India's Green Office Space Expected to Hit 700 Million Sq Ft in 2-3 Years
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Synopsis
A recent report forecasts that India's green office inventory will reach 700 million sq ft in the next 2-3 years, with leasing in green-certified buildings expected to increase from 75% to 80-85%. The report highlights the ongoing transformation within the real estate sector towards sustainability.
Key Takeaways
- India's green office inventory to reach 700 million sq ft.
- Leasing in green-certified buildings to rise to 80-85%.
- Green buildings command a rental premium of up to 25%.
- Over 503 million sq ft of green-certified office space as of 2024.
- 80% of new Grade A office supply green-certified since 2020.
Ahmedabad, April 18 (NationPress) The green office space in India is anticipated to reach 700 million square feet (sq ft) within the next two to three years, according to a report released on Friday. It further indicates that the leasing proportion in green-certified buildings is set to increase from the current 75 percent to approximately 80-85 percent in the upcoming years.
India's real estate sector is witnessing a significant evolution, with sustainability becoming a fundamental pillar and key growth driver across various asset classes.
A report by CREDAI-Colliers suggests that green-certified office buildings enjoy higher occupancy rates of 80-90 percent, with rental premiums reaching up to 25 percent.
As of 2024, the stock of green-certified offices in India is approximately 503 million sq ft, accounting for 66 percent of the total Grade A inventory across the top six cities.
The 40 percent growth in green office stock since the start of this decade demonstrates developers' dedication to adapting to the evolving market and changing occupier preferences.
Notably, Bengaluru represents 31 percent of India's green-certified office stock, followed by Delhi-NCR with 19 percent and Hyderabad at 17 percent.
When examining green penetration, which measures the share of green-certified buildings in the total Grade A office stock in each city, Hyderabad leads with a penetration rate of 75 percent, closely trailed by Bengaluru at 73 percent in 2024.
"The real estate sector continues to play a crucial role in facilitating India’s shift towards a sustainable, low-carbon future. With green-certified buildings now comprising a substantial portion of new developments, it is evident that sustainability is becoming a core element of real estate strategy across asset classes," stated CREDAI President Shekhar G. Patel.
"We view this as a critical opportunity to enhance green adoption not only in commercial spaces but also in residential, industrial, and emerging sectors like data centres," he added.
Overall, the green building footprint across various asset classes has nearly doubled in the past five years, reaching 13 billion sq ft in 2024.
As of 2024, there are over 2 million residential units, 6,500 commercial projects, and 750 industrial projects that have been green-certified, and the adoption of sustainability is expected to accelerate across real estate segments in the forthcoming years.
From a supply perspective, in the last five years (2020-2024), around 80 percent of the new Grade A office supply has been green-certified.
