728 x 90
728 x 90

Over 65% of Grade A Office Spaces in India’s Top Cities are Green-Certified | Vestian.

Over 65% of Grade A Office Spaces in India’s Top Cities are Green-Certified | Vestian.

Over 65% of Grade A office spaces in India’s top seven cities are green-certified, with Bengaluru leading in total green space and Chennai boasting the highest percentage. LEED Gold certification is prevalent, reflecting a strong demand for sustainable and flexible office solutions.

As India advances towards its goal of net-zero emissions by 2070, the real estate sector is embracing ESG (environmental, social, and governance) factors more than ever. According to Bengaluru-based real estate consultancy Vestian Research, over 65% of Grade A office spaces in India’s top seven cities are now green-certified. Of 1,362 Grade A buildings in these cities, 805 have achieved green certification.

The Leadership in Energy and Environmental Design (LEED) certification is particularly prominent, accounting for a 74% market share by Q2 2024. Gold LEED certification is the most common, with 49% of buildings holding this designation. The Indian Green Building Council (IGBC) also reflects this trend, with 51% of green-certified buildings attaining Gold status. These certifications indicate that buildings excel in sustainable design and operation, achieving over 60% of the LEED points.

Southern cities, including Bengaluru, Chennai, and Hyderabad, lead the charge in green building stock, comprising 58% of India’s total. Bengaluru is at the forefront with 172 million square feet of green-certified space. Chennai boasts the highest percentage, with 83% of its Grade A stock being green-certified. Despite having the fewest Grade A buildings, Kolkata impresses with 62% green certification, while Pune, a major hub for multinational companies, lags with the lowest percentage at 56%.

Vestian’s research further highlights that Grade A office buildings with a built-up area of less than 500,000 square feet make up 47% of all green-certified buildings. Larger buildings, exceeding 1 million square feet, account for only 19%, though 90% still need to meet green standards.

The market rewards sustainable investments, as green-certified buildings typically command a 12-14% rental premium over non-green buildings. By leading this trend, Bengaluru sees 23-25% premiums, underscoring the city’s strong focus on sustainability. Chennai and Hyderabad follow closely, with premiums of 12-14% and 13-15%, respectively. This willingness to pay more for green-certified spaces highlights the importance of environmental responsibility and employee well-being in these tech hubs. In contrast, Mumbai and Pune offer an 8-12% premium for green-certified buildings compared to their non-certified counterparts.

Parul Thakur, Senior Vice President & Business Head at COWRKS, emphasized the growing demand for sustainable workspaces. “The launch of these new centres reflects the growing demand for Grade A flexible office solutions from both startups and large enterprises, which aligns with our strategic goals,” Thakur said.

The green building movement in India’s major cities is a testament to the real estate sector’s commitment to sustainability. With increasing companies prioritizing eco-friendly spaces, green certification is expected to continue, driving both environmental and economic benefits in the long term.

Flexinsights
ADMINISTRATOR
PROFILE

Posts Carousel

Latest Posts

Top Authors

Most Commented

Featured Videos