Sustainability rapidly redefines priorities in commercial real estate as developers and investors increasingly view green design as essential, not optional. In an industry once dominated by location and cost, environmental performance is now a core value driver.

Christiana Figueres, a key architect of the Paris Agreement, once emphasised, “We cannot afford to treat sustainability as a side project — it is the main project.” This mindset is gaining traction across boardrooms worldwide. According to the Thomson Reuters State of Corporate ESG Report 2024, 71% of global C-suite executives now see sustainability as a competitive edge, with 82% expecting it to play a larger role in future business performance.

The message is resonating clearly in commercial real estate. Tenant demands, regulatory frameworks, and investor expectations are aligning around sustainability. Green buildings—designed for energy efficiency and resource optimisation—are environmentally and financially sound. They offer lower operating costs, improved tenant retention, and more substantial long-term asset value.

A recent Knight Frank report highlights the economic advantages. In India, green-certified commercial buildings command up to 10% higher rent and attract 15% more investor interest than traditional structures. “Sustainability isn’t just a value; it is value creation,” the report concludes, underlining the clear market shift.

In parallel, real estate developers embrace renewable energy solutions to reduce carbon footprints and energy expenses. With the help of solar power, battery storage, and AI-driven energy management, buildings are cutting energy costs by up to 70%. These advances aren’t just ticking ESG boxes—they’re becoming key differentiators in lease negotiations, particularly for Global Capability Centres (GCCs) and multinationals with stringent sustainability mandates.

Moreover, green construction is opening new financial channels. Developers meeting credible sustainability benchmarks now qualify for green bonds, concessional finance, and sustainability-linked loans. Global institutions like the International Finance Corporation are actively funding such projects. Government support through tax rebates, additional floor space index (FSI), and fast-track approvals further boosts the incentive.

The momentum is unmistakable. From electric vehicle (EV) charging stations to district cooling systems and water recycling, sustainable infrastructure is no longer futuristic—it’s foundational. Each investment in sustainability, from solar panels to intelligent energy systems, strengthens urban resilience and property value.

The bottom line for developers is clear: design with the planet in mind, and profits will follow.