65% of office space in India is green-certified

The report highlighted that among 1,362 Grade A buildings, 805, that is 59 per cent, boast of green certifications, highlighting India’s growing commitment to sustainable construction

Over 65 per cent of Grade A office space across top seven cities of India is green-certified, revealed Vestian Research report.

The report further highlighted that among 1,362 Grade A buildings, 805, that is 59 per cent, boast of green certifications, highlighting India’s growing commitment to sustainable construction. In fact, international certifications are being prioritised by developers as the country’s office market is attracting more global occupiers. This trend is reflected in the dominance of LEED certification, which accounts for 74 per cent share as of Q2 2024. Moreover, Gold is the most prominent certification in the Indian office market as 49 per cent of buildings are certified gold under LEED and 51 per cent are accredited gold under IGBC.

Interestingly, Grade A office buildings with a built-up area of less than 5 lakh sq ft account for 47 per cent of the total number of green-certified buildings while office buildings with a built-up area of more than 10 lakh sq ft account for only 19 per cent of the total number of green-certified buildings. Despite this, 90 per cent of the total projects within this category still qualify as green buildings. Notably, green certification is rare in office buildings with a built-up area of less than 1 lakh sq ft.

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Southern cities including Bengaluru, Chennai and Hyderabad account for 58 per cent of the total green stock pan-India. Out of this, Bengaluru accounts for the highest, that is 172 Mn sq ft, green stock amongst the top seven cities of India. Chennai accounts for the highest percentage share, 83 per cent, of green stock out of the city’s total Grade A stock.

The top seven cities in the list are Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, NCR, Pune.

In Kolkata, 62 per cent of the area is green-certified Despite having the lowest stock for Grade A office buildings in pan-India. On the other hand, Pune has the lowest percentage, 56 per cent, of green-certified office buildings despite the prominence of MNCs in city leasing.

When it comes to rental values, green-certified buildings command a 12- 14 per cent premium on average over non-green buildings. Bengaluru leads the pack with a premium of 23-25 per cent with Chennai and Hyderabad following behind at 12-14 per cent and 13-15 per cent, respectively. However, developers in Mumbai and Pune charge 8-12 per cent premium in rentals for green-certified buildings compared to non-certified areas.