India's Leap Towards Sustainable & Innovative Workspace Design
- Industry News
- March 13, 2024

Hyderabad leads India’s green office leasing in 2024, with 68% of its leasing activity in green-certified spaces. Nationwide, green-certified offices account for 66% of Grade A stock. The demand for sustainable buildings is rising, driven by higher occupancy, rental premiums, and a push for energy efficiency across various sectors.
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India’s green office space is set to reach 700 million square feet within the next 2-3 years, with green-certified buildings accounting for 80-85% of leasing activity. Bengaluru, Delhi-NCR, and Hyderabad lead in green office stock, contributing to India’s push toward a sustainable, low-carbon economy in real estate.
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India’s office leasing reached 19.46 million square feet in Q1 2025, driven by strong domestic and global demand. Bengaluru led leasing activity, with flex spaces dominating key cities. Net absorption surged 54%, while vacancy rates dropped to a four-year low, signalling a bullish outlook for the sector.
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India’s REIT market is on a strong growth trajectory, expanding beyond office spaces into retail and hospitality. Backed by stable financials, rising demand for Grade A assets, and supportive regulations like Small and Medium REITs, the sector is set to attract broader investor interest across major and emerging cities.
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Amid U.S.-China trade tensions and falling rents, Asia-Pacific office tenants favour flexible workspaces and short-term leases. Landlords prioritise tenant retention, while markets like India and Southeast Asia show resilience. Hong Kong remains the priciest despite a prolonged slump, with regional office supply expected to rise further.
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India’s commercial real estate market is booming, with vacancy rates hitting record lows in significant cities. Awfis MD Amit Ramani attributes this to rising urbanisation, increased demand from IT firms, and a strong return-to-office trend, with flexible workspaces playing a key role in driving growth.
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