Over 65% office buildings are green-certified in India

Over 65% of Grade A office space across India’s top 7 cities is green-certified, highlighting India’s growing commitment to sustainable construction, according to consultancy firm Vestian. The real estate sector is the 2nd largest employer in India, accounting for 39% of carbon emissions. The government’s constant push to achieve net zero emissions by 2070 is likely to play a pivotal role in shaping the real estate market in India.As India’s office market attracts global occupiers, developers are increasingly prioritizing international certifications. This trend is reflected in the dominance of LEED certification, which accounts for a remarkable 74% share as of Q2 2024. Moreover, Gold is the most prominent certification in the Indian office market as 49% of buildings are certified gold under LEED and 51% are accredited gold under IGBC.Southern cities (Bengaluru, Chennai, and Hyderabad) account for 58% of the total green stock pan-India. Bengaluru accounts for the highest, 172 million sq ft, green stock amongst the top seven cities of India. Chennai accounts for the highest percentage share, 83%, of green stock out of the city’s total Grade A stock.Despite having the lowest stock for Grade A office buildings in pan-India, 62% of the area is green-certified in Kolkata. On the other hand, Pune has the lowest percentage, 56%, of green-certified office buildings despite the prominence of MNCs in city leasing.Green-certified buildings command a 12% to 14% premium on average over non-green buildings. This demonstrates that developers are rewarded for initial investment in costly sustainable development, as they can charge a premium from occupiers.



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