Hyderabad has emerged as the frontrunner in India’s green office leasing market, securing 68% of the total leasing activity in the city with 8.4 million sq ft of green-certified Grade A office space in 2024. The city now boasts 86.7 million sq ft of such office space, reflecting a significant shift towards sustainability in the commercial real estate sector. With the largest share of green-certified office stock in India, Bengaluru follows closely, holding 158.2 million sq ft. Delhi NCR ranks third with 93.8 million sq ft of green space.

Nationwide, green-certified office space accounted for 66% of the total Grade A office stock by the end of 2024. This includes major markets like Bengaluru, Delhi NCR, and Hyderabad, which collectively contribute to nearly 70% of the total green-certified inventory in the country. Green leasing has also significantly boosted, making up 74% of India’s total leasing in 2024, with 49.1 million sq ft leased in sustainable buildings.

“Green-certified office spaces are not just environmentally responsible—they are also more attractive from a financial perspective,” said a market expert. These spaces achieve higher occupancy rates, ranging from 80% to 90%, compared to non-certified buildings with lower occupancy rates. Additionally, rental premiums for green offices are notable, with Mumbai leading at 24%, Chennai at 16%, Hyderabad at 14%, and Delhi NCR at 13%.

India’s green office inventory is set to grow significantly, with projections suggesting nearly 700 million sq ft of green-certified space by 2027. New developments and strong demand from occupiers will drive this growth, with approximately 80% of new Grade A office supply between 2020 and 2024 already green-certified. This trend is expected to continue, with 80-85% of office leases anticipated to be in sustainable buildings in the coming years.

Retrofitting older office buildings also presents a significant opportunity for sustainability investments. Over 350 million sq ft of office space older than 10 years could undergo retrofitting, offering a potential investment of Rs 425 billion. Moreover, newer office buildings can also be upgraded at a lower cost, creating further opportunities for enhancing sustainability.

Adopting green practices extends beyond offices to other real estate sectors, such as data centres, healthcare, hospitality, and retail. Data centres focus on renewable energy and efficiency, with capacity expected to exceed 3,500 MW in the next 3–5 years.

As of 2024, India’s total green-certified footprint across all asset classes reached 13 billion sq ft, including over 2 million residential units and more than 6,500 commercial buildings. The demand for energy-efficient, environmentally responsible spaces continues to grow, driven by regulatory pressure, climate goals, and increasing investor interest in ESG (Environmental, Social, and Governance) objectives.

Real estate developers and occupiers increasingly recognise green buildings’ long-term operational and economic benefits, from reduced energy costs to better tenant retention. The nationwide push toward sustainability is shaping the future of India’s property market, signalling a strong commitment to creating a low-carbon built environment.