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Among all sectors, the technology sector accounted for the highest share, about 27 per cent, in the cumulative space taken up in green-certified buildings since January 2023 | Photo: Shutterstock
Occupiers’ preference to lease green-certified buildings, called so because they are environmentally responsible and resource-efficient, has been seeing an uptick in India.
During the April-June quarter this year, 12.9 million square feet (msf) of office space has been leased in green-certified buildings across the top six cities in India, according to data shared by real estate consultancy Colliers on Tuesday.
This represents a 24 per cent increase compared to 10.5 msf in the same quarter in 2023 and accounts for 82 per cent of all total office leasing (15.8 msf) during the quarter.
Currently, several green-certifications like Leadership in Energy and Environmental Design (LEED) and Green Rating for Integrated Habitat Assessment (GRIHA) are available in the Indian market, which validate buildings as ‘green’ by assessing various parameters including energy consumption, waste generation and alignment of design with health and wellness aspects.
“Real estate developers are increasingly aligning their offerings with global sustainability standards, simultaneously presenting various tangible benefits to their tenants including lower operational costs, improved indoor air quality and enhanced employee productivity,” Colliers said.
The data was shared for six cities — Bengaluru, Chennai, Delhi NCR, Hyderabad, Mumbai and Pune. Since January 2023, the highest leasing of green-certified office buildings was witnessed in Bengaluru at 16.5 msf. It was followed by 11.8 in Delhi NCR and 11.2 msf in Chennai.
Among all sectors, the technology sector accounted for the highest share, about 27 per cent, in the cumulative space taken up in green-certified buildings since January 2023.
It was followed by occupiers from the Engineering & Manufacturing and BFSI sectors with a 19 per cent share each.
Arpit Mehrotra, Managing Director, Office Services, India, Colliers said that the increased interest of occupiers in green buildings is also due to the Securities and Exchange Board of India’s mandatory sustainability reporting norm.
According to the market regulator’s Business Responsibility and Sustainability Reporting framework, the top 1000 listed companies in India (by market cap) must disclose their Environmental, Social, and Governance-related information as a mandatory process.
The data from Colliers also highlighted that with the rise in demand for green-certified buildings, their supply is also witnessing an uptick. As of June 2024, about 67 per cent of the Grade A office buildings in India were green-certified.
Since January 2023, green buildings have accounted for 78 per cent of all office space supply in the country. The consultancy predicted that in the next two to three years, the majority of the over 150 msf Grade A office developments in various stages of construction across the six major cities are likely to be green-certified.
This would increase the total Grade A green stock to over 600 msf in India.
“With growing demand, developers are also retrofitting ageing office stock and incorporating sustainable elements in overall building design and construction,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.
“About 300-350 msf of commercial building stock older than 10 years hold the potential to get refurbished in the next few years and add to the green-certified office stock of the country,” Nadar said.
First Published: Aug 13 2024 | 10:57 AM IST
