Over 65% of Grade A office space across India’s top seven cities has achieved green certification. This milestone underscores India’s growing commitment to sustainable construction, according to a report by consultancy firm Vestian.
As the second-largest employer in India, the real estate sector plays a crucial role. However, it also contributes significantly to carbon emissions—accounting for 39% of the country’s total. The government’s ambitious goal of achieving net-zero emissions by 2070 is expected to shape the Indian real estate market significantly.
With India’s office market attracting global occupiers, developers are increasingly prioritizing international certifications. Leading the way is the Leadership in Energy and Environmental Design (LEED) certification, which currently holds a remarkable 74% share among green-certified buildings as of Q2 2024.
Gold Certification Dominance
Among the various certifications, Gold stands out as the most prominent in the Indian office market. Approximately 49% of buildings are certified gold under LEED, while 51% hold gold accreditation under the Indian Green Building Council (IGBC).
Southern cities—Bengaluru, Chennai, and Hyderabad—account for a substantial 58% of the total green stock pan-India. Bengaluru, with an impressive 172 million square feet of green-certified space, leads the pack among the top seven cities.
Chennai boasts the highest percentage share of green stock, with a remarkable 83% of its total Grade A office space being green-certified.
Despite having the lowest stock of Grade A office buildings nationwide, Kolkata surprises with 62% of its area being green-certified. In contrast, Pune lags behind at 56%, despite the city’s prominence in hosting multinational corporations.
Developers investing in sustainable development reap rewards. Green-certified buildings command an average premium of 12% to 14% over non-green counterparts, demonstrating the value of environmentally conscious construction. India’s commitment to sustainable real estate practices is evident through the widespread adoption of green certifications. As the market continues to evolve, developers and occupiers alike recognize the long-term benefits of environmentally friendly buildings.
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