India’s office market embraces sustainability, with 65% of Grade A spaces now green-certified. Bengaluru leads the way, driving demand for eco-friendly offices. Tenants are willing to pay a 12-14% premium for these spaces, recognising their benefits for productivity and well-being. Green certifications are shaping the future of real estate in India.
India’s office market is rapidly embracing sustainability, with over 65% of Grade A office spaces now green-certified, according to a recent report by Vestian. This green transformation underscores the country’s increasing focus on sustainable construction and environmentally responsible business practices.
The report highlights that out of 1,362 Grade A buildings, 59% have secured green certifications, showcasing a significant shift in the real estate sector. Bengaluru, known as India’s Silicon Valley, leads this movement with the highest concentration of green office spaces, totalling 172 million square feet. “As the Silicon City of India, Bangalore has witnessed the shift towards green-certified office spaces,” remarked Ashwinder R. Singh, co-chair of the CII NR Committee on Real Estate.
Adopting green certifications is not just a passing trend but a growing necessity in the real estate industry. “Embracing sustainable practices is not just a trend; it’s a long-term commitment,” said Harsh Gupta, CEO of Sundaram Group, emphasising the lasting impact of these practices on both the environment and business operations.
Beyond environmental benefits, green buildings are also proving to be financially rewarding. The report reveals that tenants are willing to pay a 12-14% premium for green-certified office spaces, recognising the value these spaces bring regarding employee well-being and productivity. “Green buildings enhance employee well-being and productivity, attracting top talent,” noted Deepak Sethi, Director of Projects at Reach Group.
This growing demand for sustainable office spaces is also driving the future of real estate development in India. “Green building certifications are the future of real estate development,” stated Prasoon Chauhan, Founder and CEO of Aurika Homes, highlighting the inevitable shift towards more sustainable practices in the industry.
As India’s office market continues to evolve, green certifications are set to play a crucial role in shaping the future of real estate. With an increasing emphasis on sustainability and evolving business expectations, the trend towards green-certified office spaces is poised to gain even more momentum, ensuring healthier work environments and contributing to a greener planet.
