vestian Research is a leading commercial real estate market research firm that provides in-depth analysis and insights into the Indian real estate market.
Vestian Research is a reputable research firm that offers comprehensive research and analysis on the Indian commercial real estate market. With its expertise and knowledge, Vestian Research provides valuable insights that help stakeholders make informed decisions.
Frequently Asked Questions
What percentage of Grade A office spaces in India's top 7 cities are green-certified?
Over 65% of Grade A office spaces in India's top 7 cities are green-certified.
Which certification dominates the Indian office market?
LEED certification dominates the market, accounting for a substantial 74% share as of Q2 2024.
What is the premium charged by developers for green-certified buildings in Mumbai and Pune?
Developers in Mumbai and Pune charge an 8-12% premium in rentals for green-certified buildings compared to non-certified areas.
What is the significance of green certification in the Indian real estate market?
Green certification demonstrates a developer's commitment to sustainability and allows them to charge a premium from occupiers.
Which city has the lowest percentage of green-certified office buildings?
Pune has the lowest percentage (56%) of green-certified office buildings.
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