The Rise of Sustainable Commercial Real Estate in India
Ashish Sharma, AVP Operations, Brahma Group, shares his insights on the growing trend of green commercial real estate in India.
Green BuildingsCommercial Real EstateSustainabilityEco FriendlyIndiaReal EstateJun 27, 2024
According to the International Energy Agency, building constructions account for 36% of global energy use and 39% of greenhouse gas emissions annually. The integration of sustainable practices in real estate development can significantly decrease these figures. In India, the green penetration in the commercial real estate segment has surged to 61% in Q4 2023, with green-certified Grade A office stock expected to surpass 550 million sq ft by 2026.
The demand for sustainable commercial office spaces is on the rise, prompting developers to seek green building certifications, such as LEED and GRIHA. These certifications enhance the appeal of properties to environmentally conscious tenants and investors. The Government of India has also introduced programs and incentives to encourage eco-friendly design and construction practices.
The future of green real estate looks bright, as property buyers, investors, and construction industry players recognize the benefits of a sustainable economy. Studies show that green-certified buildings enjoy enhanced occupancy rates and command rental premiums, making sustainable commercial spaces and green leasing the future of Indian real estate. Developers in India are poised to create green buildings that safeguard the environment for generations to come, matching their needs.
Sustainable commercial real estate has become integral for achieving global net-zero targets, and India's contribution to this course is praiseworthy and noticeable. The collective action of all stakeholders and supportive government policies have accelerated the green mission of India.
Frequently Asked Questions
What is the current trend in the Indian commercial real estate sector?
The current trend in the Indian commercial real estate sector is the growing demand for green and sustainable buildings.
What are the benefits of green buildings?
Green buildings offer numerous benefits, including reduced energy consumption, lower gas emissions, healthier living environments, increased property value, and lower maintenance costs.
What is the expected growth of green-certified office stock in India by 2026?
The green-certified Grade A office stock is expected to surpass 550 million sq ft by 2026, accounting for 65-70% of the overall office stock in India.
What are the popular green building certifications in India?
The popular green building certifications in India include LEED, GRIHA, and WELL.
What is the government's role in promoting sustainable real estate practices in India?
The Government of India has introduced programs and incentives to encourage eco-friendly design and construction practices, and has also set targets to reduce greenhouse gas emissions and achieve global net-zero targets.
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